

Cisco, a networking and security vendor (CSCO), outlined plans with Nvidia for faster optical connections in AI data centers; shares traded at $103.885, down ap

Both Arista and Cisco just posted record AI-driven results, yet their stocks sold off hard.


Cisco spent years as the networking giant that growth investors ignored, but AI infrastructure spending is rewriting that story fast. Whether the rally has legs or a margin squeeze kills the momentum depends on one critical number.

New research reveals how observability restores financial predictability as enterprises navigate rising telemetry costs and unpredictable AI bills News Summary The global Splunk State of Observability 2026 report reveals agentic AI is creating unpredictable outcomes and costs, leaving observability practices to rein them in. Agent observability is increasingly important, with nearly 9 in 10 respondents saying monitoring AI is a priority, but over half still can't effectively measure agent quality.

Strategist Tom Lee says investors should not shrink from the pullback in stocks surrounding AI investment fears. He points to Cisco's history as one reason to buy.

Cisco's president, Jeetu Patel, said he uses four or five of the most popular personal AI agents. One of them, which costs him $20 a month, recently saved him more than $1,000 in subscription bills.

Cisco Systems, Inc. maintains a constructive setup ahead of Q1, with management guiding for 21% YoY revenue growth and 33% EPS growth. The company consistently beats top- and bottom-line estimates, with recent quarters showing accelerating revenue surprises and resilient profitability despite gross margin pressures. Agentic AI adoption and international infrastructure deals, such as with Bell Canada, are strengthening Cisco's long-term growth prospects.