6. Cisco Systems Inc (NASDAQ:CSCO)
Number of Hedge Fund Holders: 77
Past Year Performance: 37.88%
Cisco Systems Inc (NASDAQ:CSCO) is among the best performing cybersecurity stocks in 2025. On March 30, Truist Securities initiated coverage on Cisco Systems Inc (NASDAQ:CSCO) stock with a Buy rating and a price target of $94. Among other factors, Truist cited strength in Cisco’s networking business for its bullish view on the stock.
According to Truist, AI infrastructure investment is driving gains in Cisco’s Core Networking segment. The equity research firm also said Cisco is benefiting from campus product refresh. It sees mid-teens product growth in fiscal 2026 and 2027.
Additionally, Truist pointed out that Cisco has been able to maintain and grow its operating margin even through inflationary pressures. It attributes this achievement to the company’s scale as well as its shift to software and services business.
Nevertheless, Truist noted that Cisco’s security business has been soft. This business represents about 13% of the company’s sales. For fiscal 2026, Truist projects 1% growth in the security business.
On March 23, during the RSA Conference 2026 in San Francisco, Cisco unveiled a list of new security tools aimed at AI agents. These included bringing the Zero Trust Access technology to AI agents. With this, Cisco will provide AI agents with agent discovery capabilities as well as identity and access management.
The company also launched a tool for testing AI models and applications against potential attacks before they’re deployed. Additionally, the company introduced an open-source tool for securing agents that handle security processes and inventory management.
A Cisco survey found that 85% of enterprise customers were experimenting with AI agents. However, only 5% of them had moved these agents into production areas. By offering solutions to secure AI agentic workforce, Cisco hopes to unleash the potential of AI agents.
Cisco Systems Inc (NASDAQ:CSCO) is an American multinational technology company. It develops, manufactures, and sells a variety of hardware and software products. Its tech solutions are focused on areas like networking, cybersecurity, and AI. Cisco is a leading provider of data center switching solutions.
While we acknowledge the potential of CSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has 100x upside potential, check out our report about the cheapest AI stock.
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