SAN JOSE, Calif. - Cisco Systems Inc. [NASDAQ: CSCO], a prominent player in the Communications Equipment industry and consistently profitable over the last twelve months, and NVIDIA Corporation have joined forces to develop a new AI infrastructure solution, the Cisco Secure AI Factory with NVIDIA, designed to enhance security across all layers of data center operations. This initiative aims to simplify the deployment and management of AI workloads for enterprises, while providing high levels of security. According to InvestingPro data, 16 analysts have recently revised their earnings upwards for Cisco’s upcoming period, suggesting strong confidence in this strategic direction.
The partnership leverages Cisco’s and NVIDIA’s strengths in networking and AI to offer customers a reference architecture that integrates security at every level, from applications and workloads to the infrastructure itself. The Cisco Secure AI Factory with NVIDIA utilizes Cisco’s AI Defense and Hybrid Mesh Firewall to embed security within the AI stack.
This collaboration is part of an expanded partnership between the two companies, which was first announced in February 2025. The new architecture is expected to streamline the process of adopting AI for enterprises by offering validated reference architectures that are ready today.
The Cisco Secure AI Factory with NVIDIA includes a suite of technologies from both companies and their ecosystem partners, encompassing compute, networking, storage, and software solutions. These include Cisco UCS AI servers, Cisco Nexus Hyperfabric AI networking solutions, and the NVIDIA AI Enterprise software platform. Operating with a moderate level of debt, Cisco maintains strong financial flexibility to support such technological innovations. For a comprehensive analysis of Cisco’s financial health and growth prospects, including additional ProTips and detailed metrics, explore the full research report available on InvestingPro.
Cisco’s Hybrid Mesh Firewall and Hypershield are key components of the security infrastructure, providing unified security management and deep packet inspection. The architecture also features AI Defense, a set of tools designed to protect AI applications from various risks throughout the development lifecycle.
The companies anticipate that the Secure AI Factory will offer flexible deployment options, allowing customers to either deploy a fully integrated AI solution or build their own infrastructure using modular components from Cisco, NVIDIA, and their partners.
While many individual technology components of the architecture are available now, the complete solutions based on the Cisco Secure AI Factory with NVIDIA are expected to be purchasable before the end of 2025.
This news is based on a press release statement from Cisco Systems, Inc.
In other recent news, Cisco Systems Inc. reported revenues of $14.0 billion in its latest earnings report, slightly exceeding its guidance range. The company demonstrated strong momentum in AI infrastructure, securing over $350 million in orders during the quarter, with total AI orders reaching approximately $700 million for the first half of fiscal 2025. Cisco has increased the lower end of its fiscal 2025 growth guidance to 4.1%, up from 2.8% in the previous quarter. Additionally, Citi analysts have raised Cisco’s stock price target from $71.00 to $73.00, maintaining a Buy rating, citing the company’s collaboration with Nvidia and the growing demand for AI applications.
Cisco has announced a partnership with NVIDIA Corporation to develop a unified architecture for AI-ready data center networks, integrating Cisco’s networking software with NVIDIA’s Spectrum-X platform. This collaboration aims to simplify the management of enterprise and cloud provider networks, offering more flexibility and choice in AI data center investments. Furthermore, Cisco’s proposed unsecured notes for commercial paper reduction have been rated ’AA-’ by S&P Global Ratings, reflecting the company’s stable capital structure.
Cisco is also part of a joint initiative with AMD, Nokia, and Jio Platforms Limited to develop the Open Telecom AI Platform, which seeks to enhance telecom platforms with AI-driven automation, security, and efficiency. Meanwhile, Cisco is an investor in AI firm CoreWeave, which is reportedly planning an IPO aiming for a valuation of over $35 billion. These developments highlight Cisco’s strategic focus on expanding its presence in the AI and networking sectors.
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