10 Cheap Blue Chip Stocks to Buy According to Hedge Funds

5. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 84

Forward P/E as of April 18: ~14.1x

Cisco Systems, Inc. (NASDAQ:CSCO) is engaged in designing, manufacturing, and selling Internet Protocol-based networking and other products related to the communications and IT industry. The company’s strong Q2 2025 results were aided by accelerating customer demand for its technology. With AI becoming more pervasive, Cisco Systems, Inc. (NASDAQ:CSCO) remains well-placed to help its customers scale network infrastructure, increase data capacity requirements, and adopt best-in-class AI security. In Q2 2025, the company’s revenue came in at $14.0 billion, reflecting a rise of 9% YoY, while its non-GAAP EPS rose 8% YoY.

Cisco Systems, Inc. (NASDAQ:CSCO) highlighted that Splunk has been performing in line with the company’s expectations on the top line, and was accretive to Q2 non-GAAP EPS, earlier than planned.  Cisco Systems, Inc. (NASDAQ:CSCO)’s focus on AI infrastructure and networking solutions places it well to capitalize on the increased demand for AI-related technologies. The acquisition of Deeper Insights expands Cisco CX’s technology footprint and engineering talent, ramping up innovation and momentum of Cisco’s CX AI capabilities and services. The company’s remaining performance obligations (RPO) sat at $41.3 billion, up 16% in total, and 51% of this amount is expected to be recognized as revenue over the upcoming 12 months.