Cisco Systems shares surged after the company announced an artificial intelligence orders forecast of $9 billion [1].
The rally signals a critical shift for the networking giant as it attempts to monetize the AI infrastructure boom. Investors are reacting to the company's ability to convert AI interest into tangible orders, moving beyond the speculative phase of the current tech cycle.
Following the Q3 2026 earnings release on May 14 and 15, the company's stock jumped in after-hours trading [2]. Reports on the magnitude of the surge vary between 17 percent [1] and 19 percent [3]. This represents the most significant stock rally for the company since 2002 [3].
Cisco reported quarterly revenue of $15 billion [1]. The growth is primarily driven by strong demand for AI infrastructure, which led the company to double its AI order target [3]. This surge in demand reflects a broader industry trend where enterprises are upgrading hardware to support large-scale AI deployments.
Despite the financial optimism and the stock price jump, the company is simultaneously restructuring its workforce. Cisco said it will fire 4,000 employees [4]. The move suggests a strategic pivot toward AI-centric operations, even as the company scales its infrastructure business.
The company's performance was tracked on the NASDAQ exchange and across broader U.S. equity markets [2]. The forecast indicates that Cisco is positioning itself as a primary provider of the hardware necessary to run generative AI models at scale.
“Cisco announced an AI orders forecast of $9 billion”
Cisco's pivot highlights a transition in the AI market from software-led hype to hardware-led implementation. By securing billions in infrastructure orders while simultaneously cutting thousands of roles, the company is aggressively swapping legacy operational costs for high-growth AI capabilities to maintain its dominance in enterprise networking.
