Cisco (CSCO) chief executive Chuck Robbins says AI has ignited a new supercycle that directly benefits companies operating in the networking hardware space.
In a new CNBC interview, Robbins says the AI-driven expansion of data center infrastructure is creating a networking boom that the industry has not seen before.
“It feels like there’s a bit of a networking super cycle that we’re entering right now. I remember sitting in a boardroom literally probably seven or eight years ago when someone said, are we sure that companies are going to continue to buy Ethernet switch ports? And I think we’ve proven that that’s definitely the case — and lots of them.”
The firm’s latest earnings report shows that Cisco reported record revenue of $15.8 billion for the quarter, up 12% year-over-year, with double-digit growth on both the top and bottom line. Meanwhile, total product orders surged 35% year over year, and 19% even when excluding hyperscalers, while networking product orders alone accelerated to more than 50% year-over-year growth.
Robbins says the company is now riding strong momentum from its Silicon One strategy, which aims to unify networking hardware under a single, highly programmable, and high-performance ASIC architecture to power everything from service provider core networks to AI-driven, web-scale data centers.
“We did have five new design wins in the hyperscalers this quarter. Two were in the optic space, and then three were in the system space. And two of the three in the system space were the routing layer on top of these data center interconnects. And then we have another one that we learned about in the last week or two. So we’ve got a lot of momentum right now.”
Cisco shares are up 13.41% following Thursday’s session, valued at $155.30.
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