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Data Center Demand Surge Lifts Networking, Server Stocks

Cisco shares jumped nearly 15% in premarket trading Thursday following a blowout quarter driven by substantial hyperscaler orders for networking equipment. The networking giant's performance underscores robust appetite for data center infrastructure as major cloud operators expand capacity. Dell's price target received a boost to $290 from $235 at Citi ahead of its May 28 report, with analysts highlighting the company's scale and pricing flexibility as advantages amid rising memory costs. Broadcom also gained analyst support, with Wells Fargo raising its price target to $545 from $430, citing significant upward revisions to AI chip revenue forecasts and underappreciated momentum in networking operations. Demand continues broadening beyond hyperscalers into broader market segments.