Institutional investors boost Cisco as AI ambitions drive renewed interest

Major institutional investors, including the New Jersey Common Pension Fund D and Norges Bank, have increased their holdings in Cisco amid strong quarterly results and a strategic focus on AI‑oriented technology, signalling a renewed bullish outlook on the networking giant’s growth prospects.

State of New Jersey Common Pension Fund D modestly expanded its holding in Cisco Systems during the third quarter, buying 49,556 shares to reach a 1,392,301-share position valued at about $95.3 million, according to regulatory disclosures. Institutional ownership remains dominant, with roughly three quarters of the company’s stock held by funds and other large investors. (Sources: MarketBeat filings and aggregated SEC data).

A wave of sizeable institutional moves has accompanied that state pension adjustment. Norges Bank made a particularly large second‑quarter purchase of more than 55 million shares, a stake valued at roughly $3.82 billion, while DZ BANK and other major managers markedly increased positions during the same reporting periods, underscoring strong buy‑side interest in the networking group.

Smaller asset managers have also been active. Narwhal Capital Management and Machina Capital S.A.S. reported meaningful portfolio increases in the third quarter, and BNP Paribas recently disclosed a near doubling of its Cisco holdings, signalling broad, cross‑border accumulation from both boutique and large bank‑affiliated investors.

Cisco’s latest reported quarter showed modest upside versus expectations, with earnings per share and revenue ahead of consensus and management raising its outlook, while the board increased the quarterly dividend to $0.42. Those results, together with the firm’s push into AI‑oriented switching silicon, help explain why many funds appear willing to add or initiate positions.

Analyst sentiment has firmed alongside the institutional flows. Sell‑side upgrades and higher price targets have clustered in recent months, leaving the consensus rating in the “moderate buy” category and average target levels materially above the current share price, supporting the idea that several professional investors see further upside if Cisco converts AI demand into sustained margin and revenue gains.

The accumulation by diversified institutional holders adds weight to the case that Cisco has re‑entered many investors’ opportunity sets, but the stock’s outlook will hinge on execution: converting large AI‑infrastructure customer orders into durable margin expansion and free cash flow. Market participants will be watching upcoming results and any further disclosures about capital spending and product adoption before committing additional capital.

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Source: Noah Wire Services