Cisco CEO on latest quarter: AI demand from hyperscalers is accelerating

Core Insights - Cisco reported a strong quarter with significant growth driven by AI infrastructure orders, achieving $1.3 billion in AI orders from hyperscalers, which is expected to double compared to the previous fiscal year [3][4] - The company experienced a broad uptake in its campus refresh initiatives and strong performance across various geographical regions, technology areas, and customer segments [4] - Cisco's partnership with Nvidia has been fruitful, with plans to develop an Ethernet switch utilizing Nvidia's silicon, indicating a commitment to expanding its ecosystem partnerships [9][10] Financial Performance - Cisco's revenue from AI infrastructure orders reached $1.3 billion, a substantial increase from just over $2 billion in total AI orders last fiscal year, indicating a robust demand in the hyperscaler segment [3] - The company acknowledged challenges in its security division but noted strong demand for new firewall products and a positive outlook for future growth [6][7][8] Market Position and Strategy - Cisco's CEO emphasized that the current spending environment is driven by companies with strong balance sheets and profitability, contrasting it with the dot-com bubble era [12][13] - The company is focused on expanding its presence in the AI infrastructure space and is optimistic about the long-term potential of AI technologies, suggesting that the market is still in its early stages [14][20] - Cisco is actively engaging with various cloud providers, including partnerships with Middle Eastern sovereign clouds, to enhance its market position [10]