(Reuters) - Cisco Systems ( CSCO ) raised its annual revenue forecast on Wednesday, betting on higher demand for its cloud networking gear amid a boom in the artificial intelligence technology, sending its shares up 6.7% in extended trading.

Corporate customers have been investing billions of dollars in building AI infrastructure to speed up their digital transformation, boosting demand for data centers, which use Cisco's ( CSCO ) products such as ethernet switches and routers.

The company has also seen strong order growth across its networking products as customers worked down inventory.

The San Jose, California-based company expects its revenue to be between $56 billion and $56.5 billion for fiscal 2025, compared with its prior forecast of $55.3 billion to $56.3 billion. Analysts, on average, expect $55.99 billion, according to data compiled by LSEG.

Revenue for the second quarter ended January 25 was $14 billion, ahead of analysts' estimate of $13.87 billion.