TECH - Cisco's Expanded Partnership With Nvidia Overshadowed By The Price It Has To Pay For Its AI And Cybersecurity Shift | Benzinga
Cisco Systems Inc (NASDAQ: CSCO) joined Alphabet (NASDAQ: GOOG), Amazon.com Inc (NASDAQ: AMZN),Microsoft Corporation (NASDAQ: MSFT) in entering 2024 with job cuts as it announced it will be decreasing its workforce by 5% which implies eliminating about 4,250 jobs. Although Cisco reported it expanded its AI deployment and management partnership with Nvidia Corporation (NASDAQ: NVDA) earlier in February, its good news were dimmed by a light forecast, both for the current quarter and the full year. By deepening the partnership with Nvidia, Cisco got to focus on data centers. Cisco and Nvidia will provide easy to deploy and manage AI infrastructure solutions to data centers. Through their purpose-built Ethernet networking-based solutions, Nvidia and Cisco promise to enable the massive computing power that companies need to make it in the AI era.
Cisco’s Fiscal Second Quarter Highlights
For the quarter ended on January 27th , Cisco reported that revenue declined 6% YoY. Networking products brought $7.08 billion, slightly below StreetAccount’s $7.10 billion consensus estimate.
Net income also fell to $2.63 billion, with earnings per share falling ...