Cisco & IBM show old-tech firms can be winners in AI

WHILE MANY OF the biggest and most popular technology stocks have stumbled out of the gates in 2025, some of the sector's legacy names are drawing renewed attention.

- RYAN VLASTELICA

Companies like Cisco Systems, International Business Machines, and Oracle are outperforming this year, as they signal that they, too, can be winners in the crucial growth area of artificial intelligence.

These stocks are also attracting investors with cheaper valuations and appealing dividend yields compared with the more familiar AI winners, who are left with higher bars to clear after prolonged outperformance. A murky outlook for interest rates and import tariff tensions only underscore their appeal.

"In a time of economic uncertainty, these more mature companies offer attributes that are defensive and very desirable," said Stephen Bersey, head of technology research at HSBC.