Tuszik Oliver sold $316K of CSCO

Cisco (CSCO) shares rose 1.6% to $106.555 after announcing a plan to connect AI computing capacity into a network. The company expects AI-related revenue to grow 87.5% to $7.5B in fiscal 2027. However, the impact on revenue remains uncertain. GuruFocus notes 4 warning signs and a 40.93% premium over its valuation estimate.

Cisco (CSCO) shares fell 3.15% to $103.885 after announcing plans with Nvidia for faster optical connections in AI data centers. The new USFP module aims for 400Gbps per lane and 12.8Tbps capacity, offering higher bandwidth and power efficiency. The company's valuation is 37.45% above estimated fair value, reflecting growth expectations. Investors should monitor production, adoption, and revenue impact.

Cisco warned customers that a critical vulnerability (CVE-2026-76519) in its Secure Email Gateway is being exploited in the wild. The flaw was patched on Sept. 14 but was reassigned and added to CISA's KEV catalog on Oct. 14. Experts advise thorough investigation and potential rebuilding of affected systems.

NVIDIA and Cisco unveiled a 400Gb/s-per-lane optical module specification, aiming for 4× bandwidth density and 1.3× power efficiency. NVIDIA also opened its Vera Rubin rack and compute tray designs, benefiting Taiwan's optical and server suppliers. Meta adopted NVIDIA's Spectrum-6 switch chips for its IceCube platform. NVIDIA's Vera CPU MGX racks, in mass production, offer flexibility for cloud providers, with 12 Taiwanese companies as partners.

Nvidia unveiled its Vera Rubin rack design, partnering with Cisco on high-density optical modules. The company aims to drive industry standards and reduce costs. Nvidia's revenue is nearing $100 billion quarterly, with plans for significant growth. Meta and others reported performance improvements using Nvidia's technology. Morgan Stanley noted potential delays in 800V power delivery but expects steady progress. Nvidia and Cisco are developing USFP modules for higher bandwidth density.

Cisco has appointed Girish Rishi, CEO of Cognite and former executive at companies like Blue Yonder, to its board. Rishi brings 30 years of experience in AI and data. Cisco aims to leverage his expertise to support its AI-ready infrastructure strategy.