CNBC’s Jim Cramer said Cisco Systems Inc. (NASDAQ:CSCO) and Palo Alto Networks Inc. (NASDAQ:PANW) could have more room to run, arguing that Anthropic’s cybersecurity-focused AI model, Mythos, could prove to be a major catalyst for both companies.
“Both Cisco and Palo Alto came in hot but I think they can run further. Mythos is such a game changer for these companies,” Cramer said in a post on X Tuesday.
Why Cisco And Palo Alto Stand To Benefit
Cisco and Palo Alto are both among several partners in Anthropic’s Project Glasswing initiative, which gives select organizations access to Claude’s Mythos for defensive cybersecurity work.
Palo Alto CEO Nikesh Arora, in an earnings call on Tuesday, described Mythos as evidence that the industry has entered “the era of truly cyber capable systems,” while noting that the company had completed more than 800 customer meetings in six weeks as demand for AI-driven cybersecurity continues to grow.
Cisco further expanded its AI security push with the launch of Cisco Cloud Control, a platform designed to help enterprises manage and secure fleets of AI agents across their networks.
AI Spending Continues To Accelerate
Companies continue to ramp spending on AI infrastructure as they race to deploy generative AI applications and secure increasingly complex digital environments.
Major cloud providers and technology companies are collectively expected to spend hundreds of billions of dollars this year on data centers, networking equipment and AI-related software.
Cisco, in its earnings report last month, said the company had already secured $5.3 billion in AI infrastructure and hyperscaler orders so far this year. Buoyed by the strong demand, the company increased its fiscal-year orders outlook to $9 billion from $5 billion.
Palo Alto has likewise cited growing demand for AI-powered cybersecurity solutions, as the company raised its full-year outlook on Tuesday and highlighted strong customer interest in securing AI applications and infrastructure.
Cisco Hits Records, Palo Alto Near Peaks
Cisco shares climbed 5.5% on Tuesday to a record closing high of $128, while Palo Alto Networks slipped 1.1% to $297.18, remaining just shy of its 52-week high.
Palo Alto opened 5.6% lower, while Cisco edged 0.76% down in premarket trading.
Benzinga Edge Stock Rankings indicate Palo Alto has a Momentum score in the 92nd percentile and a Growth score in the 87th percentile, while Cisco has a Momentum score in the 93rd percentile and a Growth score in the 10th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: gguy on Shutterstock.com
Login to comment