NVIDIA Corporation (NASDAQ: NVDA) stock witnessed a pullback after surpassing the $700 mark despite its recent agreement with Cisco Systems to integrate its hardware into data-center equipment. Profit-taking pressures tempered the chip maker’s rally.
NVIDIA Corporation (NVDA) and Cisco Systems (NASDAQ: CSCO) teamed up to make Artificial Intelligence (AI) more accessible for businesses everywhere. The collaboration aims to simplify the setup process for companies to get their hands on AI computing setups, extending the technology’s reach beyond major data center operators.
This partnership will see Cisco incorporating Nvidia’s AI-centric technology into its networking solutions. Moreover, this strategic collaboration will create a new distribution channel for NVIDIA’s technology and allow Cisco to tap into the burgeoning demand for AI solutions, which has propelled Nvidia to the status of the most valuable chipmaker in the world.
NVIDIA CEO Jensen Huang emphasized the significance of the collaboration, stating,
“Working closely with Cisco, we’re making it easier than ever for enterprises to obtain the infrastructure they need to benefit from AI, the most powerful technology force of our lifetime.”
Cisco plans to market M7 server computers powered by NVIDIA’s advanced processors. These servers will be complemented by NVIDIA’s software, AI models, and development tools alongside Cisco’s cloud software and services for system management and oversight.
Commenting on the partnership, Citi analysts said:
“We continue to view ANET as the incumbent AI data center switch provider and do not see any change to their position in light of this announcement.”
NVIDIA (NASDAQ: NVDA) Stock Price Action
NVDA stock declined 1.60% to close at $682.23 on Tuesday. The traders had exchanged hands with 67,775,733 (67.77 million) shares compared to the average daily trading volume of 42.78 million.