Stock Market Today, May 14: Cisco Systems Surges After Blowout Earnings and Raised Guidance

Cisco Systems (NASDAQ:CSCO), a networking and communication technology solutions provider, closed Thursday at $115.53, up 13.41%. The stock is rallying after a blowout fiscal Q3 report, raised guidance, and AI‑driven orders. Investors are watching how sustained AI infrastructure demand supports future growth and margins.
Trading volume reached 68.4 million shares, coming in about 189% higher than its three-month average of 23.7 million shares. Cisco Systems IPO'd in 1990 and has grown 149,438% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) added 0.77% to finish Thursday at 7,501, while the Nasdaq Composite (NASDAQINDEX:^IXIC) advanced 0.88% to close at 26,635. Within communication equipment, peer Arista Networks (NYSE:ANET) closed at $147.78, rising 5.04% as networking names react to stronger AI and data center spending signals.

What this means for investors

Cisco reported record revenue in its fiscal Q3 results last night, and investors see more to come. AI-related orders surged helping to support the AI networking narrative that has helped drive Cisco stock up 40% in the last month alone.

Cisco said it has received $5.3 billion in AI-related orders year to date to help large tech companies connect and secure AI infrastructure at data centers. Management is also restructuring to direct more spending toward high growth segments like AI. It will reduce its workforce by about 4,000 jobs, or about 5% of its staff, in the process.

The report strongly reinforced the AI networking narrative that has investors jumping back into Cisco Systems stock.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks and Cisco Systems. The Motley Fool has a disclosure policy.