Cisco SystemsNASDAQ: CSCO

Cisco (CSCO) has been getting a lot of interest from users on Zacks.com recently. As a result, it's important to understand the factors that could affect the stock's future.

SAN JOSE, Calif., Nov. 15, 2024 /PRNewswire/ -- Cisco has announced its involvement in an upcoming event for the financial community.

Cisco Systems, listed on NASDAQ as CSCO, is a smart investment for the long term when it comes to AI. Instead of relying on GPUs, CPUs, and AI training, its strengths lie in the practical use of AI over time. Investors should pay attention to this potential.

Cisco Systems (CSCO) announced better-than-anticipated results for the first quarter of its fiscal year 2025. The company's revenue reached $13.84 billion, exceeding the forecast of $13.77 billion.

Even though Cisco Systems, Inc. experienced a year-over-year revenue drop in the first quarter of fiscal 2025, I am still very optimistic about its stock because of its strong value and growth opportunities in AI and subscription services. The company is undervalued compared to its competitors, with a price-to-earnings ratio of 15.81 for this year, and it offers a solid dividend and share buyback program that benefits shareholders. Cisco's reliable business model and varied revenue sources, including a notable rise in recurring revenue, set it up well for future growth.

Keith Snyder points out that Cisco (CSCO) has some weaknesses in its public sector involvement, but he thinks the management's confidence indicates the company has potential for growth. Meanwhile, William Kerwin believes that a more stable demand in the industry will benefit Cisco in the long run.

Cisco's results for the first quarter of fiscal 2025 show strength despite difficulties in networking sales, with increases in AI, security, and cloud collaborations.

Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS) performed better than analysts from the Bank of England had predicted in the first quarter. The software company reported a revenue decrease of 5.6%, which was an improvement over the expected 6.1% decline.

Since I gave a 'Buy' rating in August 2024, Cisco's stock price has increased by 21%, thanks to its strong focus on AI, cloud, and security markets. Product orders have risen by 20% compared to last year, indicating that the period of reducing inventory is over, and AI orders are expected to hit $1 billion in FY25. Cisco's investments in AI infrastructure and its acquisition of Splunk are likely to boost revenue, with a fair value estimated at $65 per share.