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Investing.com -- Cisco Systems (NASDAQ:CSCO) stock rose 1.6% while Broadcom (NASDAQ:AVGO) fell 0.7% after Cisco announced new chip technology aimed at connecting AI data centers, directly challenging Broadcom’s position in the growing AI networking market.
According to a report from Bloomberg, Cisco unveiled its Silicon One P200 chip and 8223 routing systems on Wednesday, designed to enable faster data transfers across long-haul optic cables connecting AI data centers hundreds of miles apart. The new components are significantly smaller than previous versions and specifically engineered to support AI training processes that require massive data transfers.
The move represents a direct competitive challenge to Broadcom, which released its latest Jericho networking chip in August with similar capabilities for AI workloads across multiple locations. While Cisco is less established in this specific market segment, the company appears to be moving aggressively to get its technology to customers ahead of Broadcom.
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