Research & Invest
Investor, Institutional Asset Management Background
Cisco's business is on fire, with soaring purchase commitments pointing to strong demand ahead. Per Wells Fargo, fiscal Q4 purchase commitments reached $16.033B, up 59% quarter over quarter and 153% year over year, accelerating from 73%, 56% and 47% in prior quarters. Management said silicon supply is secured through 2026 with 2027 negotiations under way, and its direct management of silicon design gives it end-to-end control. x.com x.comÂ
Cisco's revenue growth is accelerating to 13-16% because Jeetu Patel got it into Meta and AI infrastructure, now with optics, despite CEO Chuck Robbins' constant focus on margins over growth. That put Cisco in the door of one of the biggest hyperscaler-type spenders as Anthropic, OpenAI and Meta AI grow. If Patel is appointed CEO, the stock might go to $180, or 25-26x $7 EPS. x.comÂ
Cisco's networking supercycle is no longer a pitch but booked business. Cisco guided fiscal 2027 AI infrastructure revenue to $7.5bn, almost double fiscal 2026, and that revenue is already booked. x.comÂ
Cisco has begun a new run after a massive technical breakout from more than 25 years below its previous all-time high, though it likely won't move as fast as AI infrastructure, chip and memory names. Its active venture arm is expanding aggressively into AI and security, including the $28 billion Splunk acquisition, the $400 million purchase of AI security startup Astrix and $1 billion invested in startups such as Cohere, Mistral AI and Scale AI. x.comÂ
Cisco's AI infrastructure business is becoming a massive growth engine, driving a Q4 double beat and raise. Ahead of the print, options flow showed a $9.6M bullish bet and sizable put selling, backing a long-held conviction long. x.com x.com x.comÂ
Cisco looks attractive as a winner in the AI revolution outside the hyperscalers. x.comÂ
Nvidia in 2026 is not Cisco in 2000: it grows over 100% a year at far lower multiples, making it still an amazing buy and likely the first $10T company, possibly by 2028. Cisco peaked near 200x earnings, 30x sales and 176x FCF on 55% growth; Nvidia trades at 30x, 18x and 45x with 75% gross margins. Forward, it is about 20x earnings and 22x FCF, near all-time lows, and supply constraints and contracts let it guide a full year ahead for the first time. A $6T cap would not mean overvalued. x.com … Show more
Dell, Cisco and HPE are overlooked winners of the next AI wave because their installed bases will be key for tech infrastructure in the AI revolution. x.com x.comÂ
Broadcom is one of the easiest AI stocks to understand, built on custom silicon, networking and connectivity, with revenue set to double two years straight. Revenue is projected to go from $58B in FY26 to $115B in FY27 and $230B in FY28. Six customers drive that growth, including Google, Anthropic and OpenAI, which is both the bull case and the risk. x.comÂ
TSMC's capex plans suggest the AI chip trade is not over for semiconductors, Nvidia, AMD and Micron. CFO Wendell Huang cites robust multi-year demand, including agentic AI, behind $60-64 billion of 2026 capex; TSMC expects 2026-28 spending to be even more significantly higher than in the prior three years. Hyperscaler earnings should reinforce the higher AI capex trajectory. CoreWeave-driven fears feel overdone, though the neocloud model does not appeal long term. x.com x.comÂ
Nvidia is still growing into its AI valuation, unlike Cisco in 2000, which was growing nothing but a tech bubble. The comparison between today's Nvidia and 2000's Cisco cuts in Nvidia's favor because its valuation is backed by growth rather than bubble pricing. x.comÂ
The market may still be underestimating Marvell as it becomes a key supplier of custom silicon and connectivity for the AI build-out. At its Investor Day, Marvell put its addressable market at about $400 billion by 2030, targeted about $20B of FY28 revenue and said revenue could reach $70-90B by FY31. Last quarter revenue rose 37% to $2.74B on AI and data-center demand, and Nvidia's Jensen Huang reportedly called Marvell the next trillion-dollar company. x.com x.comÂ
