The network equipment provider Cisco has significantly exceeded Wall Street's expectations with its current revenue forecast for the ongoing quarter, sending a strong signal to the market. After Cisco's shares recently fell to a low of $44.50 – the lowest value in 21 months – they experienced a significant surge in NASDAQ trading on Thursday, rising by 7.46 percent to $48.79. This marked the highest daily increase in five months with a peak value of $50.28.

Cisco expects revenue between $13.65 billion and $13.85 billion for the current quarter, surpassing analysts' expectations at the lower end of that range. The optimistic outlook could be a sign that investments in IT infrastructure are picking up again, which aligns with the generally improved sentiment in the U.S. technology sector. Additionally, the NASDAQ 100 Index, heavily influenced by technology stocks, recorded its sixth consecutive gain day after a weakness phase in August.

Alongside the positive outlook, the performance in the fourth fiscal quarter also generated enthusiasm in the market. Tal Liani, an analyst at Bank of America, attested to Cisco's solid results and saw signs of normalized demand that could potentially accelerate the company's growth again. Particularly noteworthy is the positive order trend with a 6 percent increase in orders, following stagnation in the previous quarter and a 14 percent decline in the same quarter of the previous year.

Liani sees an attractive buying opportunity for Cisco shares in the recent developments. Despite the recent recovery, the company's annual balance has not yet been balanced, while the NASDAQ 100 has already increased by around 15 percent this year. The analyst maintains his buy recommendation and sets a price target of $60 for Cisco, promising an additional upside potential of about 20 percent.