Cisco Systems (CSCO) stock rose 34.6% in the past year, outperforming the Computer & Technology sector and close peers HPE and ANET. Strong AI push and security dominance contributed to this growth, with AI infrastructure orders doubling expectations in fiscal 2025.

Cisco’s expanding AI footprint, with $2 billion in AI infrastructure orders in fiscal 2025, positions the company for continued growth in fiscal 2026. Networking product orders saw high teens growth, benefiting from Silicon One technology and AI-native security solutions.

For fiscal 2026, Cisco expects revenues between $60.2-$61 billion and non-GAAP earnings between $4.08-$4.14 per share. The company’s partnership with NVIDIA is driving enterprise AI orders, with Cisco Secure AI factory offering secure AI-ready data centers.

Despite strong performance, Cisco shares are deemed overvalued with a Value Score of D. The stock’s forward 12-month price/sales ratio is higher than industry peers, making it risky for investors in the near term.

Cisco’s expanding portfolio and AI push position the company for long-term growth, but competition in the networking space and stretched valuation make the stock a hold for now. With a Zacks Rank #3 (Hold), investors may want to wait for a more favorable point to accumulate the stock.

Read more at Nasdaq: Cisco Up 35% in a Year: Is There More Room for the Stock to Rise?