Dec. 11 at 1:22 AM
With its gains on Wednesday, Cisco’s market cap sits at
$317 billion, making it only the 13th most valuable U.S. tech company. In recent years, the stock has badly trailed tech’s megacaps, which have been at the center of the new boom surrounding artificial intelligence.
The AI market has reached a level of euphoria that many analysts have compared to the dot-com era. Instead of Cisco, the modern infrastructure winner is Nvidia
, whose AI chips are at the heart of model development and are relied up by the other major tech companies that are all building out AI-focused data centers. Nvidia has a market cap of
$4.5 trillion, roughly 14 times Cisco’s current value.
But Cisco is angling to benefit from the AI craze, with CEO Chuck Robbins in November touting
$1.3 billion in quarterly AI infrastructure orders from large web companies. Total revenue approached
$15 billion, which was up 7.5% year over year, compared with 66% growth in 2000.
$CSCO