Cisco Systems Inc. reported robust second-quarter results, with revenue climbing 7% to $14.17 billion. The company's profit also saw a significant increase, reaching $3.18 billion, up from $2.43 billion a year prior. This strong performance was largely fueled by high demand from AI hyperscalers and a 7% recovery in its networking hardware business, indicating that Cisco's investments in AI-ready infrastructure are yielding positive returns.
Looking ahead, Cisco projects an upbeat sales forecast for the current quarter, expecting revenue between $15.4 billion and $15.6 billion. However, the company anticipates weaker profitability due to rising memory-chip prices and costs associated with AI-related equipment upgrades. Meanwhile, Camtek secured a substantial $25 million order for its Hawk inspection and metrology systems, specifically for advanced semiconductor packaging in AI applications, bringing recent orders from this customer to $45 million.
In the AI startup space, Runway, a company specializing in AI video generation, successfully closed a Series E funding round, raising $315 million. This investment values the company at $5.3 billion. The funding round was led by General Atlantic, with notable participation from major industry players like NVIDIA and Adobe Ventures, highlighting continued investor confidence in generative AI technologies.
The financial sector is grappling with AI's impact, as wealth management stocks recently dipped due to fears of disruption, exemplified by Altruist's new AI-powered tax planning tool affecting companies like LPL Financial and Charles Schwab. Despite this, analysts from Morgan Stanley, Deutsche Bank, and TD Cowen view the sell-off as an overreaction, seeing AI as a significant opportunity for productivity. Conversely, Macquarie appears to be lagging, reporting only 20 active AI tools in its Commodities and Global Markets group, far fewer than competitors like UBS with 340 live AI use cases.
The broader investment landscape for AI remains dynamic. The Information will host a "Financing the AI Revolution" summit on April 27, 2026, at the New York Stock Exchange, to discuss the trillions of dollars required for AI development, exploring funding beyond traditional venture capital. Furthermore, analysts identify Micron Technology, Nebius, and TSMC as three AI stocks poised for massive growth by 2035, addressing critical memory bottlenecks. ServiceNow, despite a significant stock price drop, is also seen by analysts as having a "tremendous opportunity" with its AI platform.
Key Takeaways
- Cisco's Q2 revenue reached $14.17 billion, with profit at $3.18 billion, driven by AI hyperscaler demand.
- Cisco forecasts strong sales but anticipates weaker profitability due to rising memory-chip prices and AI equipment upgrade costs.
- Camtek secured a $25 million order for its Hawk inspection and metrology systems for advanced AI chip packaging, bringing recent orders from one customer to $45 million.
- Runway, an AI video generation startup, raised $315 million in Series E funding, valuing the company at $5.3 billion.
- NVIDIA and Adobe Ventures participated in Runway's $315 million funding round.
- Wall Street analysts recommend buying wealth management stocks like Charles Schwab and LPL Financial, viewing AI as a productivity opportunity rather than a threat.
- Macquarie lags competitors in AI tool adoption, with only 20 active AI tools compared to UBS's 340 live use cases.
- ServiceNow is viewed by analysts as having a "tremendous opportunity" with its AI platform, despite a recent stock price decline.
- The "Financing the AI Revolution" summit on April 27, 2026, will discuss the trillions of dollars needed for AI development, including non-venture funding.
- Micron Technology, Nebius, and TSMC are highlighted as AI stocks with potential for significant growth by 2035, addressing memory demand.
Cisco Sales Jump 7 Percent Driven by AI Demand
Cisco Systems Inc. announced strong second-quarter results, with revenue increasing by 7% to $14.17 billion. The company's profit rose to $3.18 billion, up from $2.43 billion a year earlier. This growth was mainly due to high demand from AI hyperscalers and a 7% recovery in its networking hardware business. CEO Chuck Robbins stated that investments in AI-ready infrastructure are paying off. Cisco expects continued growth in the future, supported by ongoing AI investments and a stabilizing global economy.
Cisco Forecasts Strong AI Sales Despite Profit Concerns
Cisco Systems Inc. shared an upbeat sales forecast for the current quarter, expecting $15.4 billion to $15.6 billion in revenue. However, the company projects weaker profitability due to rising memory-chip prices and costs for AI-related equipment upgrades. CEO Chuck Robbins stated that Cisco is managing these challenges by raising prices and negotiating with suppliers. In the fiscal second quarter, sales grew 10% to $15.3 billion, with AI infrastructure orders from hyperscalers reaching $2.1 billion. Cisco also boosted its fiscal 2026 sales and earnings forecasts.
Camtek Secures Big AI Chip Packaging Order for Hawk Systems
Camtek received a major $25 million order for its Hawk inspection and metrology systems from a leading integrated device manufacturer. This deal, which brings recent Hawk orders from this customer to $45 million, focuses on advanced semiconductor packaging for AI applications. The Hawk system targets key AI areas like High Bandwidth Memory, chiplets, and hybrid bonding. Camtek's stock has seen strong growth, with shares at $154.0. While this repeat business shows Camtek's deep involvement in AI, the company acknowledges a risk if customer spending or technology choices shift.
The Information Hosts Summit on Financing AI Growth
The Information will host a summit titled "Financing the AI Revolution" on April 27, 2026, at the New York Stock Exchange. The event will explore how the rapid expansion of artificial intelligence is transforming technology and finance. Discussions will cover the trillions of dollars needed for AI development, moving beyond traditional venture funding to include bonds and large-scale debt. The summit will feature leading investors, executives, and infrastructure builders, providing insights into AI investment across energy, technology, and finance.
UK Wealth Managers Face AI Disruption Fears
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Wall Street Says Buy Wealth Stocks Despite AI Fears
Wealth management stocks recently dropped due to new fears about AI disrupting the industry, triggered by Altruist's new AI-powered tax planning tool. Companies like LPL Financial and Charles Schwab saw significant declines. However, analysts from Morgan Stanley, Deutsche Bank, and TD Cowen believe the sell-off is an overreaction. They argue that AI presents a major opportunity for wealth managers to boost productivity and meet growing demand for financial advice. Analysts recommend buying stocks like Schwab and LPL Financial, viewing AI as an evolution rather than a threat to the sector.
Three AI Stocks Poised for Massive Growth by 2035
A recent report highlights three AI stocks that could see significant growth by 2035, potentially turning $1000 into $1 million. Micron Technology, Nebius, and TSMC are identified as companies that could benefit greatly from the surging demand for memory in AI. These companies are positioned to address a critical bottleneck in AI development. The video discussing these stocks was published on February 7, 2026, using stock prices from February 2, 2026.
Macquarie Lags Rivals in Adopting AI Tools
Macquarie's latest quarterly results for October to December 2025 show its Commodities and Global Markets group had higher revenue but also increased operating costs. The Australian bank reported only 20 active AI tools in this group, with 30 more planned. This number is much lower compared to competitors like UBS, which reported 340 live AI use cases. Macquarie's investment bank also plans to invest in accelerating research with advanced AI tools. The report suggests Macquarie might be falling behind in the race to use AI compared to other major banks.
ServiceNow Sees AI as Big Opportunity Not a Threat
ServiceNow's stock price has fallen almost 60% from its peak in January 2025, now trading around $104.00. Despite this drop, an analyst believes that fears about AI negatively impacting ServiceNow are overstated. The analyst sees artificial intelligence as a tremendous opportunity for the ServiceNow AI Platform to grow. The company has strong free cash flow generation and a healthy balance sheet with a net cash position. This perspective suggests that the current dip in stock price could represent a good buying opportunity for investors.
Runway AI Video Startup Raises $315 Million at $5.3 Billion Value
Runway, a startup focused on AI video generation, successfully raised $315 million in Series E funding, valuing the company at $5.3 billion. General Atlantic led the funding round, with participation from major investors like NVIDIA and Adobe Ventures. CEO Crist
Sources
- Cisco Sales Rise as AI Hyperscalers Drive Demand
- Cisco Gives Strong Sales Forecast in Latest Sign of AI Inroads
- Camtek Hawk Order Highlights Growing AI Packaging Role And Concentration Risk
- Financing the AI Revolution
- UK wealth managers slide on AI disruption fears
- Wealth stocks dropped on fears AI is coming for them next. Morgan Stanley and others say buy the dip
- 3 AI Stocks That Could Turn $1000 Into $1 Million by 2035
- The traders at risk of being lapped in the AI race
- ServiceNow: Artificial Intelligence As A Massive Opportunity, Not An Existential Risk
- AI Video Generation Startup Runway Raises $315 Million At $5.3 Billion Valuation
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