This Stock Is Quietly Becoming an AI Powerhouse in 2026

Cisco Systems, a key player in AI infrastructure, reported $9.3B in orders for 2026 and a $139.67 price target with a 25% upside potential, according to analysts. The company's networking revenue grew by 28% to $9.79B in Q4 2026, with AI orders reaching $4B. CEO Chuck Robbins highlighted the accelerating adoption of agentic AI, fueling a networking super cycle.

Cisco's AI infrastructure revenue was around 2% of total revenue in FY2025 and is expected to reach $7.5B in FY2027. While the consensus target stands at $136.05 with 4 Strong Buys and 13 Buys, the bear case suggests a downside to $115.26. The company's broader product stack, including Silicon One and Acacia optics, sets it apart from competitors like Arista (ANET) and Hewlett Packard Enterprise (HPE).