News about CSCO

On Thursday, 48 ETFs bought Cisco Systems (CSCO) shares versus 25 selling, but the sellers moved larger amounts, leaving net ETF selling of $103.3 million after net purchases of $142.7 million on Oct. 28 and $12.9 million on Oct. 27. The largest sellers were QQQ ($42.4 million), IYZ ($26.4 million) and TECL ($24.5 million), with QQQ cutting 390,592 shares. Over the last five reported days, ETFs were net buyers on three and net sellers on two. Cisco, the world's largest supplier of computer networking equipment, reported trailing-12-month revenue of $63.33 billion, up 12.1%, and a 20.9% net margin. Its GF Score is 88, the $104.51 price sits above the $75.92 GF Value, and the shares are up 38.19% year to date.

The article examines whether Cisco's share price, currently at US$110.24, is supported by expected free cash flow. Under a DCF model, free cash flow over the past 12 months was about US$13.1 billion, and the estimated intrinsic value is well above the current price. This is based on the assumption that cash flow keeps rising from the networking, security and AI-ready observability businesses, along with the Cisco 360 Partner Program. The stock has gained 130.6% over the past 3 years, and its P/E ratio is 32.8 times.

Cisco Systems and NVIDIA announced a collaboration on next-generation 400G optical technology for AI data centers, aiming to commercialize a USFP (ultra small form factor pluggable) standard designed to quadruple bandwidth density. The partners also want to build an open hardware ecosystem with other optical and networking vendors, including TE Connectivity and Amphenol, to support large-scale AI workloads. The article notes Cisco, with a market capitalization of about $453.7b, makes networking and security gear, and that the move targets wiring constraints that could cap AI infrastructure spending. It also flags risks: pushing 51.2T and 102.4T systems, 1.6T optics and new 400G modules adds pressure on hardware mix and memory costs, while Arista and Juniper are also chasing AI fabrics.