Jon Quast

Yeah, it's so surprising to be talking about Cisco, one of the poster children of the dot-com bubble over 20 years ago, but really the business is booming unlike ever before.

You look at the most recent quarter, 12% top-line growth.

Really, all of the growth is coming from one part of the business.

Cisco has various components, but there's one part of the business that's driving everything, and that is networking.

So the company reported 25% year-over-year growth in the networking side of the business.

Everything else is either down or basically flat.

Essentially what is happening here, as the AI infrastructure build out marches on, all of these GPUs, the clusters, even the data centers themselves need to be connected.

And this really plays to Cisco's strengths.

It's getting a ton of demand.

in particular from the hyperscaler businesses.

And so you think of the public cloud giants, the tech giants, the magnificent seven.

These are the companies that are needing network solutions, such as the ones that Cisco provides.

And what is fascinating here, when you look at the orders to the hyperscalers last fiscal year, about 2 billion total for Cisco.

Going into this fiscal year, it was expecting 5 billion total.

And so that was quite ambitious of a projection, more than doubling year over year.

But we're three quarters into its fiscal year now.

We're already surpassed that projection.

And now management is saying, we're expecting 9 billion of orders.

in this fiscal year from the hyperscalers so incredible year-over-year growth there and it's not just hyperscalers it's also the neocloud businesses we just got report from nebius today signed a 27 billion dollar deal with meta i mean its business is growing like crazy it needs networking solutions as well but all in all good quarter for cisco

For me, Cisco just kind of bores me.