Cisco CEO Chuck Robbins recently joined CNBC's "Squawk on the Street" to discuss the company's robust quarterly performance, highlighting a significant surge in AI infrastructure orders from hyperscalers. The conversation underscored Cisco's strategic positioning to capitalize on the accelerating demand for AI capabilities. Robbins spoke with the program's anchors about the company's record $1.3 billion in AI infrastructure orders, progress on its security portfolio following the Splunk acquisition, and its overall growth outlook.
The interview revealed a clear trend: hyperscale customers are significantly increasing their investment in AI infrastructure, and Cisco is a key beneficiary. This demand is not a fleeting trend, but rather a foundational shift in how large-scale computing is being utilized. Robbins emphasized the strength of Cisco's recent quarter, stating, "The team executed really well. We had a record quarter, we had $1.3 billion in AI infrastructure orders from the hyperscalers." This substantial figure represents a notable increase compared to the previous fiscal year, where Cisco saw just over $2 billion in total AI infrastructure orders.
A core insight from the discussion is Cisco's ability to adapt and deliver the specialized infrastructure required for AI workloads. Robbins elaborated on the company's product strategy, noting, "We're going to do probably double what we did last year with the hyperscalers in AI infrastructure orders." He further explained that Cisco's offerings are designed to meet the demanding requirements of AI, stating, "We saw strong performance across geos, across technology areas, and across customer segments. So it was, it was just a good quarter." This broad-based strength across different market segments indicates a healthy demand for Cisco's networking and infrastructure solutions.
The conversation also touched upon Cisco's strategic acquisition of Splunk, a move aimed at bolstering its security offerings. Robbins acknowledged past challenges, admitting, "We were clearly not happy with where we are in security... but we've made a ton of progress." He highlighted that the integration of Splunk is expected to significantly enhance Cisco's security capabilities, particularly in addressing the evolving threat landscape. The company believes this acquisition will provide a more comprehensive and effective security posture for its clients.
Furthermore, Robbins addressed the broader market sentiment, particularly the debate around hyperscalers potentially reducing spending. He countered this notion by asserting, "The belief that hyperscalers will stop spending is flawed." He explained that Cisco is actively partnering with these hyperscalers, providing the essential infrastructure needed to support their expanding AI initiatives. "We're working with them on many of these neo-cloud, the enterprise space around AI... we saw strong demand in our firewalls, which has been a challenging area for us for years," Robbins stated. This indicates a strategic pivot and renewed focus on areas critical to AI deployment.
