We're buying 200 s of Cisco Systems at roughly $67. ing Tuesday's trade, Jim Cramer's Charitable Trust will own 1,200 s of CSCO, increasing its weighting to 2.2% from 1.8%.
Cisco stock, a Dow 30 name, has dropped around 5% since last Wednesday's strong earnings report and upbeat guidance, but we see this pullback as an overreaction and an opportunity to bulk up our position.
Sure, the quarter was not clean, and we've aired some grievances the large security revenue miss. But CEO Chuck Robbins did a great job explaining how the weakness came mostly from the U.S.
federal government, which has experienced severe budget cuts. The rest of world security orders increased by double digits.
Also, two-thirds of Cisco's security portfolio grew above 20%, giving management confidence in its ability to der its long-term target of 15% to 17% growth from its Security and Observability segment.
CSCO YTD mountain Cisco Systems YTD More importantly, Cisco's AI infrastructure has a lot of momentum, and it should carry on for the next few years as AI investment continues at a strong pace.
The company brought in more than $800 million worth of AI infrastructure orders from webscale customers — also known as hyperscale, the big household s names — bringing the fiscal year 2025 total to over $2 billion.
Beyond webscale customers, there should be significant opportunities from neocloud viders — CoreWeave is an example — enterprise AI, and sovereign AI, which refers to nations building out their artificial intelligence capabilities.
(Jim Cramer's Charitable Trust is long CSCO. See here for a full list of the stocks.) As a r to the CNBC with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
If Jim has talked a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
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