Jim Cramer Says "Cisco's Still Very Much Alive"

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the stocks Jim Cramer was focused on. Cramer discussed the company in light of the dot-com bubble. He said:

“First, in the wake of these NVIDIA numbers, let me just give you the negative briefs, you know what I’m talking about, which is often expressed by younger people as reminiscent of the dot-com bubble… The worst losses came from the fiber optic companies that laid the track, that powered the internet… The third came from the phone companies. A huge number went bust… What didn’t go bust? Okay, Amazon, Cisco, Google, fortunately, hadn’t come public yet, so it didn’t get to go bust…

We heard at every turn that they were just parts of the bubble, and then when the bubble burst, it would just be a matter of time before they would burst… Nothing happened. Sure, Intel and Cisco didn’t soar like the others. Cisco’s still very much alive… Overvalued as Cisco was in 2000, when it was worth $550 billion. It’s true, Cisco was overvalued at the time. It’s now worth a little less than half of that. But here’s what I have to say to them: I don’t care about the seemingly sky-high market capitalization that these stocks have.”

Cisco Systems, Inc. (NASDAQ:CSCO) develops networking, security, and collaboration technologies, providing solutions in routing, switching, wireless connectivity, cloud, and AI-driven analytics. On August 14, Cramer commented:

“Now, I’ve been paying close attention to this one because Cisco’s the newest holding for my Charitable Trust. We bought it late last month, and it had a quick 3% gain going into yesterday’s close. Today, though, we have a smaller gain, but even though the quarter wasn’t perfect, I think it was net positive…

In the end, I think most of the hand-wringing over the lackluster parts of the quarter missed the big picture here. Instead, investors should be focused on the really strong momentum that Cisco’s seeing for its AI-related products and services. Those are the ones we saw him put together with Jensen Huang and NVIDIA…

I want you to put it all together. This is what I heard from Cisco: don’t sweat the stock’s small pullback. There was a lot to like from the quarter, especially the strong orders, which gives me confidence that Cisco’s inline guidance will ultimately prove to be conservative… I think they were practicing… under promise and overdeliver.

The bottom line: When you see Cisco pulling back after what I thought was a positive quarter, my recommendation is that you do some buying, not selling, because this is a great company with great management that’s finally riding the AI wave that I wanted so much for them to do. And hey, when the hyperscalers are building data centers all over the place, how can you not have some networking equipment exposure?”

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Disclosure: None. This article is originally published at Insider Monkey.