Cisco CEO Optimistic About US-China Relations, Focuses on Tax Cuts
Davos, Switzerland - Cisco CEO Chuck Robbins has expressed optimism about improved relations between the US and China during the Trump administration's second term.
At the World Economic Forum in Davos, Robbins emphasized the importance of cooperation between the two countries for global business. "The world is a better place and the global economy is stronger when the US and China coexist harmoniously," he said.
Cisco, with a significant presence in China since 1994, has experienced challenges in recent years due to competition. However, Robbins emphasizes the company's continued investment and plans to leverage its Business Roundtable influence to advocate for tax cuts and infrastructure development.
Cisco's Stock Perk Up
Cisco's stock has recently gained momentum, outperforming the S&P 500. This resurgence is attributed to positive earnings reports, optimism about AI infrastructure investment, and strong networking sales.
Analysts anticipate further gains for Cisco due to increasing demand for enterprise networking solutions and the company's potential role in AI infrastructure development.
Robbins' Priorities
Robbins highlighted tax cuts and AI infrastructure as key priorities for the company and the global business community. He emphasized the need to extend Trump's expiring tax cuts to avoid "trillions of dollars in tax increases for American citizens."
Cisco's success in AI infrastructure is seen as a natural evolution, given its historical role in the development of the Internet. The company expects to generate $1 billion in AI orders in the current fiscal year.