Gotrade News - Cisco shares jumped 16.5% pre-market after record quarterly results and a sharp lift to its AI order outlook. The rally extended as Cerebras Systems priced the largest dedicated AI IPO ever at a $56.43 billion fully-diluted valuation.
The twin catalysts reinforced investor appetite for AI infrastructure exposure beyond the megacap GPU names. Broad index futures advanced, with the Nasdaq 100 E-Mini ticking higher into the open.
Key Takeaways
- Cisco posted record revenue of $15.84 billion and raised full-year AI orders to $9 billion.
- Cerebras priced a $5.55 billion upsized IPO at a $56.43 billion valuation on Nasdaq.
- Nasdaq 100 futures rose as Nvidia gained 2% on H200 chip approval for China.
Cisco Earnings Reset AI Infrastructure Narrative
According to Investing.com, Cisco Systems (CSCO) reported record quarterly revenue of $15.84 billion and adjusted earnings per share of $1.06. The networking giant guided fourth-quarter revenue to $16.7 billion to $16.9 billion, roughly $900 million above consensus.
Cisco lifted its full-year AI orders target to $9 billion from a prior $5 billion baseline. Year-to-date AI infrastructure orders have already reached $5.3 billion across enterprise and hyperscale customers.
Third-quarter hyperscaler AI orders climbed to $1.9 billion, up from $600 million in the year-ago period. Chief Financial Officer Mark Patterson said it is "probably reasonable to expect" at least $6 billion in AI hyperscale revenue during fiscal 2027.
Chief Executive Chuck Robbins framed the strategy bluntly in the earnings call. "Companies that will win in the AI era will be those with focus, urgency, and discipline to continuously shift investment toward areas where demand and long-term value creation are strongest," he said.
The company also disclosed a restructuring carrying roughly $1 billion in pre-tax charges. As reported by Investing.com, the plan eliminates about 4,000 positions while redirecting capital toward silicon optics, AI, and cybersecurity.
Cerebras Debut Tests AI IPO Appetite
Per Investing.com, Cerebras Systems priced its upsized initial public offering at a $56.43 billion fully-diluted valuation. The company raised $5.55 billion on the Nasdaq Global Select Market, with shares scheduled to begin trading May 14, 2026.
The listing ranks as the largest United States technology IPO since Arm in 2023. Order books were more than 20 times oversubscribed relative to available shares, signaling intense institutional demand.
Cerebras designs wafer-scale processors that pack hundreds of thousands of compute cores onto a single chip. The architecture positions it as a direct alternative to GPU clusters built around NVIDIA (NVDA) accelerators.
The company derived more than 85% of 2024 revenue from UAE-based G42. It has since added Amazon.com (AMZN) and OpenAI as customers, broadening its commercial base ahead of listing.
Matt Kennedy of Renaissance Capital said the debut carries signaling value for the pipeline. "If Cerebras trades well, it will reinforce the idea that there's strong demand for high-potential AI names," he said.
According to Barchart, June S&P 500 E-Mini futures rose 0.27% while Nasdaq 100 E-Mini futures added 0.24% pre-open. Cisco traded 17% higher in pre-market, and Nvidia gained 2% on H200 chip approval for Chinese sales.
The 10-Year Treasury yield slipped 20 basis points to 4.46%, easing pressure on long-duration growth multiples. Fed funds futures imply a 98.6% probability that the Federal Reserve holds rates steady at the June FOMC meeting.
