May Was Merry For These Techs In The Dow Jones Industrials

• Cisco posted its best monthly gain since November 2002, with much of the surge occurring after a bullish May 14 earnings report that highlighted AI data center demand for Ethernet networking upgrades
• IBM rallied 7% on May 31 after a Barclays upgrade, briefly topping a 324.90 buy point, and has a Composite Rating of 92
• The Dow Jones Industrial Average rose 2.8% in May and climbed 10.1% over two months, its best two-month performance since December 2023, while Nvidia gained just 5.8% in the month

Market Summary: Tech Giants Lead Dow Jones on AI Momentum

Key Performance Metrics

Cisco Systems and IBM dominated the Dow Jones Industrial Average in May 2025, delivering exceptional returns driven by AI enthusiasm. Cisco surged 31.6% during the month—its best performance since November 2002 (+33.5%)—following an 18% gain in April. IBM climbed 28.9% in May, with an additional 7% rally on Monday after a Barclays upgrade. The stock briefly topped its 324.90 buy point.

In contrast, Nvidia, the largest AI stock, rose a more modest 5.8% in May.

Year-to-Date Performance

• IBM: +7%
• Cisco: +57%
• Nvidia: +20%

Market Context

The Dow Jones Industrial Average gained 2.8% in May, reaching a record high. Over the past two months, the index climbed 10.1%—its strongest two-month stretch since December 2023. Year-to-date, the Dow is up just over 6%.

Business Drivers

Cisco's rally accelerated on May 14 following a bullish earnings report and job cuts related to AI utilization. AI data centers are fueling demand for Ethernet networking upgrades, benefiting Cisco's networking equipment and high-speed connectors.

The performance echoes the late 1990s internet boom, when both companies were key beneficiaries. Cisco pioneered internet infrastructure, while IBM experienced a 500%+ rally from July 1996 to July 1999.

Technical Indicators

Cisco currently holds a Composite Rating of 98, while IBM's stands at 92, indicating strong relative performance and fundamental strength.