I'm old enough to remember a time before everyone was plugged into the Matrix... I mean, the internet. I remember when my parents brought home our first computer and I played my first computer game (though I could never get the floppy disk to run right). There wasn't much else to do with the machine yet, aside from writing and playing Solitaire. Years passed, and life changed big-time. We moved from New York City to the Long Island suburbs. I started taking computer classes in middle school, learning the basics of this new technology. And soon I was putting in CDs of the Encyclopedia Britannica, feeling as if I had access to the world's knowledge at my fingertips. Little did I know the world was going through a wave of innovation thanks to the internet. While I was playing "Math Munchers" on CD-ROM - I can still hear that menu screen music - business owners were quietly building websites and empires that would reshape commerce forever. But here's the crazy part... As companies like Amazon and eBay became the household names of the internet boom, one company was the behind-the-scenes giant making money from every single digital move. That company was Cisco Systems (Nasdaq: CSCO). Every time you visited a website or sent an email back then, your data traveled through networks built with Cisco gear. The company wasn't selling books to consumers. It was selling the routers and switches that made it all possible. It was the perfect "pick and shovel" play during the internet gold rush. And now it's at it again with artificial intelligence. The Same Playbook, Different Era Cisco just reported great third quarter numbers. Revenue hit $14.1 billion, up 11% year over year. More importantly, the company pulled in over $600 million in AI gear orders from big tech companies in just one quarter. That brought its AI revenue to over $1 billion for the first three quarters of fiscal 2025, enabling it to beat its target a full quarter early. The stock has done well, climbing from lows around $36 in 2022 to current levels near $68. But here's what really matters for your money... |
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