First National Bank of Omaha Invests Big in Cisco Systems Amid AI Boom

First National Bank of Omaha (FNBO) has made a significant investment in Cisco Systems Inc. (CSCO), purchasing approximately $30.3 million worth of shares. According to its most recent disclosure with the SEC, FNBO bought 257,658 shares of CSCO's stock, which comprises about 0.9% of its portfolio and makes it the company's 22nd biggest position.

This investment comes as Cisco Systems continues to experience growth in its AI-infrastructure business, with strong orders in the latest quarter reaching $4 billion. The company has also set a guidance for fiscal 2027 earnings per share (EPS) of $5.05-$5.11 and expects $7.5 billion in AI-infrastructure revenue.

Cisco Systems' growth prospects have been positively affected by its expansion into the AI supply chain, with reports identifying the company among Fabrinet's AI-related customers providing additional support for this opportunity. However, some analysts remain cautious about the sustainability of the company's AI boom due to higher memory costs and a heavier hardware mix pressuring profitability.