Cisco Stock: AI Surge Propels Shares to Two-Decade High

Cisco's stock has achieved a remarkable milestone, soaring to its highest level since the dot-com era with shares reaching $66.36, marking a dramatic six percent surge. This renaissance in market performance is primarily driven by the company's expanding artificial intelligence infrastructure business, which generated orders worth $350 million in the previous quarter and accumulated nearly $700 million in the first half of the fiscal year. The technology giant reported impressive overall results, with revenue climbing 9 percent to $14 billion in the second fiscal quarter, though net profits experienced a modest decline to $2.4 billion.

Strategic Growth Initiatives

In a bold move reflecting confidence in future prospects, Cisco's management has revised its annual revenue forecast upward to a minimum of $56 billion, surpassing analyst expectations. The company anticipates maintaining strong momentum with projected revenue of approximately $14 billion for the current quarter. Additionally, Cisco has demonstrated its financial strength by announcing an extensive share buyback program, allocating an additional $15 billion and bringing the total available funds for stock repurchases to $17 billion, a decision that has further bolstered investor confidence.