Broadcom looks like the sharper AI investment compared with Cisco after both companies reported AI-heavy quarters. Cisco posted $17.3 billion in Q4 FY2026 revenue with full-year AI orders reaching $9.3 billion, nearly double its $5 billion target, while CEO Chuck Robbins declared an AI-driven networking super cycle. Broadcom reported $22.2 billion in Q2 revenue with AI semiconductor revenue up 143% to $10.8 billion and an AI backlog above $30 billion, giving visibility to 2028. Broadcom trades at 23 times forward earnings against more than 200% AI revenue growth, while Cisco trades at 26 times forward earnings for roughly 15% total growth. The main risk for Broadcom is concentration among six hyperscaler customers, while Cisco faces gross margin pressure from memory costs.
