tech
February 3, 2026
Cisco has finally surpassed its dotcom bubble high. Is the reinvented stock a buy from here?
Today's Cisco looks little like the hardware-centric growth engine that briefly became the world's most valuable company at the height of the internet mania.
TL;DR
- Cisco's stock has recovered to its March 2000 intraday peak after nearly 26 years.
- The company has shifted its focus towards software, services, and AI, moving beyond its hardware foundation.
- Cisco acquired Splunk for approximately $28 billion to bolster its data monitoring and security analytics capabilities.
- The company is integrating its networking gear into large-scale AI systems, including new Ethernet switches using Nvidia silicon.
- AI-infrastructure orders from hyperscalers reached $1.3 billion, showing significant growth acceleration.
- Some investors consider the stock expensive, pricing in more growth than anticipated, with projected earnings increases of about 8% annually.
- Analysts at UBS are optimistic, viewing Cisco as an 'AI loser' in the market's eyes and projecting significant AI-related order growth.
- Evercore ISI upgraded Cisco to 'outperform,' citing a resurgence in core networking and accelerating AI demand, with a price target of $100.
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