So you want to roll out AI across your company, but the thought of securing it and getting it running everywhere gives you a headache? You're not alone. That's the problem Cisco Systems Inc. (CSCO) and Nvidia Corporation (NVDA) are trying to solve with their latest collaboration.
On Monday, Cisco announced an expansion of its "Secure AI Factory" with Nvidia. The goal is pretty straightforward: make it simpler for enterprises to deploy and secure AI, whether it's running in a massive data center or out at the "edge"—closer to where data is actually generated, like in a retail store or a factory.
The platform is built to handle real-time AI workloads and is powered by Nvidia's RTX PRO Blackwell GPUs, paired with Cisco's networking systems. The big promise here is speed. Cisco says this architecture can help companies cut their AI deployment timelines from months down to weeks. Perhaps just as importantly, it's designed to bake security into the entire infrastructure and the AI agents themselves from the start.
"Most organizations understand the potential for AI to transform their businesses, but they're navigating how to deploy the technology safely and at scale," said Cisco CEO Chuck Robbins.
Nvidia CEO Jensen Huang echoed the sentiment, emphasizing that secure, end-to-end AI infrastructure is becoming critical as adoption accelerates. The update also brings new security tools to the table, including something called AI Defense and integration with Cisco's Hybrid Mesh Firewall, all aimed at protecting these new, distributed AI systems.
What's Going On With Cisco's Stock?
Let's talk about the stock for a minute. From a technical analysis perspective, Cisco's shares are sending a bit of a mixed message.
The stock is currently trading 0.50% above its 20-day simple moving average and 2.65% above its 100-day average, which suggests a positive short-term trend. Over the past year, shares are up a solid 29.58%, and they're hanging out closer to their 52-week highs than their lows.
But the momentum indicators tell a more nuanced story. The Relative Strength Index (RSI) is sitting at 50.51, which is considered neutral territory—the stock isn't overbought or oversold. Meanwhile, the MACD is at -0.1770, which is below its signal line. That's typically read as a bearish signal, suggesting some downward pressure.
So, you've got neutral RSI and a bearish MACD. That mixed momentum means traders are probably watching closely for the next clear signal. Technicians are eyeing key resistance at $80.00 and key support at $75.00.
What Are the Analysts Saying?
The analyst community seems to be looking past any short-term noise. The consensus rating on Cisco is a Buy, with an average price target of $88.00. The company is scheduled to provide its next financial update on May 13, 2026 (estimated).
Expectations are for earnings per share of 96 cents and revenue of $15.53 billion. The stock trades at a P/E ratio of 28.4x, which indicates investors are paying a premium for it.
Recent analyst actions have been bullish:
- UBS: Maintained a Buy rating and raised its price target to $95.00 (Feb. 12).
- Rosenblatt: Maintained a Buy rating and a $100.00 price target (Feb. 12).
- Evercore ISI Group: Upgraded the stock to Outperform and raised its target to $100.00 (Jan. 26).
ETF Exposure: Why It Matters
For big institutional investors and anyone tracking fund flows, it's worth noting where Cisco sits in popular exchange-traded funds (ETFs). Because of its size, it often carries a heavy weight.
- iShares MSCI USA Value Factor ETF (VLUE): 5.29% Weight
- First Trust NASDAQ Cybersecurity ETF (CIBR): 9.64% Weight
- First Trust Dow Jones Internet Index Fund (FDN): 7.95% Weight
The significance here is mechanical. Because Cisco makes up such a large piece of these ETFs, any significant money flowing into or out of these funds can force automatic buying or selling of Cisco shares by the fund managers to keep their portfolios in line.
As for the immediate market reaction, Cisco Systems shares were down 0.71% at $78.34 during premarket trading on Tuesday, according to market data.
