Cisco Systems saw its stock price climb approximately 0.7% to $87.35 during Tuesday's trading session. The move followed the company's announcement of its latest artificial intelligence-focused networking hardware, the Silicon One G300 chip, alongside a new router designed for large-scale data center operations.
Targeting AI Infrastructure Demands
The newly introduced G300 chip is manufactured using Taiwan Semiconductor's advanced 3-nanometer process technology. Cisco claims the component can accelerate certain AI workloads by up to 28% by managing data traffic bursts more efficiently, with microsecond-level rerouting capabilities. The company stated the chip is scheduled to become available in the second half of 2026.
"We are focused on the complete end-to-end network efficiency," said Martin Lund, an executive vice president in Cisco's hardware division. The launch positions the networking giant more directly against competitors like Nvidia and Broadcom in the burgeoning market for AI data center infrastructure, where network performance has become a critical bottleneck.
Performance and Efficiency Claims
Cisco presented the G300 at its Cisco Live EMEA event in Amsterdam. The chip boasts a throughput rating of 102.4 terabits per second. The company also highlighted that a fully liquid-cooled system using the new technology could improve energy efficiency by nearly 70% while maintaining equivalent bandwidth.
Alongside the silicon, Cisco detailed new "AgenticOps" software features—automated agents for IT operations—across its networking, security, and observability platforms. Some capabilities for campus and branch networks begin rollout this month, with data-center features entering controlled availability in June.
The stock had already been trending upward, closing at a 52-week high of $86.78 on Monday, marking its third consecutive daily gain. Meanwhile, shares of rivals Nvidia and Broadcom edged lower during Tuesday's session.
Earnings and Market Outlook
The immediate focus for investors shifts to Cisco's upcoming fiscal second-quarter results, scheduled for release after the market closes on Wednesday. Analysts will be looking for commentary on how quickly these new product announcements might translate into tangible customer orders and revenue, especially given the chip's 2026 availability timeline.
Market observers note that data center design cycles are typically lengthy, and large customers may remain with existing platforms if the economic case for switching isn't compelling. Cisco's challenge will be to demonstrate it can deliver predictable, large-scale performance in a highly competitive and tested market.
