Cisco (CSCO) Stock: Reaches All-Time High After 25 Years on AI Demand

TLDR

• Cisco stock reached $80.25 on Wednesday, breaking its March 2000 record of $80.06
• Shares have gained 36% in 2025, the best performance since 2009
• CEO Chuck Robbins reported $1.3 billion in AI infrastructure orders in November
• Current valuation is 19 times forward earnings versus 96.7 times in 1999
• Market cap stands at $317 billion, ranking 13th among U.S. tech companies

Cisco stock closed at an all-time high on Wednesday after 25 years. The networking equipment company finally surpassed its dot-com bubble peak.

Cisco Systems, Inc., CSCO

Shares climbed 0.9% to $80.25, topping the previous record of $80.06 from March 27, 2000. On that day, Cisco briefly became the world’s most valuable public company.

The stock has surged 36% in 2025. This represents the company’s best year-to-date performance through mid-December since 2009.

In early 2000, Cisco dominated as companies rushed online. Its switches and routers formed the backbone of the internet boom.

But the bubble burst soon after. The Nasdaq lost over three-quarters of its value by October 2002.

Surviving the Crash

Cisco weathered the storm unlike many dot-com casualties. The company expanded through strategic acquisitions over the years.

Major purchases included Scientific-Atlanta in 2006, plus software firms like Webex, AppDynamics, Duo and Splunk. These deals helped diversify the business beyond hardware.

The company now has a market cap of $317 billion. That places it 13th among U.S. tech companies.

Valuations Tell a Different Story

Today’s market looks different from the dot-com era. Cisco traded at 96.7 times forward earnings in late 1999.

Other tech stocks showed similar extremes. Oracle traded at 92.1 times forward earnings while eBay commanded 351.7 times.

Cisco now trades at 19 times expected earnings over the next 12 months. The valuation gap is massive.

Some analysts worry about an AI bubble forming. But current valuations remain far below late 1990s levels.

Chasing AI Infrastructure Revenue

Cisco has lagged the tech megacaps driving the AI boom. Nvidia leads the space with its AI chips powering model development.

Nvidia’s market cap hits $4.5 trillion, roughly 14 times larger than Cisco. But the networking company is finding its place.

CEO Chuck Robbins announced $1.3 billion in AI infrastructure orders from major web companies in November. The networking segment serving AI data centers shows strong growth.

Total revenue reached nearly $15 billion, up 7.5% year over year. That growth rate trails the 66% posted in 2000 but reflects steady expansion.

The company’s equipment powers AI data centers that tech giants are building. Shares have beaten the Nasdaq in 2025, which gained 22% over the same stretch.

Enterprise demand for AI infrastructure continues rising. Cisco’s networking gear plays a key role in these buildouts.

The $1.3 billion in AI infrastructure orders came during the most recent quarter. Large web companies placed these orders as they expand their AI capabilities.

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