Following a strong earnings report, Cisco Systems has announced that it will be laying off nearly 4,000 employees, looking to shift towards AI.  The technology conglomerate will join multiple big tech names that have been adopting AI into their infrastructure and restructuring around it.

Shares of the networking giant, already near record highs, jumped by double digits as Chuck Robbins laid out plans to make Cisco 'one of those winners.'

In its earnings report released on Wednesday, Cisco said it sold $5.3 billion in AI infrastructure from hyperscalers so far this fiscal year. It is now expecting orders for the fiscal year to reach $9 billion, up from $5 billion, and revenue to reach $4 billion instead of $3 billion.

Cisco Systems Inc. jumped by the most in more than 14 years after the company delivered a better-than-anticipated sales forecast and announced plans to cut thousands of jobs, an attempt to focus on the fast-growing AI market.

Cisco crushed estimates and raised guidance. The dot-com recovery is officially old news.

The S&P 500 added 0.9% to its all-time high set the day before. The Dow Jones Industrial Average climbed 386 points, or 0.8%, and is on track to finish a day above the 50,000 level for the first time since the war with Iran began. The Nasdaq composite was 1% higher and adding to its own record, as of 11:45 a.m. Eastern time.

Shares headed for their best day in more than two decades after Cisco blew past its AI infrastructure and hyperscaler orders guidance for the fiscal year

Cisco Systems helped lead the market after jumping 16.9%. The tech giant reported better profit and revenue for the latest quarter than analysts expected, and CEO Chuck Robbins said it saw “very strong, broad-based demand for our products.” Big Tech behemoths in particular are pouring cash into artificial-intelligence technology.