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.

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.

Cisco Systems raised annual revenue forecast on Wednesday, a sign of improving demand as the computer networking equipment maker shifts focus to cybersecurity, cloud systems and AI-driven products. Companies have ramped up investments in AI technologies which require heavy computing power,