Cisco breaks hardware rule with Supermicro AI server partnership

M&A · PartnershipProduct / Tech Impact 4
โดย TheStreet·US·Read original
Summary · why it matters

Cisco Systems has broken its biggest hardware rule by selling AI server hardware directly through a new partnership with Super Micro Computer, pulling the company deeper into a business it traditionally left to others. Announced Tuesday, Cisco is expanding its Secure AI Factory with Nvidia architecture to include Supermicro's liquid and air cooled server systems, which will be sold and validated as part of Cisco's own AI infrastructure portfolio. The combined stack becomes compliant with Nvidia's Cloud Partner program, a credential neoclouds and sovereign cloud operators look for before signing large contracts. Cisco President and Chief Product Officer Jeetu Patel said the industry is at the state of "one of the largest datacenter buildouts in history." Cisco shares rose roughly 1% Tuesday, while Supermicro jumped about 9%. Twenty-six analysts polled by S&P Global rate Cisco a consensus Buy with an average price target near $133, and Morgan Stanley reiterated an Overweight rating and a $135 price target. Supermicro's fiscal fourth quarter revenue reached $11.1 billion, up from $5.8 billion a year earlier, with gross margin recovering to 17.5% from 9.5%, and the company guided fiscal 2027 revenue to a range of $65 billion to $72 billion. Cisco disclosed no committed order volume or pricing, and Supermicro's systems become available through Cisco's channel starting in October 2026.

Impact on stocks 4

Artificial Intelligence▲ · 3 stocks
Super Micro Computer Inc
SMCI
▲ PositiveDemandrelevance

Supermicro partners with Cisco to sell its AI servers, expanding market reach and driving demand.

Cisco Systems Inc
CSCO
▲ PositiveDemandrelevance

Cisco expands AI server portfolio via Supermicro partnership, tapping into large datacenter buildout demand.

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Nvidia architecture is central to the AI server systems, benefiting from increased adoption.

Financials▲ · 1 stocks

Theme Impact 5

Related news

▲impact 5

US Hyperscalers to Spend Up to $725 Billion on AI Infrastructure in 2026

The top five US hyperscalers are projecting a combined capital expenditure of $660 billion to $725 billion for 2026, nearly double their 2025 outlays, as the AI build-out shifts from software to physical infrastructure. Microsoft is guiding for roughly $175 billion in adjusted capital expenditure for both FY2026 and FY2027, with two-thirds of quarterly spend going to short-lived assets like CPUs and GPUs and the rest to long-lived data center infrastructure, and it added 1 gigawatt of capacity in Q3 FY2026, doubling its global footprint in two years. Amazon AWS has raised its 2026 capex guidance to approximately $220 billion, with CEO Andy Jassy saying AI capacity is expected to remain constrained through 2027 and contracted demand extending into 2028. Meta saw profit drop 14% in Q2 2026 despite a 28% revenue increase as its build-out, including a 1 gigawatt data center in Ohio and a Louisiana facility that could scale to 5 gigawatts, compressed margins, while Alphabet raised its 2026 capex guidance to as much as $205 billion and its Google Cloud backlog more than doubled year-over-year to $240 billion. The Stargate joint venture involving Oracle, OpenAI and others targets up to $500 billion in infrastructure investment by 2029, and Oracle's FY2026 capex reached $55.7 billion, more than doubling from the previous year.
AMZN ▲GOOG ▲META ▼MSFT ▲ORCL ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure ▲Energy Transition & Power Demand ▲
Yahoo Finance·5hRead more →
3impact 4

HPE's $700 Million AI Networking Backlog Tests Supply Chain

Hewlett Packard Enterprise is sitting on a record pile of AI networking orders it cannot yet ship, and the gap between bookings and revenue is now the central question for the stock. Orders for the Networks for AI portfolio reached $700 million in fiscal Q3 2026, a new high, after the company blew past its cumulative fiscal 2026 target of at least $2 billion and raised that target to $2.5 billion to $3 billion. The hardware behind those orders includes routers and switches HPE is supplying to Oracle for one of the largest AI cloud infrastructure build-outs, work that extends more than a decade of engineering between Oracle and Juniper Networks, the business HPE acquired last year. Networking revenue rose 10% in fiscal Q3 2026 against a prior-year base that includes Juniper Networks, while networking orders rose 36%, and the segment brought in $2.9 billion of the $12.2 billion in total revenue HPE reported for the quarter. Management attributes the gap to supply, citing memory and wafer capacity that have gated supply since the start of fiscal 2026, and HPE has more than doubled its networking purchase commitments quarter over quarter while signing multiyear supply agreements to lock capacity. Networking revenue growth is guided to 11% to 13% in fiscal Q4 2026 and 14% to 17% in fiscal 2027, with the next scheduled look at the business coming at the Networking Investor Day on September 30, 2026.
HPE ORCL ▲
Artificial Intelligence ▲Semiconductors ▲Cloud & Digital Infrastructure
Yahoo Finance·22hRead more →
▲impact 4

Meta Raises 2026 Capex Guidance to $130 Billion to $145 Billion

Meta Platforms raised its full-year 2026 capital expenditure guidance to a range of $130 billion to $145 billion, including principal payments on finance leases, narrowed from a prior $125 billion to $145 billion range in its Q2 2026 report on July 29, 2026. The forward guidance nearly doubles Meta's full-year 2025 capex of $72.215 billion, and Q2 capital expenditures alone reached $31.1 billion, driven by servers, data centers, and network infrastructure. To fund the build, Meta ended Q2 with $90.3 billion in cash and marketable securities and $83.7 billion in debt, and announced a strategic venture with BlackRock to develop a one gigawatt data center in El Paso, Texas. CFO Susan Li said Meta is demand constrained today, and CEO Mark Zuckerberg said the company is receiving quite a number of offers at a meaningful premium over what we paid for the compute, framing direct compute sales as one leg of a portfolio that also includes APIs, business agents, productivity tools, and subscriptions. The strain is visible in the quarterly numbers: Q2 free cash flow was $784 million, down 91.31% year over year, and operating margin compressed to 31% from 43%, even as Q2 revenue reached $60.801 billion, up 27.96% year over year and above the $60.286 billion consensus, with advertising revenue of $59.4 billion, up 27%.
META BLK ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure ▲Energy Transition & Power Demand ▲
24/7 Wall St.·23hRead more →
© 2026 MarketDXNews