Cisco's AI Sales Projections Fall Short of Investor Hopes

Cisco Systems Inc has revealed its AI sales projections for this fiscal year, but investors are not impressed. The company's forecast of US$7.5 billion in AI-related revenue is a disappointment to those who had expected a bigger payoff.

The projection represents about 10% of Cisco's total projected revenue for the financial year 2027, which is estimated to be between US$72.2 billion and US$73.4 billion.

Cisco has been experiencing significant growth in AI-related orders, with a total of US$9.3 billion over the past year, including US$4 billion alone in the quarter that ended July 25.

Analysts have questioned Cisco's conservative approach to forecasting AI revenue, with David Vogt from UBS stating that 'That just strikes me as very, very conservative.'