Cisco Systems (CSCO) shares closed at $69.52, near the 52-week high of $72.55, driven by aggressive AI push and security dominance. AI infrastructure orders hit $2 billion in fiscal 2025, doubling expectations. Networking revenues declined 3% in the same period. YTD, CSCO shares have appreciated 17.4%, underperforming sector peers.

Despite trading at a premium, CSCO is at a discount compared to Arista Networks and Broadcom. The forward 12-month price/sales ratio is 4.57X for CSCO, higher than the industry average. Cisco’s expanded portfolio, including AI initiatives with NVIDIA, bodes well for future growth.

For fiscal 2026, Cisco expects revenues of $59-$60 billion and non-GAAP earnings of $4-$4.06 per share. Analysts estimate revenue growth of 5.2% and earnings growth of 6% for 2026. With an expanding portfolio, CSCO is well-positioned for long-term growth, making it a buy with a Zacks Rank #2.

The second wave of the AI explosion is set to bring significant wealth and revolutionize industries. Zacks’ AI Boom 2.0 report highlights 4 under-the-radar companies poised to benefit. Investors can access the report for free to capitalize on the next wave of AI innovation.

Read more at Nasdaq: Cisco Trades Near 52-Week High: Is the CSCO Stock Still a Buy?