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Cisco CEO highlights AI demand driving a networking supercycle as stock rises 14%
May 14, 2026
AI Summary
Cisco's CEO Chuck Robbins announced that strong demand for AI tools is leading the company into a 'networking supercycle.' Following a positive earnings report, Cisco's stock surged 14%, prompting a workforce reduction of about 5% to focus on AI and related technologies.
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- Cisco CEO Chuck Robbins stated that the demand for AI tools is propelling the industry into a 'networking supercycle.'
- The company's shares increased by 14%, marking their best performance in over 20 years, after exceeding AI infrastructure and hyperscaler guidance orders.
- Cisco raised its fiscal year forecast from $5 billion to $9 billion due to strong AI demand.
- The company plans to reduce its workforce by approximately 5% to reallocate resources towards AI-focused segments, silicon, and optics.
- Robbins noted that the fast-paced AI market complicates forward bookings projections, leading Cisco to opt out of some projects with hyperscalers.
- Cisco is involved in Anthropic's Project Glasswing, which allows select businesses to test AI models and their cybersecurity implications.
- Concerns over potential risks associated with AI models have prompted businesses to accelerate security upgrades.
ciscoai demandstock marketinfrastructurehyperscaler