Is Cisco Systems (CSCO) One of the Best AI Data Center Stocks to Buy Right Now?

We just covered the 12 Best AI Data Center Stocks to Buy Right Now and Cisco Systems, Inc. (NASDAQ:CSCO) ranks 7th on this list.

Cisco Systems, Inc. (NASDAQ:CSCO) is being treated as a value AI play in the hedge fund universe. The firm is pivoting from a hardware provider to an AI-native security and networking powerhouse. Cisco’s rapid acceleration in AI networking orders from major cloud providers like Amazon, Microsoft, and Google has grabbed headlines. In fiscal Q2 2026, the firm reported $2.1 billion in AI infrastructure orders, a massive jump from $1.3 billion the previous quarter. Management has projected over $3 billion in AI infrastructure revenue for the full fiscal year. Investors view this as proof that Cisco’s Silicon One chips are successfully competing with specialized rivals for the digital backbone of AI data centers.

READ ALSOD. E. Shaw Stock Portfolio: Top 10 Stocks to Buy.

Cisco Systems, Inc. (NASDAQ:CSCO) shift toward high-margin software also merits a closer look. By integrating Splunk, the firm has created a unified view of networking and security that is unique in the market. Hedge funds are also positioning for a multi-year hardware upgrade cycle driven by new standards. Enterprises are beginning a massive refresh to support the high-bandwidth needs of AI. Cisco expects this to be a multi-billion dollar refresh opportunity as support for older 4K and 6K switches ends. Networking product orders grew in the high teens for the company recently, marking five consecutive quarters of double-digit growth. For many, Cisco has become a value tech staple as the stock often trades at a forward P/E of roughly 16x–18x, ideal for funds that want AI exposure without the risk of a bubble burst.

While we acknowledge the risk and potential of CSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Israel Englander Stock Portfolio: Top 10 Stock Picks and Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.

Disclosure: None. Follow Insider Monkey on Google News.