8. Cisco Systems Inc. (NASDAQ:CSCO)
Cisco Systems remains one of the foundational companies supporting the global internet infrastructure. During the Morgan Stanley Technology, Media and Telecom Conference, Cisco executives highlighted strong momentum across several parts of the business, particularly in networking equipment, cybersecurity, and artificial intelligence infrastructure.
The company reported an 18 percent increase in product orders during its most recent quarter, driven in large part by demand from hyperscale cloud providers building artificial intelligence data centers. Cisco recorded approximately $2.1 billion in new AI infrastructure orders within a three-month period, matching the company’s total AI-related bookings from the previous year.
That surge reflects the rapid expansion of data center infrastructure required to support generative AI models, machine learning systems, and large-scale cloud computing platforms. Hyperscale technology companies continue to invest billions of dollars into new data centers, and Cisco’s networking hardware plays a crucial role in connecting those systems.
Beyond hardware, Cisco has been steadily transitioning toward a recurring revenue model centered on software and subscription services. More than half of the company’s revenue now comes from software, subscriptions, and support services. This shift has helped Cisco stabilize its earnings while expanding into high-growth segments such as cybersecurity, network automation, and cloud-managed networking platforms.
Cisco’s management also highlighted strong demand across geographic regions, including the Americas, Europe, the Middle East, and Asia-Pacific. Public sector customers and enterprise clients have both increased spending on networking infrastructure and security platforms, reflecting the growing importance of secure digital connectivity in modern business environments.
Looking ahead, Cisco sees a multi-year opportunity emerging from the global campus networking refresh cycle, as corporations upgrade aging infrastructure to support hybrid work environments and AI-driven applications.
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