Cisco Systems Inc., the biggest maker of computer networking equipment, delivered better-than-expected quarterly results and an upbeat outlook for the current period, but a conservative annual forecast brought a muted reaction from investors.

Companies have ramped up investments in AI technologies which require heavy computing power, creating a spike in demand for data centers, which use Cisco's products such as ethernet switches and routers.

Shares of the computer networking equipment maker were down 1.4% in extended trading after the company forecast annual revenue broadly in line with estimates. Companies have been ramping up investments in AI technologies which require heavy computing power,