Cisco’s Growing Subscriber Base and Intel’s Prospective New Chip Release
Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products.
Cisco aims to improve IT and the internet through further developing technologies such as 5G, Wi-Fi 6, and the 400 gigabit Ethernet. All these technologies could translate to greater efficiency across all industries, especially given a fast-paced adoption of hybrid cloud networks, as well as increasing participation in public cloud infrastructure which Cisco is an industry leader.
Cisco’s products have good margins with their software division rapidly growing and just in the last quarter, producing $4 billion in software revenue – a 13% gain year over year and contributing to close to 30% of the company’s total revenue. On top of this, Cisco has seen growing subscriptions with 80% of software sales coming from subscriptions.
Intel is an American multinational corporation and technology company. Intel supplies microprocessors for computer system manufacturers such as Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors, and other devices related to communications and computing.
Intel is set to release a new version of a Xeon server chip line in early 2022, the chip is code-named “Sapphire Rapids” and will enable Intel to widen its reach in A.I and boost their lead in A. I performance. In fact, the chip is expected to improve A.I performance by 8 times and provide a major competitive advantage for Intel.
Intel has also agreed to use SiFive’s RISC-V IP which could serve as a first step to address demands to produce chips with equal performance but lesser power consumption.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.