Core Viewpoint - Cisco's stock price has risen 0.9% to $80.25, surpassing the record high set on March 27, 2000, which is seen as a sign of restored investor confidence but also highlights the lengthy recovery process from the dot-com bubble [1][4][5] Group 1: Stock Performance and Market Context - Cisco's stock has finally exceeded the peak reached during the internet bubble, marking a significant recovery that took over 25 years [4] - The recent stock increase is attributed to a broader market rebound following the Federal Reserve's third consecutive interest rate cut, with the S&P 500 and Nasdaq 100 indices also showing gains [5] - Cisco's stock has increased over 800% since its low point after the bubble burst, although its market capitalization remains over 40% lower than its peak during the internet bubble [6] Group 2: Revenue Expectations and AI Infrastructure - Cisco's recent surge is driven by strong revenue forecasts, with expected sales of up to $61 billion for the fiscal year ending in July, exceeding Wall Street expectations by approximately $1 billion [7] - The company is positioning itself to benefit from the significant investments in AI infrastructure by global enterprises, which has led to optimistic growth projections [7] - Despite the positive outlook, there are lingering doubts on Wall Street regarding the sustainability of the AI spending boom and concerns about the accounting practices related to it [8]

Core Viewpoint - Cisco's stock price reached a historic high, surpassing the peak from the internet bubble era, reflecting a long recovery process of investor confidence since the bubble burst [1][3]. Group 1: Stock Performance - Cisco's stock rose by 0.9% to $80.25, breaking the previous record high set on March 27, 2000 [1]. - The stock has increased over 800% since its low point in 2002, although its market capitalization is still over 40% lower than its peak during the internet bubble [4]. Group 2: Market Context - The recent surge in Cisco's stock is attributed to a broader market rebound following the Federal Reserve's third consecutive interest rate cut, with the S&P 500 and Nasdaq 100 indices also showing gains [3]. - The optimism surrounding Cisco's revenue forecasts and the anticipated acceleration in AI spending is driving investor interest [3][6]. Group 3: Revenue Expectations - Cisco projected sales of up to $61 billion for the fiscal year ending in July, exceeding Wall Street expectations by approximately $1 billion [6]. - The company is positioning itself to benefit from the significant investments in AI infrastructure by global enterprises [6]. Group 4: Historical Comparison - Cisco was one of the "Nasdaq Four Horsemen" during the late 1990s, alongside Microsoft, Intel, and Dell, attracting substantial investor attention [3]. - The comparison of today's market dynamics with the internet bubble era highlights the long recovery period required for investor confidence to be restored after significant losses [3].

Core Viewpoint - Cisco (CSCO.US) has returned to its historical high after a quarter of a century, driven by the surge in artificial intelligence (AI) spending [1][5]. Group 1: Stock Performance - Cisco's stock rose 0.9% to $80.25, surpassing a peak that had been maintained for over 25 years [1]. - The stock's previous high was seen as the peak of the internet bubble in March 2000, which was a significant milestone for tech stocks [1][4]. - The recent increase in Cisco's stock is part of a broader rise in the U.S. stock market following the Federal Reserve's third consecutive interest rate cut, with the S&P 500 and Nasdaq 100 also experiencing gains [1]. Group 2: Historical Context - Before the record in 2000, Cisco's stock price surged nearly 600% over two years, leading to a market capitalization exceeding $500 billion [4]. - Following the burst of the internet bubble, Cisco's market value plummeted by approximately 90%, reaching a low of around $60 billion by the end of 2002 [4]. Group 3: Current Market Sentiment - Since the low point, Cisco's stock has increased by over 800%, although its market capitalization remains more than 40% lower than its peak during the internet bubble [5]. - The recent stock recovery is viewed as a sign of returning investor confidence, although Cisco is now perceived more as a utility company rather than an innovator [5]. - The latest boost in Cisco's stock is attributed to strong revenue forecasts, which have fueled optimism regarding potential growth from AI spending in the coming years [5][6]. Group 4: Financial Outlook - Cisco anticipates sales could reach up to $61 billion for the current fiscal year, exceeding Wall Street expectations by approximately $1 billion [6]. - UBS analyst David Vogt upgraded Cisco's stock rating to "buy" based on the expected demand for AI infrastructure products [6].