Cisco

CSCO

Market cap $322B

Cisco Systems remains a buy as AI infrastructure momentum remains strong and valuation stays discounted versus the IT sector. Q2 revenue grew 9.71% YoY, with networking orders up 20% and AI infrastructure orders from hyperscalers surging to $2.1 billion. Gross margin contracted due to memory costs, but strong OPEX control and raised full-year EPS guidance support resilient profitability.

Cisco Systems stands out with expanding security offerings and a lower valuation, while CrowdStrike faces slowing growth despite solid platform adoption.

Cisco's most recent quarter reads like more than a routine beat-and-raise cycle. Revenue grew roughly 10% year over year to $15.35B. The way to frame Cisco today is that it's being repriced from “mature networking plus dividend” into something closer to “critical AI-era infrastructure with platform optionality.”. The reason Cisco isn't universally treated as the next AI infrastructure compounder is that the market can see the friction points.

All the Magnificent 7 stocks that absolutely ruled the S&P 500 for three years are down in 2026, and with their decline, a tidy $ 2.1 trillion in market capitalization has been removed and is gone with the wind.

Jason Brown (@brownreport) returns to Big 3 and offers stocks he sees adding muscle to the AI infrastructure theme. He sees Amazon (AMZN) "at the beginning, not the end" of its AWS capabilities, Cisco (CSCO) benefitting from hyperscaler and neocloud orders, and CrowdStrike (CRWD) serving as a crucial backbone for software as AI buildout continues.

CSCO rides AI-driven security demand as FTNT and FFIV gain from cloud and enterprise spending, making all three stocks compelling buys.

Among AI stocks, cloud computing giants have been the biggest spenders on data centers. But enterprise spending will pick up, says Goldman Sachs.

From a technical perspective, Cisco Systems (CSCO) is looking like an interesting pick, as it just reached a key level of support. CSCO recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

News Summary Two‑thirds of industrial organizations have moved to active AI deployments in live operational environments. Network readiness and security posture are cited as the primary factors shaping how quickly and safely organizations scale AI across connected assets, machines, and sites.

Cisco Systems (CSCO) closed the most recent trading day at $80.44, moving +1.79% from the previous trading session.