Chuck Robbins, Cisco's CEO, said on a Wednesday conference call that orders from large-scale clients for artificial intelligence infrastructure exceeded $300 million in the quarter. Server makers such as Dell and HPE have also focused on sales of hardware that can help clients implement generative AI.

"We have earned more design wins and remain confident that we will exceed our target of $1 billion of AI orders this fiscal year from web-scale customers," Robbins said.

U.S. government agencies have delayed deals with Cisco, rather than scrapping them altogether, Robbins said.