AI Buildout Fuels Record Results for These Companies

Yahoo Finance · 2026-05-26

AI Buildout Fuels Record Results for These Companies Derek Lewis Tue, May 26, 2026 at 4:54 PM CDT 2 min read CSCO ^GSPC NVDA The 2026 Q1 earnings cycle is essentially over, though there is a handful of S&P 500 companies yet to report. The AI frenzy has continued to dominate sentiment throughout the period, with favorable demand trends surrounding the buildout leading to record results from several companies, including Cisco Systems CSCO and NVIDIA NVDA. Cisco is positioned to provide critical AI infrastructure with an industry-leading networking portfolio, AI-native security solutions, and operating systems. Sales of $15.8 billion set a record for the company and exceeded the high end of its prior guidance. The company noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the buildout. Favorable EPS revisions for its current and next fiscal year have helped land it into a Zacks Rank #2 (Buy). NVIDIA again posted robust growth in its latest release, with adjusted EPS of $1.87 more than doubling year-over-year alongside record sales of $81.6 billion that grew 85% from the year-ago period. As expected, Data Center results throughout the period showed that everybody still wants their hands on the magical GPUs. Data Center sales of $75.2 billion again reflected a record, up 92% year-over-year. Near-term EPS revisions continue to show bullishness thanks to the favorable environment, a trend that the company has enjoyed for quite a while now. While shares have slowed a bit relative to what we’ve seen over recent years, the reality remains that the company’s outlook remains robust. Both companies above – Cisco Systems CSCO and NVIDIA NVDA – delivered robust earnings releases this cycle, delivering record results thanks to favorable trends stemming from the AI buildout. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com).

AI 시장 분석

The ongoing AI buildout has led to record results for key technology companies like NVIDIA and Cisco Systems. This indicates an explosive demand for GPUs and networking equipment essential for AI infrastructure. It signals strong growth across AI-related technology sectors.

상승 영향

AI — Increased overall investment and demand for AI technology are driving record results for key players, solidifying the continuous growth of the AI industry.
Semiconductors — NVIDIA's strong GPU sales prove robust demand for high-performance semiconductors essential for AI computation, boosting growth for related companies.
Network Infrastructure — Cisco's 40% increase in data center switching orders indicates a surge in demand for networking equipment and infrastructure due to increased AI data traffic.
Data Centers — The rising demand for GPUs and networking equipment for AI buildout accelerates data center expansion and upgrades, driving growth in the related market.
Cybersecurity — Cisco's mention of AI-native security solutions suggests increasing demand for advanced security technologies to protect AI infrastructure and data, benefiting this market.

AI가 생성한 분석으로 투자 자문이 아닙니다.

DYAX Investor Sentiment

Bullish (Long) 54% · Bearish (Short) 46%

243 participants

Related News

원문 보기 — Yahoo Finance