Investors have had to deal with many different uncertainties lately, including high inflation and the prospects of an economic recession. However, the stock market weighs longer-term prospects more heavily than the near term, and that has helped major indexes recover from their worst levels of the summer. Shortly before the market open, futures on the Dow Jones Industrial Average (^DJI -0.98%) had risen 16 points to 33,979. Futures on the S&P 500 (^GSPC -0.46%) had gained 5 points to 4,282, and Nasdaq Composite (^IXIC -0.64%) futures had managed to climb 19 points to 13,512.

The big news of the morning came from Cisco Systems (CSCO -0.52%), which announced its latest quarterly financial results and made its shareholders more comfortable with what the future will bring. However, another tech stock, Wolfspeed (WOLF 1.59%), saw even bigger gains in its share price. Read on to learn more about both of these businesses.

Cisco makes a connection

Shares of Cisco Systems climbed nearly 5% in premarket trading on Thursday morning. The networking giant's fiscal fourth-quarter results for the period ending June 30 reassured investors that its prospects remain solid.

Cisco's numbers weren't overwhelmingly strong, but they were better than many had feared. Fourth-quarter revenue was flat from year-ago levels at $13.1 billion, and adjusted earnings of $0.83 per share were down 1% year over year. That completed a fairly calm fiscal year for Cisco, with sales climbing 3% to $51.6 billion and a 4% rise in adjusted earnings to $3.36 per share.

CEO Chuck Robbins pointed to record levels of product orders and backlog as of fiscal year-end as positive signs of future success for Cisco, and the company's guidance for fiscal 2023 shared that optimism. Cisco expects sales to rise 4% to 6% over the next year, with adjusted earnings between $3.49 and $3.56 per share. That would represent relatively slow growth on the bottom line, but it nevertheless satisfied investors who have come to expect somewhat more sluggish performance from the tech giant than one would see from smaller companies.

Even after the gains, Cisco stock remains down by nearly a quarter from where it started the year. If demand for technological innovation remains strong, however, Cisco is likely to get its fair share of business for years to come.

Wolfspeed stays hungry

Much bigger share price gains came for Wolfspeed, with its stock climbing more than 22%. The semiconductor chipmaker's fiscal fourth-quarter results for the period ending June 30 showed continuing growth that kept shareholders optimistic.

Wolfspeed reported revenue gains of 57% for the quarter, with sales coming in at $228.5 million. The chipmaker continued to lose money, but adjusted losses of just $0.02 per share were far narrower than the $0.23 per share loss Wolfspeed posted in the fourth quarter of fiscal 2021. For the full fiscal year, sales jumped 42% and losses narrowed by nearly half.

But what has investors truly excited is Wolfspeed's view for the near future. Design-in demand, a measure of future business levels, jumped to $2.6 billion for the fourth quarter, and the company is winning new customers and bolstering its margins. As a result of its strong momentum, Wolfspeed thinks it will top its 2026 revenue outlook of $2.1 billion by as much as 30% to 40%.

Wolfspeed doesn't expect to become profitable in the near term, giving guidance for another modest loss in the first quarter of fiscal 2023. However, with strong prospects in getting customers to adopt more of its silicon carbide and gallium nitride chip technologies, Wolfspeed expects to be a strong grower for years to come.