Cisco (CSCO) released a fourth-quarter sales forecast that exceeded analyst expectations, indicating that artificial intelligence infrastructure development is driving increased demand for network equipment. The company expects revenue for the fourth quarter ending in July to be between $16.7 billion and $16.9 billion, with earnings per share estimated at approximately $1.16 to $1.18, compared to previous analyst estimates of $15.8 billion in revenue and $1.07 in earnings per share. Cisco also announced a restructuring plan, stating that this move will enable it to increase investments in artificial intelligence and other growth opportunities, with plans to incur up to $1 billion in severance costs and other one-time expenses. The layoffs will affect fewer than 4,000 positions, accounting for less than 5% of the total workforce. After the earnings report was released, Cisco's stock price rose more than 13% in after-hours trading, and as of Wednesday's close, the stock has gained a total of 32% this year.