Deal will value New Jersey-based cloud-computing provider at $23 billion, Bloomberg reports
https://www.marketwatch.com/story/cisco-is-reportedly-close-to-investing-in-nvidia-backed-ai-startup-coreweave-b5a2b0bb
14 replies (most recent on top)
The target of cisco stock price will be 135 within 6 months.
Could work out well
Cisco (NASDAQ:CSCO) is likely to see continued benefits as artificial intelligence increases demand for high-speed network bandwidth and security, research firm Tigress Financial said.
The research firm reiterated its Buy rating on the Chuck Robbins-led firm and boosted its price target to $78, which implies a 45% return from current levels, when accounting for dividends.
"CSCO’s ongoing shift to smart AI-driven networks and increased cybersecurity integration will reverse the recent decline in revenues and drive a reacceleration in Business Performance trends," the firm wrote in a note to clients. "CSCO’s ongoing shift to smart AI-driven networks and increased cybersecurity integration will drive new growth opportunities, including data center connectivity and security, as well as the ability to integrate AI to improve and optimize its entire product ecosystem."
ML is probably better suited for this. GenAI could make the management more streamlined and intuitive and make reporting better. (natural language)
I agree with your answer, but for the larger audience the next question becomes "do I need data centers built with $40,000 NVIDIA chips powered by a '3-mile island' to make that reporting better?"
I haven't browsed Cisco's website in a while but not too long ago they made equipment from 8-port GigE switches to routers that can handle hundreds of terabits per second. AI is implemented already in many different ways at many different scales for many different use cases, and will likely expand in capability on tiny devices through worldwide collections of data centers. If all the comments here after HPE's announcement to acquire Juniper with its Mist acquisition were true AI has already proved valuable in networking.
Harvard Business Review:
layoffs set Cisco back more than 2 years on engagement and morale.
It takes 12–18 months for employee engagement to rebound after layoffs and that’s only if you hire new employees to backfill essential roles. Since Cisco is on a 6 month LR cadence, they never recovered.
For employees who make it through a time of layoffs, their commitment to staying with the company continues to drop over time, and this sentiment is a strong predictor of actual turnover.
Please don't ... I own NVIDIA stock.
Oh good. J2 findings more ways to spend money we don't have
Worth less than Splunk? Weird.
https://www.thelayoff.com/post/@1nkh+1uXEWBCT
Is this true? omg
Spectrum-X is the Cisco crusher.
Nvidia Spectrum-X is groundbreaking. It uses Ethernet to construct multi-tenant, hyperscale AI clouds that enables organizations to enhance the performance and energy efficiency of AI clouds while achieving greater predictability and consistency.
It is built using the Spectrum-4 Ethernet switch and BlueField-3 DPU, and promises performance and power efficiency increases over CISCO solutions as much as 1.7x.
AI workloads are built around GPUs, they require high-bandwidth, low-latency communication between the GPU (and its onboard memory) and the network adapter connecting the server to the fabric. One measurement, RDMA bisection, is a key indicator that the network is ready for AI, and Spectrum-X excels in this category. Compared to traditional Cisco based Ethernet, Nvidia Spectrum-X delivers over 4x higher effective bandwidth and over 4x lower latency.
NVIDIA Spectrum-X demonstrated consistently high performance in both non-noisy and noisy scenarios. In comparison, Cisco Ethernet showed performance variations of up to 20%
Nvidia will happily sell GPUs to Cisco but Coreweave is not a Cisco win by anystretch.
It is a way for Nvidia to gobble up more networking market share. And Nvidia will license Spectrum-X to Arista, Nile, Dell, SuperMicro, HPE, etc.
Win for Nvidia, huge crushing blow to Cisco's core switching segment.
Who is driving this bus at Cisco? good lord!
"Not tying this to any one networking company: is solving network and traffic management and improving security better done by generative AI or machine learning?"
ML is probably better suited for this. GenAI could make the management more streamlined and intuitive and make reporting better. (natural language)
Good money after bad. GenAI is a fad.
Not tying this to any one networking company: is solving network and traffic management and improving security better done by generative AI or machine learning?
Where are all the climate alarmists on the massive energy costs of AI. #frauds
Good money after bad. GenAI is a fad.
When you need to bring 3-mile island back online to sustain “AI”, you know it’s a problem.
Nvidia's compute architecture heavily favors its own InfiniBand technology
Nvidia also has it's own Ethernet Switch stack that competes directly against Cisco and is reportedly 5x faster and designed to work with their current and upcoming GPUS
Cisco is throwing more cash into the AI tornado
Old news