Cisco shares surged 17% to a record-high on Thursday, set for their biggest single-day gain in over two decades, after it posted ​AI demand-powered strong results and announced nearly 4,000 job cuts to ‌redirect investments into technology.

Shares in Cisco Systems (CSCO) surged premarket after the company laid out plans to cut thousands of jobs to free up cash for artificial intelligence. In announcing it plans to shed about 5% of its workforce just this quarter,

Cisco reported record revenue and surging AI demand while announcing job cuts affecting thousands as it repositions for an AI-driven future.

The networking company said Wednesday that it is launching a restructuring that will cost up to $1 billion in severance, one-time termination benefits and other costs.

Cisco Systems Inc. delivered a better-than-anticipated forecast while also announcing plans to cut thousands of jobs, a move it said would help the company focus on a fast-growing AI market.

Cisco announced job cuts affecting roughly 4,000 staff, as CEO Chuck Robbins shifts the company's focus to AI investments, buoyed by strong earnings.

Cisco stock could be a big artificial intelligence winner. The former internet darling showed off its AI credentials with surging orders in its fiscal third-quarter earnings report late Wednesday. The stock was surging 18% to $119.

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