Cisco Rides Data Center Wave with AI Networking Strategy
Cisco Systems (CSCO) is one of several non-chip companies benefiting from data center expansion, and its AI networking strategy looks strong. With a price target of $125.42 over the next 12 months, the stock has an upside of 17.6%.
The current price is $106.63, making Cisco a buy according to 24/7 Wall St.'s model. The company's AI infrastructure revenue is expected to nearly double to $7.5B in fiscal 2027, up from $4B this year.
Cisco trades at a discount compared to its peers, including Arista Networks (ANET) and Hewlett Packard Enterprise (HPE), despite strong growth in revenue and AI infrastructure orders.
Management expects AI infrastructure revenue of about $7.5B in fiscal 2027, up from roughly $4B this year. CEO Chuck Robbins said on the call, 'We believe we're only at the beginning of this super cycle.'