Cisco Systems (NASDAQ:CSCO) shares rose 1.6%, while Broadcom (NASDAQ:AVGO) slipped 0.7% on Wednesday after Cisco unveiled new chip technology designed to connect AI data centers, positioning itself as a direct challenger to Broadcom in the rapidly expanding AI networking space.
As reported by Bloomberg, Cisco introduced its Silicon One P200 chip and 8223 routing systems, which are engineered to dramatically accelerate data transfers over long-haul optical cables that link AI data centers located hundreds of miles apart. The company noted that the new components are smaller, faster, and more power-efficient than previous versions, specifically optimized for AI training workloads that demand massive data throughput.
The announcement marks a clear competitive push against Broadcom, which launched its Jericho networking chip in August, offering similar multi-site AI connectivity capabilities. Although Cisco has historically played a smaller role in AI-specific networking, the company now appears to be ramping up efforts to deliver its technology to customers ahead of rivals, signaling a strategic expansion into one of the most critical infrastructure markets driving the AI boom.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.