Cisco's AI Growth Accelerates to 18% Amid Price War Fears

Cisco Systems Inc.'s (NASDAQ:CSCO) growth has accelerated to 18% in quarterly revenue, reaching $17.3 billion, according to investor-relations chief Sam Badri. This surge is largely attributed to the artificial intelligence (AI) boom, which Eisman believes is 'for real.'

Badri pointed out that Cisco's hyperscaler business is on track to nearly double in fiscal 2027, with orders totaling $9.3 billion this year alone. However, Badri emphasized that most users have only just begun using AI tools and are still in the beginner stage, with less than 10% having progressed to customized workflows or AI agents.

While Eisman agrees that demand for AI is real, he warns of a potential price war between OpenAI, Anthropic, and Chinese models. He notes that lower prices may squeeze model-provider margins while driving more token consumption.