Morgan Stanley Sees Cisco (CSCO) Benefiting From AI Infrastructure Demand

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

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On December 17, Morgan Stanley lifted its terms people connected Cisco Systems, Inc. (NASDAQ:CSCO) to $91 from $82 and kept an Overweight standing connected the stock. The steadfast said the AI commercialized widened beyond semiconductor stocks successful 2025, giving a boost to infrastructure companies. Optical networking has been a wide beneficiary. The expert expects that inclination to transportation into the archetypal fractional of 2026. However, looking further out, the expert noted that investors volition “need to get much selective for afloat twelvemonth returns fixed multiples.”

Cisco Systems, Inc. (NASDAQ:CSCO)’s long-standing spot successful networking is becoming much applicable successful the property of artificial intelligence, particularly arsenic agentic AI gains traction. Products similar Nexus HyperFabric bring unneurotic Cisco’s networking capabilities with Nvidia’s computing and AI software, allowing companies to physique infrastructure tailored for AI workloads. Cisco is besides pushing into security, describing its Hypershield level arsenic a afloat distributed, AI-native cybersecurity solution.

Those efforts are showing up successful the numbers. Cisco Systems, Inc. (NASDAQ:CSCO) posted 5% year-over-year gross maturation successful fiscal 2025, with income reaching $56.7 cardinal for the twelvemonth ended July 26. Growth picked up successful the archetypal 4th of fiscal 2026, ending October 25, erstwhile gross roseate 8% to $14.9 billion.

Management expects that momentum to continue. For fiscal 2026, Cisco is forecasting gross betwixt $60.2 cardinal and $61 billion.

Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells networking hardware, software, telecommunications equipment, and a scope of exertion services utilized by enterprises, work providers, and governments worldwide.

While we admit the imaginable of CSCO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.