Warren Buffett has liquidated $6.8 billion in stocks.
Bill Gates has sold off 500,000 shares of Microsoft.
And Jeff Bezos filed to sell Amazon shares worth $4.8 billion.
What is going on?
One multi-millionaire believes they are preparing for a catastrophic event…
But not a crash… or a bank run… or even a recession.
He says, we’ve entered something called a “Terrifying Bull Market.”
Jeftovic recently revealed which corner of the market these billionaires are favoring now and how everyday Americans can follow their lead before it's too late.
For his full briefing, click here.
How Cisco Is Building a New Growth Story for Investors
Written by Jeffrey Neal Johnson. Published 8/22/2025.
Key Points
- Surging demand for AI infrastructure validates the company's technology and creates a significant, long-term revenue stream from global customers.
- The successful integration of Splunk accelerates Cisco's strategic shift to a more predictable and high-margin software and recurring revenue business model.
- The company now presents a compelling investment profile that blends direct exposure to the AI revolution with an industry leader's financial stability and reliable income.
Cisco Systems (NASDAQ: CSCO) recently reported strong earnings, sending shares higher. But the biggest news wasn't its fourth-quarter 2025 earnings; it was the company's confident outlook for fiscal 2026.
Management now expects revenue of $59 billion to $60 billion, with non‐GAAP EPS of $4.00 to $4.06.
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That optimism has caught Wall Street's attention and sparked a key question: what fundamental strategy underpins this bullish outlook, and is it sustainable? The answer lies in three distinct growth engines reshaping Cisco's future.
Cisco's AI Bet Pays Off
The biggest catalyst in Cisco's upbeat forecast is its success in the AI infrastructure market. What began as a strategic goal has become a core, proven business. In fiscal 2025, Cisco secured over $2 billion in AI-related orders, doubling its original $1 billion target.
As companies build massive data centers, they need high-performance networking to link thousands of specialized processors. Cisco meets that demand with its 800G Ethernet technology and Nexus switches.
This momentum shows up in the Service Provider and Cloud segment, where product orders jumped 49% year-over-year in the fourth quarter.
Importantly, demand is expanding beyond the cloud giants. Cisco is now a key supplier in two emerging, durable growth areas:
- Sovereign AI: Governments investing billions to build national AI capabilities.
- Neo-Cloud Providers: New entrants offering specialized AI cloud services.
This diversification signals a broad, sustainable demand cycle. For investors, Cisco's validated AI success supports upgraded price targets and is attracting growth-oriented buyers, reshaping the stock's narrative.
Cisco's Key to Higher Margins and Stability
Cisco is shifting toward predictable, high-margin software and services—a transition accelerated by integrating its blockbuster Splunk acquisition.
Today, Cisco boasts $31.1 billion in annual recurring revenue (ARR), and subscriptions make up 54% of total revenue, reducing reliance on cyclical hardware sales.
That partnership is proving effective. During its recent earnings call, management noted a 14% year-over-year increase in new Splunk customers, demonstrating how Cisco's sales engine is expanding Splunk's reach.
Together, Cisco and Splunk offer an integrated platform in two critical IT categories: cybersecurity and observability. As organizations deploy complex AI applications, the ability to secure and monitor them becomes essential.
This integrated model gives Cisco an edge over smaller rivals. A higher mix of software revenue also yields greater financial predictability and supports a stable, growing dividend.
A Foundational Refresh Cycle Provides a Tailwind
Beyond AI and software, Cisco's traditional business is benefiting from a multi-year upgrade cycle in enterprise and campus networking, driven by its new Catalyst 9000 "smart switches."
There are still tens of billions of dollars of pre-Catalyst 9000 systems in customer networks, ready for replacement.
AI deployments demand faster, more powerful, and more secure internal networks, making the Catalyst 9000 refresh cycle a compelling upgrade.
That steady stream of hardware revenue de-risks Cisco's overall growth story, reassuring investors that its core business remains solid.
Growth, Income, Value: The Cisco Trifecta
Together, these three pillars create a compelling investment profile underpinned by a strong financial foundation. Cisco generated $14.2 billion in operating cash flow in fiscal 2025, providing ample capacity for reinvestment and shareholder returns.
- Growth: AI infrastructure and the software transformation drive accelerated revenue and earnings.
- Income: 2.45% dividend yield with a payout ratio of 43.2% of cash flow and 13 consecutive years of increases.
- Value: At a P/E of about 25.6 and a D/E of 0.49, Cisco offers a reasonable entry point compared with high-flying pure-play AI stocks.
Investing in a Tech Titan Reborn
Cisco's validated AI growth engine, successful software pivot, and modernized core business have created a new blueprint for the company.
It now stands out in the tech sector, offering investors direct exposure to the AI revolution alongside the stability and reliable income of an established industry leader.
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