Cisco Stock Soars on AI Infrastructure Orders
Cisco (CSCO) stock has been on a tear since May 13, 2026, when management raised full-year guidance for both revenue and earnings per share. The market was waiting for permission to believe in Cisco's growth story, which is now centered around AI infrastructure orders. Management expects to take AI infrastructure orders of approximately $9 billion from hyperscalers in fiscal year 2026.
This forecast is backed by tangible victories, including five new design wins with hyperscalers in Q3. The company is winning business for its custom silicon and optics, like its Silicon One systems and market-leading Acacia Optics. This success gives Cisco 'a lot more control over the supply chain', a massive advantage when competitors are scrambling for parts.
The growth story also extends to Cisco's core business, with product orders up 19% year-over-year. Management believes companies are being forced to upgrade their own campus networks to handle the demands of AI, kicking off what they see as a 'multiyear, multibillion-dollar campus refresh opportunity.' This suggests a powerful combination: two growth engines firing at once.