Cisco and NVIDIA post record earnings as AI infrastructure buildout drives demand

Cisco reported sales of $15.8 billion, a company record, with product orders growing 35% year-over-year and data center switching orders up 40% year-over-year. NVIDIA posted adjusted EPS of $1.87, more than doubling year-over-year, with record sales of $81.6 billion up 85% year-over-year and Data Center sales of $75.2 billion up 92% year-over-year.

Cisco is providing AI infrastructure through networking technology, AI-native security solutions (security designed for AI environments), and operating systems. NVIDIA's strength centers on GPU (graphics processing units used for AI computation) demand tied to the AI buildout.

Both companies achieved Zacks Investment Research rank improvements and favorable earnings revisions tied to sustained demand from the AI infrastructure expansion. Cisco holds a Zacks Rank #2 (Buy).