Cisco Systems (NASDAQ: CSCO) is a long-term play on AI that investors should heed. Its AI abilities aren’t rooted in GPUs, CPUs, and the training of AI but in the long-term application. AI applications, including agents, assistants, voice interfaces, and other generative models, are the next step and will depend on Cisco's internet infrastructure and networking tools.
AI applications will be the largest and fastest-growing segment of AI, which is saying a lot in light of NVIDIA’s (NASDAQ: NVDA) sustained triple-digit growth. Cisco Systems is well-positioned to benefit from the infrastructure growth and support needed to operate AI services, and its business turned a corner in late 2024.
