Cisco shares will rise: Cisco Switch Sales Booming

source:thestreet.com
Cisco shares rose 60 cents, or 2.35%, to $2.61 on Tuesday, mirroring the broader advance in tech stocks that saw the Nasdaq gain 2.39%.

SAN JOSE, Calif. (TheStreet) -- Cisco(CSCO) may be pulling out all the Hollywood-star stops to sell its latest technology, but investors should also be keeping an eye on the infinitely less sexy world of network gear.

Cisco saw its Ethernet switch revenue leap 23.5% between the fourth quarter of last year and the first quarter of 2010, according to the latest numbers from Infonetics Research. Cisco's Nexus product was the major driver of this growth, reflecting a broader rebound in enterprise data center spending.

"We saw a 30% sequential jump in purpose-built switch sales in the first quarter of 2010, with Cisco a driving force with their Nexus switch line," explained Infonetics analyst Matthias Machinowski in a statement. "Healthy annual growth is expected to continue in this segment."