(Reuters) -Cisco Systems raised annual revenue forecast on Wednesday, a sign of improving demand as the computer networking equipment maker shifts focus to cybersecurity, cloud systems and AI-driven products.
Companies have ramped up investments in AI technologies which require heavy computing power, creating a spike in demand for data centers, which use Cisco (NASDAQ:)’s products such as ethernet switches and routers.
The company now expects annual revenue to be between $55.3 billion and $56.3 billion, compared with its earlier forecast of between $55.0 billion to $56.2 billion.
Revenue fell 6% to $13.84 billion for the first quarter ended Oct. 26, compared with estimates of $13.77 billion.
