Cisco Systems Soars 3.44% on AI-Driven Growth

On May 15, 2025, Cisco Systems rose 3.44% in pre-market trading, reflecting strong investor confidence in the company's recent performance and future prospects.

Cisco's recent financial performance has been bolstered by its strong position in the AI-driven network hardware market. The company's cloud AI orders have surged from $350 million to $600 million per quarter, indicating a growing demand for AI-related infrastructure. This trend is expected to continue, with Cisco's management forecasting increased AI-related revenue in the coming years.

Cisco's collaboration with NVIDIA has also been a significant factor in its recent success. The partnership has enabled Cisco to leverage NVIDIA's advanced AI GPU technology, providing high-performance network infrastructure solutions that support AI training and inference. This collaboration has positioned Cisco to benefit from the global trend of large-scale data center construction and upgrades driven by AI demand.

Despite economic uncertainties and potential tariff impacts, Cisco's CEO, Chuck Robbins, has expressed confidence in the company's ability to maintain its momentum. Robbins highlighted that AI investments remain a priority for customers, and the company has not seen any significant changes in purchasing patterns. This optimism is supported by Cisco's strong financial performance, with revenue and earnings per share exceeding analyst expectations in the third quarter of the 2025 fiscal year.