Cisco Systems, Inc. (NASDAQ:CSCO) is included among the
13 Best Roth IRA Stocks to Buy Now.
On February 10, Cisco Systems, Inc. (NASDAQ:CSCO) introduced a new chip and router built to accelerate data movement inside large data centers. The launch positions the company to compete with Broadcom and Nvidia for a share of the projected $600 billion AI infrastructure spending cycle.
The new Silicon One G300 switch chip is expected to go on sale in the second half of the year. Cisco said the chip is designed to improve communication between the processors that train and run AI systems, even when operating across hundreds of thousands of connections.
The G300 will be manufactured using Taiwan Semiconductor Manufacturing Co.’s 3-nanometer process technology. It includes new “shock absorber” features intended to prevent AI chip networks from slowing down during sudden spikes in data traffic. Martin Lund, executive vice president of Cisco’s common hardware group, said in an interview that such traffic surges occur regularly at large scale.
Cisco expects the chip to help certain AI computing tasks complete 28% faster. Part of that improvement comes from the chip’s ability to automatically reroute data around network issues within microseconds. Lund noted that the company is focused on improving overall end-to-end network efficiency.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells technologies that support the internet. The company integrates its offerings across networking, security, collaboration, applications, and cloud.
While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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