Cisco CEO Optimistic on US-China Relations, Priorities Tax Cuts and AI Infrastructure
Davos, Switzerland - Cisco CEO Chuck Robbins believes improved relations between the US and China would positively impact businesses globally. He stated that the Trump administration has made efforts to facilitate dialogue on resolving trade disputes.
Robbins, who serves as chair of the influential Business Roundtable, advocates for consensus on trade policies among CEOs to present to the administration. Cisco has been present in China since 1994, with operations in 16 cities.
Despite falling revenue in China, Robbins downplays its impact on Cisco's overall performance. He emphasizes his focus on extending expiring Trump-era tax cuts for businesses and households.
Cisco's stock performance has improved in recent months, outpacing the S&P 500's advance. The company's optimism stems from strong quarterly earnings, acquisitions, and expectations for a role in developing AI infrastructure.
Analysts see potential for further gains in Cisco's stock due to its early-stage recovery in enterprise networking demand. JPMorgan analyst Samik Chatterjee rates Cisco shares as Outperform.
Robbins highlights the importance of investing in AI infrastructure, drawing parallels to Cisco's key role in establishing the internet in the past.
Additional Insights from the World Economic Forum in Davos, Switzerland:
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* A trade war with China is anticipated as Trump takes office, according to Bremmer.
* Bank of America CEO suggests the Federal Reserve may need to address Trump's policies.
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