Ken Fisher Doubles Down on AI with $3.6 Billion Bet on Cisco and Palo Alto Networks

Ken Fisher, billionaire founder of Fisher Investments and its affiliates, which manage over $441 billion in assets, has made significant investments in two AI stocks. Fisher's investment firm purchased large positions valued at more than $1 billion each in Cisco Systems and Palo Alto Networks during the second quarter of this year.

Fisher points out that despite fears about job displacement due to AI, history shows that innovation creates new opportunities as much as it destroys old ones. He notes that AI often spurs retraining and expanded hiring, rather than mass unemployment. Fisher's investment in these two companies reflects his confidence in their long-term potential.

Cisco Systems is a leader in networking and connectivity, with over 39 million devices connected to its platform. The company has seen steady gains in revenue and earnings over the past several quarters, and its stock is up approximately 48% for the year-to-date. Ken Fisher bought 16,111,142 shares of CSCO during the second quarter, increasing his stake by 94%. He now controls 33,412,725 shares, worth over $3.648 billion.

Palo Alto Networks is a leader in cybersecurity and AI-powered digital security. The company's Precision AI technology underlies its core architecture and has seen significant growth in recent years. Palo Alto Networks generated $3.41 billion in revenue for fiscal Q4, up 34% year-over-year. Analyst Amit Daryanani of Evercore gives Cisco a 'Buy' rating and a price target of $150, implying a one-year upside potential of 37%.