Cisco CEO Optimistic on US-China Relations, Advocates for Tax Cut Extensions
In Davos, Switzerland, Cisco CEO Chuck Robbins emphasized the importance of improved relations between the United States and China for global economic growth. Despite ongoing trade issues, Robbins expressed optimism that the Trump administration has initiated discussions to address concerns.
As the chair of the Business Roundtable, Robbins advocates for consensus among CEOs on trade policy to be presented to the administration. Cisco, with a significant presence in China since 1994, has faced competitive pressures in the region. However, Robbins emphasizes the company's focus on tax cut extensions for businesses and households.
Despite a lack of attention to potential trade war impacts, Cisco's stock has risen approximately 9% in the past three months, outperforming the S&P 500. The company's recent earnings report revealed robust order growth and optimism surrounding its Splunk acquisition.
Analysts believe Cisco's role in AI infrastructure development, similar to its role in internet infrastructure in the past, will drive further stock gains. Chatterjee of JPMorgan rates Cisco shares as Outperform, citing the recovery cycle in enterprise networking demand.
Robbins also highlighted the need for the Trump administration to establish a strategic bitcoin reserve and address concerns raised by the Federal Reserve and Bank of America CEO.