GoKawiilCisco CEO Chuck Robbins told CNBC on Thursday that skyrocketing demand for artificial intelligence tools and equipment is powering the industry toward a "networking supercycle."
Shares jumped 13% for their best day since 2011 after Cisco blew past its AI infrastructure and hyperscaler guidance orders for the fiscal year and lifted its forecast from $5 billion to $9 billion.
The California-based networking equipment maker also said it will cut about 5% of its workforce as it shifts focus toward AI-focused segments, silicon, and optics.
"Given the speed at which the market is moving, we need to make a rapid reallocation of resources," Robbins told CNBC. "By the way, a lot of the people that are potentially impacted will actually go take those jobs."
Cisco has lagged its hyperscaler peers in the AI race being led by Nvidia . But the company recently surpassed its internet boom highs as investors bet on its networking infrastructure needed to run data centers, and the AI trade broadens.