Cisco Systems is a multinational technology company that specializes in networking hardware, telecommunications equipment, and high-technology services and products
It is renowned for its role in enabling the Internet and providing solutions for digital communication, including routers, switches, and cybersecurity systems. Cisco also offers software and hardware solutions for cloud computing, data centers, and the Internet of Things (IoT), helping businesses streamline their operations and enhance connectivity across various platforms and devices. The company is committed to innovation and plays a key role in advancing technology standards, making significant contributions to both large enterprises and smaller organizations worldwide.
Growth is oxygen.
But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle.
While details are scarce at this point, the platform will use open application programming interfaces (API) and large language models to optimize networks in real time.
The brokerage cited Nvidia’s positive commentary on its enterprise data center sales performance. Analysts believe that this reflects positively on Cisco, and they maintained their ‘Buy’ rating on the stock.
In its shareholder letter, the company likened its AI and high-performance computing role to Cisco’s infrastructure leadership during the internet boom.
Nvidia smashed expectations with its record-breaking quarter, driven by AI infrastructure demand. Networking giants like Arista and Cisco face fierce competition.
Cisco expands partnership with Nvidia to accelerate AI adoption in enterprises, developing data center switches with Nvidia Spectrum Ethernet platform.
Video conferencing platform Zoom (NASDAQZM) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 3.3% year on year to $1.18 billion. On the other hand, next quarter’s revenue guidance of $1.16 billion was less impressive, coming in 0.8% below analysts’ estimates. Its non-GAAP profit of $1.41 per share was 4.6% above analysts’ consensus estimates.
With $17 billion now earmarked for repurchases, investors remain optimistic that Cisco’s capital allocation strategy will continue to provide a tailwind for its stock.
AMD remains a strong buy with a $170 target price, thanks to its strong position in AI market, market share gains and competition with Intel and Nvidia.
Cisco's strong earnings and shareholder-friendly moves suggest a powerful resurgence, prompting investors to consider if the tech giant is genuinely reborn.
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