Cisco Hits 52-Week High: Can AI Focus Further Drive the Stock?
Cisco Systems CSCO hit a 52-week high of $67.49 on Wednesday. The stock has rallied 14.7% year over year, indicating strong investor confidence in the company's rising prospects.
Cisco's rally has been supported by solid earnings results, strong gross and operating margin expansion and an upbeat outlook for the coming quarter. This momentum also reflects the company's aggressive push into AI, a consistent rollout of innovative products and overall operational strength.
A major catalyst for Cisco's stock performance is its deepening involvement in AI-focused infrastructure. In its third-quarter fiscal 2025 results, the company announced that AI-related infrastructure orders exceeded $600 million, pushing the year-to-date total beyond $1 billion. These orders are coming from some of the biggest players in cloud computing, including Meta, and reflect a growing demand for AI-optimized networks.
Beyond AI, Cisco is also seeing robust demand across its broader product portfolio. Networking product orders grew double-digits, driven by web-scale infrastructure, enterprise routing, switching and industrial IoT products. The company's innovation pipeline continues to accelerate, with deeper integration of security into its networking products.
Security has become another key pillar of Cisco's strategy. The $28 billion acquisition of Splunk is already paying off, highlighted by a landmark deal with a major financial institution like Nvidia and Microsoft. Cisco also launched new products like Secure Access, XDR and Hypershield, which gained traction by adding over 370 new customers in the third quarter of fiscal 2025.
Networking Rivals Step Up Against Cisco
Juniper Networks JNPR and Arista Networks ANET are intensifying competition in enterprise and cloud networking, challenging Cisco's long-held dominance with AI-driven innovation and infrastructure solutions.
Juniper is unique in its high-performance routing, switching and integrated security, powered by its Junos OS and SDK for automation and extensibility. Juniper's Mist AI and Contrail platforms provide AI-powered, intent-based networking in multi-cloud environments. Competing directly with Cisco, Juniper serves the enterprise, cloud and service provider markets with a strong focus on agile, modular infrastructure and intelligent, scalable network solutions.
Arista leads in AI and cloud networking, supplying high-performance Ethernet switches to hyperscalers like Microsoft and Meta Platforms. Arista's Linux-based EOS software offers advanced programmability and fault isolation, ideal for AI-intensive data centers. Backed by multi-hundred-gigabit innovations, Broadcom partnership and Ultra Ethernet Consortium involvement, Arista is projected to generate more than $750 million in backend AI networking revenues for 2025.
CSCO's Price Performance, Valuation & Estimates
Shares of Cisco have gained 14.7% year to date compared with the Zacks Computer – Networking industry's return of 13.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, CSCO appears overvalued, trading at a forward 12-month price-to-sales ratio of 4.56, higher than the industry's 4.32X. Cisco carries a Value Score of D.
The Zacks Consensus Estimate for CSCO's fiscal 2025 and fiscal 2026 earnings is pegged at $3.79 and $4 per share, implying year-over-year growth of 1.61% and 5.63%, respectively. Earnings estimates for fiscal 2025 and 2026 have been revised upward by 1.6% and 1.3%, respectively, over the past 60 days.
CSCO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Juniper Networks, Inc. (JNPR): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
3 minutes ago
- Globe and Mail
Investors Buy Bitcoin (BTC) ETPs Despite Market Volatility
Cryptocurrency investment products continue to attract investor capital despite ongoing market volatility and a notable drop in the price of Bitcoin (BTC) and Ethereum (ETH). Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ended June 20. Crypto ETPs continue to break inflow records, setting a new historic high at $15.1 billion through the first six months of a year, according to market data. Total assets under management (AUM) in crypto ETPs now stands at $176.3 billion. Despite its price dropping below $100,000 in recent days after the U.S. attacked Iranian nuclear sites, Bitcoin continues to lead ETP inflows. Bitcoin exchange-traded products saw weekly inflows totaling $1.1 billion. Buying on Weakness Analysts say investors appear eager to buy more Bitcoin on any signs of weakness in the price of the largest cryptocurrency by market capitalization. At the same time, Ethereum ETPs recorded their ninth consecutive week of inflows, netting $124 million over the past week. Ethereum exchange-traded products are now on their longest run of inflows since mid-2021. BlackRock (BLK), the largest Bitcoin asset manager globally, continues to see major gains, accumulating more than 3% of the total Bitcoin supply through June 20. Other Bitcoin exchange-traded fund (ETF) issuers, such as ProShares and Bitwise, saw inflows of $77 million and $33 million, respectively in the last week. Bitcoin is currently trading at $101,521. Is BTC a Buy? Most Wall Street firms don't offer ratings or price targets on cryptocurrencies such as Bitcoin, so we'll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 15.61% in the last 12 weeks.
National Post
7 minutes ago
- National Post
VeriSilicon Expands DSP Portfolio with Silicon-Proven ZSP5000 Vision Core Series for Edge Intelligence
Article content SHANGHAI — VeriSilicon ( today released the ZSP5000 Digital Signal Processing (DSP) series IPs, which are based on its fifth-generation silicon-proven DSP architecture. This product line adopts a highly scalable and energy-efficient design, and has been deeply optimized for compute-intensive workloads such as computer vision and embedded AI. Combined with the configurable nature of the architecture, this series of IP can provide excellent solutions with both energy and computing efficiency for various edge devices. Article content The ZSP5000 series IPs include ZSP5000, ZSP5000UL, ZSP5000L, and ZSP5000H, delivering scalable vector processing performance ranging from 32 to 256 8-bit Multiply-Accumulate (MAC) operations per cycle. For even higher performance, VeriSilicon's multi-core ZSP5400H can combine multiple ZSP5000H cores in a multi-cluster architecture to further scale computing capability. Article content The ZSP5000 series features a rich and intuitive instruction set optimized for ease of programming and efficient performance tuning, while its dedicated instructions accelerate common imaging and signal processing tasks such as vector-scalar arithmetic, horizontal reductions, permutations, shifts, table lookups, clamping, and averaging. It integrates the ZTurbo coprocessor interface, allowing customers to easily add custom instructions and hardware accelerators within the same pipeline, and is compatible with the OpenCV Application Programming Interface (API), ensuring seamless integration with the mainstream computer vision frameworks. Additionally, the ZSP5000 series is equipped with a full-featured memory subsystem, a multi-channel 3D DMA engine, and a scalable multicore configuration, supporting flexible deployment for a broad spectrum of applications. Article content The ZSP5000 series IPs are backward compatible with VeriSilicon's scalar ZSPNano series, efficiently handling mixed MCU and DSP workloads. VeriSilicon also offers comprehensive ZView development tools, including an Eclipse-based Integrated Development Environment (IDE), cycle-accurate simulator, optimizing compiler, debugger, and profiling tools, streamlining software development and system integration. Article content 'With the growing adoption of OpenCV and the increasing demand for computer vision workloads alongside NPUs in edge intelligence computing, we are introducing the ZSP5000—our next-generation DSP IP series. It supports the industry-standard OpenCV API, enables streamlined interfacing with NPUs via our FLEXA interface, and integrates built-in audio processing capabilities for multi-modal applications,' said Weijin Dai, Chief Strategy Officer, Executive Vice President, and General Manager of the IP Division at VeriSilicon. 'Energy efficiency is key at the edge, and the ZSP5000 series IPs feature an optimized memory access architecture to minimize processor power consumption. It also features ZTurbo, a custom instruction extension mechanism designed for targeted applications, which enables further power and performance optimization through seamless integration of hardware accelerators. Our leading customers are already leveraging these capabilities to achieve significant advancements in power and performance.' Article content Article content Article content Article content
National Post
7 minutes ago
- National Post
Mars' Pending Acquisition of Kellanova Clears FTC Antitrust Review
Article content MCLEAN, Va. & CHICAGO — Mars, Incorporated, a family-owned, global leader in pet care, snacking and food, and Kellanova (NYSE: K), a leader in global snacking, international cereal and noodles and North America frozen foods, today announced that the U.S. Federal Trade Commission (FTC) has concluded its antitrust review of Mars' pending acquisition of Kellanova. Article content Poul Weihrauch, Article content Article content CEO & Office of the President, Mars, Incorporated, Article content said: 'We are very pleased that the FTC has completed its review of the transaction without the imposition of any condition or requiring any remedy. The transaction has now received all but one of the 28 required regulatory clearances, with only the review by the European Commission outstanding. This brings us one step closer to uniting two iconic businesses with complementary footprints and portfolios, allowing us to deliver more choice and innovation to consumers.' Article content Steve Cahillane, Chairman, President & CEO, Kellanova, Article content said: 'This represents a significant milestone on our path to combine Mars Snacking and Kellanova. We continue to believe this is an exciting opportunity to create a broader, global snacking business that is better positioned to meet evolving consumer needs and preferences.' Article content Based on the current status of the ongoing antitrust review by the European Commission, Mars and Kellanova expect the transaction to close towards the end of 2025, subject to customary closing conditions. The exact timing cannot be predicted with any certainty at this point. Article content About Mars, Incorporated Article content Mars, Incorporated is driven by the belief that the world we want tomorrow starts with how we do business today. As a global, family-owned business, Mars is transforming, innovating, and evolving to make a positive impact on the world. Across our diverse and expanding portfolio of quality snacking, food, and pet care products and services, we employ 150,000+ dedicated Associates. With more than $50 billion in annual sales, we produce some of the world's best-loved brands including Ben's Original ™, CESAR ®, Cocoavia ®, DOVE ®, EXTRA ®, KIND ®, M&M's ®, SNICKERS ®, PEDIGREE ®, ROYAL CANIN ®, and WHISKAS ®. We are creating A Better World for Pets through our global network of pet hospitals and diagnostic services – including AniCura, BANFIELD ™, BLUEPEARL ™, Linnaeus and VCA ™ – using cutting edge technology to develop breakthrough programs in genetic health screening and DNA testing. Article content About Kellanova Article content Kellanova (NYSE: K) is a leader in global snacking, international cereal and noodles, and North America frozen foods with a legacy stretching back more than 100 years. Powered by differentiated brands including Pringles ®, Cheez-It ®, Pop-Tarts ®, Kellogg's Rice Krispies Treats ®, RXBAR ®, Eggo ®, MorningStar Farms ®, Special K ®, Coco Pops ®, and more, Kellanova's vision is to become the world's best-performing snacks-led company, unleashing the full potential of our differentiated brands and our passionate people. Our Net Sales for 2023 were $13 Billion. Article content At Kellanova, our purpose is to create better days and ensure everyone has a seat at the table through our trusted food brands. We are committed to promoting sustainable and equitable food access by tackling the crossroads of hunger, sustainability, wellbeing, and equity, diversity & inclusion. Our goal is to create Better Days for 4 billion people by the end of 2030 (from a 2015 baseline). For more detailed information about our commitments, our approach to achieving these goals, and methodology, please visit our website at Article content Forward-Looking Statements Article content This press release, and any related oral statements, includes statements that constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including statements regarding the pending acquisition (the 'Merger') of Kellanova (the 'Company') by Mars, Incorporated ('Mars'), regulatory approvals, the expected timetable for completing the Merger, the expected benefits and other effects of the Merger, the integration of the companies, the combined business going forward and any other statements regarding the Company's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: the timing to consummate the Merger and the risk that the Merger may not be completed at all or the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the merger agreement; the risk that the conditions to closing of the Merger may not be satisfied or waived; the risk that a governmental or regulatory approval that may be required for the Merger is not obtained or is obtained subject to conditions that are not anticipated; potential litigation relating to, or other unexpected costs resulting from, the Merger; legislative, regulatory, and economic developments; risks that the Merger disrupts the Company's current plans and operations; the risk that certain restrictions during the pendency of the Merger may impact the Company's ability to pursue certain business opportunities or strategic transactions; the diversion of management's time on transaction-related issues; continued availability of capital and financing and rating agency actions; the risk that any announcements relating to the Merger could have adverse effects on the market price of the Company's common stock, credit ratings or operating results; and the risk that the proposed transaction and its announcement could have an adverse effect on the ability to retain and hire key personnel, to retain customers and to maintain relationships with business partners, suppliers and customers. Article content All statements, other than statements of historical fact, should be considered forward-looking statements made in good faith by the Company, as applicable, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this communication, or any other documents, words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'intend,' 'objective,' 'plan,' 'project,' 'seek,' 'strategy,' 'target,' 'will' and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were prepared and are inherently uncertain. Such forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties, as well as other risks and uncertainties that could cause the actual results to differ materially from those expressed in the forward-looking statements, are described in greater detail in the Company's reports filed with the United States Securities and Exchange Commission (the 'SEC'), including the Company's Annual Report on Form 10-K for the year ended December 28, 2024, subsequent Quarterly Reports on Form 10-Q, Current Reports on Forms 8-K and other SEC filings made by the Company. The Company cautions that these risks and factors are not exclusive. Management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels. Forward-looking statements speak only as of the date of this Report, and, except as required by applicable law, the Company does not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made. Article content Article content Article content Article content Contacts Article content Mars Article content FGS Global for Mars Kal Goldberg / Jenny Gore / Kellanova Media Media Hotline, 269-961-3799 Investors John Renwick, CFA 269-961-9050
