Shares of network gear maker Cisco Systems Inc. (NASDAQ:CSCO) touched a record high on Wednesday, surpassing its dot-com peak for the first time in 25 years.
Cisco Hits New Record Amid Comeback
Cisco’s stock closed 0.93% higher at $80.25, marking a nearly 1% increase and surpassing its previous split-adjusted record of $80.06, which was achieved on March 27, 2000— the same day Cisco briefly surpassed Microsoft (NASDAQ:MSFT) to become the world's most valuable publicly traded company.
Cisco briefly became a star of the internet boom thanks to soaring demand for its networking gear, but its rise quickly reversed when the dot-com bubble burst, wiping out much of its market value. After two decades, Cisco’s market cap now stands at $317 billion.
AI Demand Fuels Cisco's Strong Q1 Beat
In November, Cisco topped Wall Street’s expectations with first-quarter revenue of $14.88 billion and adjusted earnings of $1.00 per share, and boosted its full-year outlook on strong AI demand. The company also hinted at a significant AI ramp, which led JPMorgan to predict that the company’s 2026 orders could surprise to the upside.
Hyperscalers placed $1.3 billion in Q1 orders, and Cisco now expects about $3 billion in AI infrastructure revenue from these customers in fiscal 2026.
Additionally, Cisco’s partnership with IBM (NASDAQ:IBM) to build the foundation for a networked distributed quantum computing system by the early 2030s could further boost its market position.
Moreover, Cisco’s recent focus on 5G-era security and AI infrastructure, with the introduction of new firewall, encryption, and threat-detection technologies, has also contributed to its stock growth. On a year-to-date basis, the stock surged 35.79%, as per data from Benzinga Pro.
Benzinga's Edge Rankings place Cisco in the 50th percentile for quality and the 16th percentile for value, reflecting its mixed performance. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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