Cisco Systems Seen as Undervalued Amid AI Demand Surge

Cisco Systems (CSCO) is gaining attention after its executives discussed an AI-driven surge in networking and security demand. This growth is anchored by hyperscaler orders of $9.3 billion over the last fiscal year, which management now refers to as a multi-year growth cycle.

The expansion goes beyond large cloud buyers into campus and branch networking, where Cisco Systems saw roughly 20% growth in recent activity. Despite a recent pullback with the share price down about 10.1% over the past month, momentum over longer periods remains strong.

The year-to-date share price return is 43.57%, with total shareholder returns of 65.47% over one year and more than doubling over three and five years. This points to investors steadily repricing Cisco's AI and networking story rather than reacting only to short bursts of news.