"[John Chambers] has managed to navigate waters that nobody ever has. He's leaving that CEO job at a high. That stock is only 1 point off its high [and] it happened to have the best European number," Cramer said on "Squawk on the Street."
The tech giant announced Monday that Chambers will be stepping down as chief executive, effective July 26, and will be succeeded by Senior Vice President Chuck Robbins.
Cramer said he would not sell Cisco's stock on this news because Chambers will remain as executive chairman.
Read More Cisco's Chambers to step down as CEO
He also added that "this company remains very undervalued" compared to other Nasdaq-listed stocks.
Cisco shares traded slightly higher in mid-morning trading. Click here to see where the stock is trading now.