Cisco Stock Surges on AI Infrastructure Orders

Cisco Systems (CSCO) stock has surged 62% over the past year, but at 31.8 times its past year's earnings, it appears to assume growth that hasn't happened yet.

The surprise could come from AI infrastructure for hyperscalers, which Cisco sells to the largest cloud companies. In fiscal 2026, the company took $9.3 billion in orders, exceeding its expected revenue of $7.5 billion in fiscal 2027.

Cisco's management expects multiple AI design wins over the next six months, and more wins could indicate growing demand for their gear in AI systems.