Matt Frankel

It's as much about the orders it now has on its books that will be recognized in the future periods and the anticipated acceleration in that number over time.

Getting back to the question that our listener

Yeah, I mean, well, Cisco is at an all-time high after this earnings report.

It's nearly doubled over the past year.

The AI business has nearly doubled their expectations as well.

So I would argue that not only is it a move that's justified, but this is kind of a fundamentally different time.

This isn't just cyclicality right now.

I don't think we've seen an AI cycle over the past couple of decades.

This is something that's new.

It's something that wasn't really a big market opportunity.

No one was talking about AI infrastructure a few years ago.

So shares trade for about 26 times forward earnings right now.

There's a solid case to be made that revenue growth will accelerate in the 2027 fiscal year, which starts very soon.

I'd actually be comfortable opening a small position in Cisco at this level, even at an all-time high, and then adding incrementally.

That's just kind of my take on it.

Yeah, so Lumentum has been around for a long time.

It produces optical components for things like 3D mapping, for high-speed communications, think fiber optics.

For the longest time, this was a company that got most of its business from the rollout of 5G technology and telecommunications and things like that.

But the key thing to know now is that the components Lumentum makes are extremely valuable parts of data center infrastructure, specifically when it comes to interconnections and other forms of AI infrastructure.

And that's what's really driving the business today.