Cisco projects seven point five billion dollars in artificial intelligence data center revenue

Cisco has forecast $7.5 billion in sales from artificial intelligence data centres by 2027. The American networking company received $9.3 billion in AI infrastructure orders last year, so some investors think the new target is cautious. Chief executive Chuck Robbins said AI demand is creating a "networking supercycle," meaning a long period of unusually strong growth. Network traffic linked to AI is expected to triple within three years. To focus more on AI, Cisco is cutting about 4,000 jobs, roughly 5% of its workforce. The company has also raised its annual sales forecast for large cloud customers from $5 billion to $9 billion. Software revenue grew 11% last quarter, which was much slower than hardware growth.