---
title: "Cisco (CSCO) Looked Like an Old Tech Stock. AI Is Changing the Story"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286795188.md"
description: "Cisco Systems (CSCO) shares have surged after a strong earnings report, indicating a shift towards AI infrastructure. Despite a higher valuation, demand for AI solutions is rising, and margins are stabilizing. The stock is still seen as a Buy, with potential for further gains as the company evolves beyond its traditional networking business."
datetime: "2026-05-18T13:52:38.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286795188.md)
  - [en](https://longbridge.com/en/news/286795188.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286795188.md)
---

# Cisco (CSCO) Looked Like an Old Tech Stock. AI Is Changing the Story

Cisco Systems (CSCO) shares have rallied sharply following the company’s latest earnings report, but I still view the stock as a Buy. Cisco’s Fiscal Q3 provided evidence that its artificial intelligence (AI) infrastructure story is now translating into actual orders, higher guidance, and greater growth visibility. The recent move appears to be more than just a short-term reaction to a strong quarter.

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Cisco’s valuation is no longer as cheap as it was when the company was viewed purely as a mature networking business, and that may be the main risk to consider right now. However, on the other hand, hyperscaler AI infrastructure demand has accelerated significantly; Silicon One and Acacia Optics are gaining traction, and margins are showing signs of stabilization.

Because of this, I believe the global leader in networking and cybersecurity solutions deserves a higher valuation than its historical average. Moreover, even after the post-earnings re-rating, the stock may still have room to move higher. For that reason, I remain bullish on CSCO stock.

### Related Stocks

- [CSCO.US](https://longbridge.com/en/quote/CSCO.US.md)
- [CSCL.US](https://longbridge.com/en/quote/CSCL.US.md)

## Related News & Research

- [CISCO REPORTS THIRD QUARTER EARNINGS | CSCO Stock News](https://longbridge.com/en/news/286309178.md)
- [BUZZ-Street View: Cisco's beat-and-raise quarter pushes all the right buttons](https://longbridge.com/en/news/286389369.md)
- [Cisco Announces Restructuring to Refocus on AI Growth](https://longbridge.com/en/news/286316117.md)
- [Cisco (CSCO) Stock Just Hit a Record High Amid Layoffs Announcement](https://longbridge.com/en/news/286465834.md)
- [Cisco CEO says tech is entering a 'networking supercycle' as stock pops 14% on strong AI demand](https://longbridge.com/en/news/286433582.md)