TLDR
- Cisco shares closed at $80.25 Wednesday, eclipsing the $80.06 record from March 27, 2000
- Stock has jumped 36% in 2025, marking the strongest yearly gain since 2009
- Company secured $1.3 billion in AI infrastructure orders from major web companies
- Trades at 19 times forward earnings compared to 96.7 times in late 1999
- Revenue grew 7.5% year over year to nearly $15 billion
Cisco stock made history Wednesday by closing at a new record high. The achievement comes 25 years after its dot-com era peak.
Shares rose to $80.25, breaking the previous record of $80.06 set on March 27, 2000. That marked the day Cisco briefly overtook Microsoft as the world’s most valuable company.
The stock has climbed 36% this year. This is the best performance through mid-December since 2009, according to market data.
Twenty-five years ago, Cisco sat at the center of the internet revolution. Businesses going online depended on its routers and switches to build their networks.
The dot-com bubble popped shortly after Cisco peaked. By October 2002, the Nasdaq had shed more than 75% of its value.
Building Beyond Hardware
Cisco survived where countless internet companies failed. The networking giant rebuilt through acquisitions and diversification.
The company bought set-top box maker Scientific-Atlanta in 2006. Software acquisitions followed, including Webex, AppDynamics, Duo and Splunk.
These moves helped Cisco expand beyond its hardware roots. The strategy kept the company relevant through changing tech cycles.
Its market cap now reaches $317 billion. That ranks 13th among U.S. technology companies.
A More Rational Market
The contrast between now and then is stark. Cisco traded at 96.7 times forward earnings in late 1999.
Other tech darlings showed similar excess. Oracle hit 92.1 times forward earnings. eBay traded at an eye-popping 351.7 times.
Today, Cisco trades at 19 times expected earnings. The difference is night and day.
Some market watchers fear an AI bubble is forming. But valuations remain far more grounded than the dot-com days.
Capturing AI Spending
Cisco hasn’t dominated the AI boom like some peers. Nvidia leads with its chips that power AI model training and deployment.
Nvidia’s market cap stands at $4.5 trillion. That’s roughly 14 times larger than Cisco’s current valuation.
But Cisco is carving out its niche in the AI ecosystem. CEO Chuck Robbins highlighted $1.3 billion in AI infrastructure orders during November.
These orders came from large web companies building out their AI capabilities. The networking segment that serves AI data centers shows solid momentum.
Revenue approached $15 billion in the latest quarter. That represents 7.5% growth year over year.
The growth rate is modest compared to 66% in 2000. But it reflects sustainable expansion rather than bubble-era excess.
Cisco’s gear powers the data centers that tech companies need for AI. Enterprise customers continue ordering equipment for their AI infrastructure projects.
The stock has outpaced the Nasdaq in 2025. The index gained 22% while Cisco added 36%.
Demand for networking equipment in AI data centers keeps climbing. Major web companies placed $1.3 billion in infrastructure orders with Cisco in the most recent quarter.
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