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How Cisco Systems (CSCO) Supports Shareholder Returns Through Innovation and Networking Solutions

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 11 Best Telecom Dividend Stocks to Buy for 2025.

Photo by Jp Valery on Unsplash

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading provider of networking, security, software, and cloud solutions, best known for its Internet Protocol-based routers and switches that enable data to move across networks. The stock has surged by nearly 14% since the start of 2025.

Artificial intelligence has become a major growth driver for Cisco Systems, Inc. (NASDAQ:CSCO). In 2024, the company generated over $1 billion in AI-related revenue and is aiming to at least double that figure in 2025. A key part of this expansion was its $28 billion acquisition of Splunk, completed last year, which strengthens Cisco’s ability to support customers in enhancing their networking, security, and AI capabilities.

Cisco Systems, Inc. (NASDAQ:CSCO)’s dividend growth makes it an appealing option for income investors. The company’s dividend growth streak spans 18 years, and the company currently offers a quarterly dividend of $0.41 per share. The stock has a dividend yield of 2.44%, as recorded on September 24.

While we acknowledge the potential of CSCO as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best Bank Dividend Stocks to Buy  and 12 Best Stocks to Buy Now for Passive Income.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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