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SAN JOSE - Cisco (NASDAQ:CSCO), a $272.7 billion market cap leader in communications equipment with a perfect Piotroski Score of 9 according to InvestingPro, introduced its new 8223 routing system on Wednesday, designed specifically for connecting data centers running artificial intelligence workloads. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value.
The 8223 system delivers 51.2 terabits per second of Ethernet routing capacity in a 3-rack-unit form factor. The router is powered by Cisco’s newly announced Silicon One P200 chip, which the company states can help scale interconnect bandwidth to over 3 Exabits per second. This innovation comes as Cisco maintains strong financial performance, with annual revenue reaching $56.65 billion and impressive momentum reflected in its 31.26% price gain over the past six months.
According to Cisco, the 8223 addresses challenges created as AI compute requirements outgrow individual data center capacities, necessitating workload distribution across multiple facilities. The system features 64 ports of 800G connectivity and supports coherent optics reaching up to 1000km.
"AI compute is outgrowing the capacity of even the largest data center, driving the need for reliable, secure connection of data centers hundreds of miles apart," said Martin Lund, Executive Vice President of Cisco’s Common Hardware Group, in the press release.
The company highlighted the router’s power efficiency, deep buffering capabilities, and security features including line-rate encryption with post-quantum resilient algorithms. The system will initially be available for open-source SONiC deployments, with IOS XR support planned for the future.
Microsoft’s Dave Maltz, Technical Fellow and Corporate VP of Azure Networking, commented in the announcement: "The increasing scale of the cloud and AI requires faster networks with more buffering to absorb bursts. We’re pleased to see the P200 providing innovation and more options in this space."
Cisco indicated the 8223 is now shipping to initial hyperscale customers. The P200 chip will also be deployable in modular platforms and disaggregated chassis configurations.
The announcement comes as data centers face increasing power constraints and bandwidth demands from growing AI workloads, according to the company’s press release statement. For deeper insights into Cisco’s financial health, growth prospects, and detailed analysis of its AI initiatives, investors can access comprehensive Pro Research Reports on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Cisco has been active in enhancing its artificial intelligence offerings across various sectors. The company introduced AI agent capabilities for workplace collaboration at its WebexOne 2025 event, unveiling "Connected Intelligence" solutions that integrate AI agents into collaboration tools. Additionally, Cisco announced enhancements to its Webex Customer Experience portfolio, including a new AI-powered quality management tool for contact centers set to launch in early 2026. This tool aims to provide supervisors with a unified platform for monitoring and coaching both AI and human agents.
Cisco also enhanced its Splunk Observability portfolio, introducing AI Troubleshooting Agents and Event iQ to help organizations monitor IT environments and AI systems. In another development, Cisco expanded its Secure AI Factory by integrating VAST Data’s InsightEngine with Cisco AI PODs, enhancing data extraction for AI applications. Furthermore, a study by NTT DATA and Cisco revealed that 78% of companies prioritize networking capabilities when selecting providers for generative AI infrastructure, highlighting the importance of modern networks in supporting AI workloads. These recent developments underscore Cisco’s commitment to advancing AI technologies across various platforms.
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