Cisco Systems Rises as Hyperscaler AI Orders Fuel Growth
Hewlett Packard Enterprise (HPE) and Cisco Systems (CSCO) are intensifying their competition for enterprise and data center networking spending as AI accelerates demand for high-performance infrastructure.
HPE strengthened its position with the acquisition of Juniper Networks, while CSCO is benefiting from rising hyperscaler demand, campus networking upgrades, and a broad security portfolio.
CSCO retains a broad networking, security, collaboration, and observability portfolio, giving it exposure to both infrastructure upgrades and recurring software-led opportunities. The company closed fiscal 2026 with networking revenues of $9.79 billion in the fourth quarter, up 28% year over year.
While HPE is benefiting from the Juniper acquisition, strong AI infrastructure demand, and rapid networking growth, CSCO appears to offer a more compelling investment opportunity due to its strong hyperscaler AI orders, accelerating data center networking, campus refresh cycle, and expanding security portfolio. Its operating leverage and robust cash generation further strengthen the investment case.