Cisco CEO Advocates for US-China Cooperation Amid Trump Presidency
At the World Economic Forum in Davos, Switzerland, Cisco CEO Chuck Robbins emphasized the importance of harmonious relations between the United States and China for global business prosperity.
Cisco's Business Presence in China
Cisco entered the Chinese market in 1994 and has a significant presence with over 4,000 employees and branches in 16 cities. The company engages in sales, customer support, R&D, business process operations, and IT sourcing in China.
Concerns Regarding Tax Cuts and Trade Policy
Robbins expressed concern about expiring tax cuts and the potential impact of a trade war with China. He advocated for extending the tax cuts for businesses and households, which are set to expire this year.
Cisco's Recent Performance
Shares of Cisco have outperformed the S&P 500 in recent months due to strong demand for AI infrastructure products. The company surprised investors with 9% order growth and optimism about the integration of its acquisition of Splunk.
Outlook and Key Trends
Cisco expects another $1 billion of AI orders in the current fiscal year. Analysts see the company as a key player in building out the world's AI infrastructure, similar to its role in laying the foundation for the internet in the past.