This Networking Stock Is Set to Win on an AMD-Meta Deal — and It Pays a Dividend Too

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That kind of budget reshapes chip demand and forces a rethink of the networks, switches, and security layers needed to keep AI models fed with data at high speed.As the spotlight shifts, the AMD-Meta deal hitting the tape sent networking names tied to AI infrastructure higher, and Cisco Systems (CSCO) quickly stood out as one of the clear winners. CSCO stock has pushed to new highs on growing AI-focused orders and still offers an annual dividend payout of $1.64 per share. That combination is exactly why this networking stock is set to benefit from the AMD-Meta deal while continuing to pay a dependable dividend. Let’s dive in.Want to Invest Like Billionaire Bill Gross? 3 Income Stocks to Buy Now.Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.Cisco Systems is a San Jose, California–based networking and cybersecurity company that builds the hardware and software underpinning global internet and data-center traffic. It carries a market capitalization of roughly $313 billion and returns cash to shareholders through an annual forward dividend of $1.64 per share, translating to a 2.06% yield.Shares change hands near $78 as of Feb. 26, up 3% year-to-date (YTD) and 24% over the past 52 weeks.www.barchart.comThis valuation embeds a trailing price-to-earnings (P/E) ratio of 24.2 times against a sector median of 21.8 times and a price-to-sales (P/S) multiple of 5.5 times versus a sector median of 3.1 times, suggesting investors are willing to pay a reasonable premium for Cisco’s earnings quality and leverage to AI networking.The latest earnings release on Feb. 11 detailed record quarterly revenue of $15.3 billion, rising 10% year-over-year (YOY) as customers accelerated spending on high‑performance networking and AI‑ready infrastructure. It also showed GAAP EPS climbing to $0.80, up 31% YOY, while non‑GAAP EPS reached $1.04, an 11% gain that highlighted profitable growth rather than just top‑line expansion.The report outlined a GAAP gross margin of 65.0% and a non‑GAAP gross margin of 67.5%, levels that reflect strong pricing power and efficient cost management. The update further reported a GAAP operating margin of 24.6% and a non‑GAAP operating margin of 34.6%, both above the high end of prior guidance. That momentum is further supported by AI infrastructure orders from hyperscalers reaching $2.1 billion in the quarter.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,787.00 -37.75 (-0.55%)Dow Futures48,336.00 -224.00 (-0.46%)Nasdaq Futures24,573.50 -182.25 (-0.74%)Russell 2000 Futures2,588.80 -23.30 (-0.89%)VIX23.57 +2.13 (+9.93%)Gold5,175.50 +51.80 (+1.01%)Trending tickersMOBX Mobix Labs, Inc. 1.1200 +0.9430 (+532.77%)CRWD CrowdStrike Holdings, Inc. 391.42 +6.56 (+1.70%)MRNA Moderna, Inc. 49.83 -3.02 (-5.71%)TGT Target Corporation 120.80 +7.63 (+6.74%)MU Micron Technology, Inc. 379.68 -32.99 (-7.99%)PortfolioSign in to access your portfolioSign inTop gainersKTB Kontoor Brands, Inc. 78.18 +13.36 (+20.61%)INGM Ingram Micro Holding Corporation 24.41 +3.06 (+14.33%)INTA Intapp, Inc. 26.14 +2.70 (+11.52%)TDW Tidewater Inc. 87.67 +7.80 (+9.77%)AVAV AeroVironment, Inc. 228.30 +19.98 (+9.59%)Top losersMDB MongoDB, Inc. 252.73 -72.28 (-22.24%)STNE StoneCo Ltd. 13.73 -3.30 (-19.38%)LIF Life360, Inc. 43.97 -9.82 (-18.26%)SE Sea Limited 87.82 -17.39 (-16.53%)ALG Alamo Group Inc. 184.78 -33.69 (-15.42%)Most activePLUG Plug Power Inc. 2.2300 +0.4200 (+23.20%)NVDA NVIDIA Corporation 180.05 -2.32 (-1.27%)ONDS Ondas Inc. 10.02 -0.65 (-6.09%)AAL American Airlines Group Inc. 12.46 -0.06 (-0.48%)F Ford Motor Company 12.70 -0.69 (-5.15%)Top economic eventsEarnings eventsMy earnings eventsEarnings events