Cisco partners with NVIDIA to unveil AI factory architecture, aiming to drive up AI-driven revenues.

From Nasdaq: 2025-03-24 11:31:00

Cisco Systems is partnering with NVIDIA to unveil AI factory architecture, expecting to drive up AI-driven revenues. Cisco already has over $700 million in AI infrastructure orders, aiming to surpass $1 billion in fiscal 2025. The company is seeing growth in AI-powered robotics and industrial security, despite challenges like macroeconomic conditions and competition.
Cisco’s collaboration with NVIDIA includes AI-ready data center networks and the Secure AI Factory, aiming to simplify AI infrastructure deployment and management. The launch of 800 gig Nexus switches is expected to attract orders from AI-based cloud customers. Cisco is expanding its Agentic AI footprint across its portfolio, enhancing customer experience with AI-driven solutions.
Cisco’s security orders doubled in the fiscal second quarter, driven by solutions like Splunk, SASE, and Network Security. Security revenues jumped 117% year over year to $2.11 billion. Cisco is integrating Talos and AppDynamics into Splunk solutions, launching new AI defense solutions to address security concerns in AI transformation.
For fiscal 2025, Cisco expects revenues between $56-$56.5 billion and non-GAAP earnings per share between $3.68 and $3.74. Analysts estimate revenue growth of 4.88% year over year, with earnings expected to decline slightly. Cisco has beaten earnings estimates in the past four quarters, with an average surprise of 4.07%.
Cisco’s innovative portfolio and strong growth potential position it well in the tech landscape. However, the stock is not cheap, trading at a premium price/sales ratio. With a Zacks Rank of #3 (Hold), investors may want to wait for a better entry point. Cisco offers positive guidance for 2025, expecting revenue growth and earnings per share within a specified range.



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