Cisco To Hit One-Millionth Silicon One Chip Milestone In Q2 Amid AI Boom

Cisco Systems Inc. (NASDAQ:CSCO) is set to ship its one-millionth Silicon One chip next quarter, a milestone fueled by a massive AI boom that saw the company book $1.3 billion in AI infrastructure orders in the first quarter alone.

Check out CSCO’s stock price here.

Cisco Targets $3 Billion In FY26 AI Revenue

The surge in AI-related demand helped Cisco deliver a strong first-quarter earnings beat and raise its full-year forecast, prompting CEO Chuck Robbins to declare the company is on track to deliver the “strongest year yet.”

The $1.3 billion in first-quarter orders from hyperscalers underpins the company’s aggressive forecast. Cisco announced it now expects to recognize roughly $3 billion in AI infrastructure revenue from these major cloud customers in fiscal year 2026.

Pipeline Swells To $2 Billion Beyond Hyperscalers

This momentum is also building beyond its largest customers. Robbins highlighted a separate, growing pipeline “in excess of $2 billion” for its high-performance networking products from sovereign, Neocloud, and enterprise customers.

“We had a solid start to fiscal 2026,” Robbins said on the company’s earnings call. “The widespread demand for our technologies highlights the critical role of secure networking… as customers move quickly to unlock the potential of AI."

See Also: Cisco Rolls Out Splunk AI Upgrades to Boost Security, Cut Downtime, and Improve Business Decisions

Campus Networking ‘Ramping Faster‘ Than Prior Launches

Beyond the data center, Robbins said this AI-driven demand is sparking a “multiyear, multibillion-dollar refresh opportunity” in its core campus networking portfolio.

He noted that according to a Cisco index, “only 1/3 of organizations feel their IT infrastructure can accommodate the needs of their planned AI projects,” creating a massive runway for growth as companies upgrade their core networks.

Cisco Q1 2026 Snapshot

Cisco's strong outlook follows a solid first-quarter performance:

• Revenue: $14.88 billion (beating estimates of $14.77 billion).
• Adjusted EPS: $1.00 per share (beating estimates of 98 cents per share).

Shares of CSCO rose 3.14% to end at $73.96 apiece on Wednesday, and the stock rose 7.46% in after-hours trading. Higher by 25.14% year-to-date, the stock was also up 24.97% over the year.

It maintains a stronger price trend over the short, medium, and long terms, with a moderate quality ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.

Read Next:

• Cisco Beats Q1 Earnings, Driven By ‘Widespread’ Demand — Strong Outlook Sends Shares Higher

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Sergiy Palamarchuk / Shutterstock.com