Cisco, once at the centre of dot com revolution, in focus as shares hit record after more than 25 years

Thanks in part to the surge in artificial intelligence investment, Cisco Systems Inc., a symbol of the dot-com technology revolution, has hit a record after 25 years.

On Wednesday, shares increased 0.9% to $80.25, surpassing a peak that had stood for more than 25 years. Up until late 2015, the tech-heavy Nasdaq 100 Index reached its peak on March 27, 2000, which many consider to be the peak of the dot-com bubble.

The gains on Wednesday were a part of a larger surge in US stocks following the Federal Reserve's third consecutive rate decrease. The Nasdaq 100 Index increased by 0.4%, while the S&P 500 Index increased by 0.7%.

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Investors and market analysts are comparing today's Magnificent Seven-led rally to the previous time it reached an all-time high, which coincides with Cisco's ascent to a new record.

Cisco's stock increased by around 600% in the two years preceding its 2000 record, increasing the company's worth to almost $500 billion. Cisco lost over 90% of its value when the dot-com bubble finally burst, reaching a low of roughly $60 billion in late 2002.

Cisco's stock has increased by more than 800% since then. However, its market capitalisation is still almost 40% behind its dot-com peak.

Strong sales projections from last month fuelled the most recent leg of Cisco's climb and increased hope that AI spending will boost the company's growth in the years to come.

The San Jose, California-based business has been trying to put itself in a better position to profit on the billions of dollars that businesses worldwide are spending on AI technology.

The business stated that it anticipates sales for its current fiscal year, which ends in July, to reach up to $61 billion, which is roughly $1 billion more than it had previously projected and above Wall Street's projections.