Nomura Value Fund on Cisco Systems, Inc.
Thesis
Cisco is benefiting from accelerating orders for AI networking equipment as hyperscalers continue to invest heavily in AI infrastructure. The company also has a second growth driver in a multi-year campus networking refresh cycle that remains in its early stages. Strong quarterly revenue and earnings growth, together with raised guidance, support the fund's positive view.
“The company is seeing a significant acceleration in order growth for AI networking gear and appears to be a major beneficiary of hyperscaler AI spending.”