Hedge funds are buying these two big tech stocks while selling two rivals
SAN JOSE - Cisco (NASDAQ:CSCO), the $268 billion market cap communications equipment leader with a perfect Piotroski Score of 9 according to InvestingPro, announced on Wednesday a new solution designed to accelerate retrieval-augmented generation (RAG) pipelines for enterprise artificial intelligence applications, expanding its Secure AI Factory with NVIDIA platform.
The new offering integrates VAST Data's InsightEngine with Cisco AI PODs to provide faster data extraction and retrieval capabilities for agentic AI workloads. The solution follows the NVIDIA AI Data Platform reference design to transform raw data into AI-ready datasets. With annual revenue of $56.65 billion and strong financial health metrics, Cisco continues to demonstrate its commitment to innovation in the enterprise technology sector.
"Agentic AI has the potential to unlock the value of AI for enterprises around the world," said Jeremy Foster, senior vice president and general manager of Cisco Compute, in the press release statement.
The expanded platform includes Cisco UCS servers with NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs, which the company states will deliver high performance for next-generation AI applications. Cisco's high-performance ethernet networking connects compute and data resources.
According to the announcement, the solution aims to reduce RAG pipeline latency from minutes to seconds, enabling near-real-time AI responses. The architecture supports multiple AI agents and workloads simultaneously while maintaining security features through role-based access control and compliance readiness.
Justin Boitano, vice president of Enterprise AI at NVIDIA, noted that "the next wave of agentic AI will be fueled by enterprise data, enabling agents to tap into business knowledge during inference for precise, up-to-date insights."
The Cisco AI PODs with VAST InsightEngine are now available for order from Cisco. The company indicated this is the first in a planned series of AI services PODs designed to support various enterprise use cases. Trading at a P/E ratio of 25.72, Cisco appears slightly overvalued according to InvestingPro's Fair Value analysis. For deeper insights into Cisco's AI initiatives and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Cisco Systems reported its financial results for the July quarter, revealing revenue of $14.7 billion and earnings per share of $0.99, both slightly surpassing analysts' expectations of $14.6 billion and $0.98, respectively. This performance marks an overall revenue growth of approximately 8% year-over-year, with the core networking segment experiencing growth of more than 12%. Following these results, Evercore ISI raised its price target on Cisco to $74 from $72, maintaining an "In Line" rating. KeyBanc Capital Markets also reiterated an Overweight rating on Cisco, citing strong performance in its Networking segment and healthy product order growth. However, Piper Sandler lowered its price target to $64 from $70, maintaining a Neutral rating due to a modest growth outlook. Additionally, Cisco's board approved amendments to its bylaws to address deficiencies in director nomination notices. In a collaborative study with NTT DATA, Cisco highlighted the importance of modern network infrastructure for AI implementation, with 78% of companies valuing networking capabilities for generative AI. These developments reflect Cisco's strategic focus and recent performance in the market.
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