After over two decades, Cisco Systems (CSCO) shares are trading back to where they were. The networking firm, which pays shareholders a dividend that yields over 2%, jumped last week.
Cisco (CSCO) grew its revenue by 7.5% Y/Y to $14.88 billion. Networking product orders grew in the double-digit percentage for five straight quarters. Its core customers added $1.3 billion in new orders. CEO Charles Robbins said on the conference call that the firm expects at least double the orders that it received this fiscal year from the same set of customers. Use cases are expanding, which would increase the order growth rate.
In enterprise, Neocloud and sovereign cloud are tailwinds. Revenue would exceed $2 billion this year.
In the investment holding company space, Japan’s SoftBank (SFTBY) is sharply below its $90.00 52-week high. The stock closed at $63.85 last week on reports that it sold a winning position, Nvidia (NVDA). That raised $5.83 billion but created questions about its AI investment strategy.
SoftBank plans to fund an aggressive $22.5 billion follow-on in OpenAI. It invested $6.5 billion in Ampere, a chip maker, and $5.4 billion in ABB (ABBNY). The firm also considered buying out Marvell Technology (MRVL).
None of those three firms may have as attractive a growth rate as Nvidia. In the last quarter, the firm also held 86.96 million shares of Intel (INTC).
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