Broadcom Edges Out Cisco as Top AI Play Amid Infrastructure Boom
Cisco Systems (NASDAQ: CSCO) and Broadcom (NASDAQ: AVGO) recently reported strong AI-heavy quarters, but their performance tells a different story.
Cisco's revenue grew 17.6% year-over-year in Q4 FY2026, driven by an enterprise networking refresh. The company's AI infrastructure orders reached $9.3 billion for the full year, exceeding its initial target of $5 billion. CEO Chuck Robbins declared that 'the accelerating adoption of agentic AI is fueling a networking super cycle.'
Broadcom, on the other hand, saw Q2 revenue surge 47.9% YoY to $22.2 billion, fueled by hyperscaler-fueled AI silicon demand. The company's CEO Hock Tan flagged AI bookings above $30 billion and reiterated a fiscal 2027 AI target in excess of $100 billion.
On a pure AI-exposure basis, Broadcom screens more favorably, with a 23x forward P/E against 200%+ AI revenue growth. However, Cisco's diversified enterprise base and 1.37% dividend yield make it an attractive option for investors seeking steady compounding with an AI kicker.