We recently published an article titled 13 Best Internet of Things (IoT) Stocks to Buy Now. On February 12, Belden Inc. (NYSE:BDC) reported fourth-quarter results that exceeded expectations, with revenue of $720.12 million compared to consensus estimates of $696.97 million. Management characterized 2025 as a year of measurable progress and expanded market traction, supported by record orders and operational execution. Full-year revenue reached a record of approximately $2.7 billion, representing 10% year- ...

Financial giants have made a conspicuous bullish move on Cisco Systems. Our analysis of options history for Cisco Systems (NASDAQ:CSCO) revealed 11 unusual trades.Delving into the details, we found 63% of traders were bullish, while 27% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $342,104, and 7 were calls, valued at $372,260.Expected Price MovementsAnalyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price ...

Core Insights - The Active Copper Cable Multi-Source Agreement (ACC-MSA) has been established to enhance interoperability and innovation in next-generation copper interconnect solutions [1][5] - The consortium aims to address key industry challenges by reducing power, cost, and latency while improving performance for high-speed copper interconnects [1][5] Group 1: Consortium Formation - Thirteen global leaders in networking, semiconductors, and cabling have formed the ACC-MSA, co-chaired by MACOM and Semtech [2] - Founding members include major companies such as AMD, Cisco, Dell Technologies, NVIDIA, and others [2] Group 2: Technical Focus - The initial focus of the ACC-MSA is on optimized copper interconnects featuring integrated linear equalizers [3] - Specifications will cover electrical, firmware, and testing requirements to ensure interoperability among various vendors [3] Group 3: Industry Impact - The integration of linear equalizers is expected to extend the reach of copper cabling, reduce thickness, and lower power consumption and latency compared to traditional DSP-based solutions [4] - AI hardware infrastructure spending is projected to exceed $1 trillion by 2029, with networking infrastructure nearing $200 billion, highlighting the importance of ACCs in future deployments [4]

Group 1: Capital Expenditures and Market Trends - Big tech companies plan to spend over $700 billion on capital expenditures this year, primarily for building and outfitting data centers for AI training and inference [1] - A significant portion of this spending will be directed towards purchasing GPUs and custom AI accelerator chips, benefiting major semiconductor stocks [1] Group 2: Networking Equipment and Arista Networks - Networking equipment is a crucial component of data centers, often overlooked amid the focus on chip stocks, with Arista Networks being a leading company in this space [2] - Arista Networks has traded sideways over the last six months, with shares currently available for less than $150, presenting a potential buying opportunity [2] Group 3: Market Dynamics and Growth Projections - The networking speed requirements for AI training and inference are significantly higher than traditional cloud computing, necessitating high-speed networking to optimize server investments [5] - Arista Networks has captured a 39% market share in Ethernet switches with speeds of 100-gigabits-per-second and faster, surpassing Cisco Systems [6] - The market for data center Ethernet switches is projected to grow from $20 billion in 2024 to $100 billion by 2030, driven entirely by high-speed networking equipment [6] Group 4: Company Performance and Revenue Growth - Arista Networks is expected to continue gaining market share in the growing high-speed networking market, maintaining best-in-class performance and rolling out new, faster equipment [7] - Management has increased its 2026 revenue growth outlook to 25%, up from a previous estimate of 20%, with AI spending being a significant driver [8] - The company aims for AI-related revenue to more than double to $3.25 billion this year [8]

Economic Indicators - The Q4 GDP report is low, and revisions are expected, potentially drifting higher due to the impact of the government shutdown [2][6] - Core PCE inflation for December was slightly above expectations at 2.9%, indicating a potential cooling of inflation [3][4] - Higher frequency data, such as the Philadelphia Fed prices, suggest inflation is cooling, with a year-over-year inflation rate of 0.7% [5][6] Market Reactions - The market is showing a mixed reaction, with equities feeling jittery while precious metals are rising [8][9] - There is a notable market cap mismatch as money moves out of larger tech companies into smaller markets, leading to outsized moves in precious metals and industrials [10][11] Sector Performance - Sectors like materials, energy, staples, and industrials are outperforming, indicative of a late bull cycle rotation that may continue [12][13] - Earnings growth across sectors is exceptional at 14%, with a cyclical acceleration expected [13][22] Company Insights - Eli Lilly is highlighted for its obesity treatment pipeline, particularly the upcoming release of Orphogon, which is expected to be well-received [15][16] - Coherent is well-positioned to benefit from increased demand in networking equipment, with a 25% premium over pre-AI multiples [17][19] - Arista Networks is expected to continue outperforming, with recent earnings guidance above market expectations and new customer acquisitions [19][21]

Last week, I published The Latest Thoughts From American Technology Companies On AI (2025 Q4). In it, I shared commentary in earnings conference calls for the fourth quarter of 2025, from the leaders of US-listed technology companies that I follow or have a vested interest in, on the topic of AI and how the technology could impact their industry and the business world writ large. A few more technology companies I’m watching hosted earnings conference calls for 2025’s fourth quarter after I prepared the arti ...

Core Viewpoint - Cisco Systems (CSCO) is showing potential for investment due to a recent breakout above the 50-day moving average, indicating a short-term bullish trend [1] Group 1: Technical Indicators - CSCO has reached a key level of support and recently broke out above the 50-day moving average, which is a significant technical indicator for determining support or resistance levels [1] - The 50-day simple moving average is highlighted as a primary indicator for identifying trends in securities [1] Group 2: Stock Performance - Over the past four weeks, CSCO shares have increased by 6.1%, indicating positive momentum [2] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for continued upward movement [2] Group 3: Earnings Estimates - Positive earnings estimate revisions support the bullish outlook for CSCO, with no estimates decreasing in the past two months and six estimates increasing [2] - The consensus estimate for CSCO has also seen an increase, reinforcing the positive sentiment around the stock [2] Group 4: Investment Outlook - The combination of favorable earnings estimate revisions and the technical breakout suggests that investors should monitor CSCO for potential gains in the near future [3]

Key Takeaways ANET delivered record Q4 revenues of $2.49B and non-GAAP EPS of 82 cents, beating estimates.Arista's 2.0 strategy and cloud, AI networking demand are driving steady top-line growth.ANET faces margin pressure from rising costs, supply bottlenecks and elevated inventory levels.Arista Networks, Inc. (ANET) reported strong fourth-quarter 2025 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Quarterly revenues surged to $2.49 billion from $1.93 bi ...

Core Insights - Cisco Systems, Inc. (NASDAQ:CSCO) is recognized as one of the 14 best cloud computing stocks to buy currently [1] Group 1: Analyst Ratings and Price Targets - UBS raised its price target for Cisco's stock to $95 from $90 while maintaining a "Buy" rating, citing increased AI order momentum that enhances revenue visibility for FY 2026 and growth potential for FY 2027 [3] - JPMorgan also increased its price objective for Cisco's stock to $95 from $90, keeping an "Overweight" rating, noting that the stock is near its peak valuation multiple but has potential for upside due to revenue growth acceleration [4] Group 2: Strategic Partnerships and Business Focus - Cisco's partnership with Nvidia is expected to facilitate enterprise AI adoption in the future [5] - The company specializes in designing, developing, and selling technologies that power, secure, and derive insights from the internet, offering products such as data center switching, network security, and identity and access management [5]

Core Insights - The article discusses the transformation from explicit programming to implicit programming, emphasizing the need for companies to adapt to AI technologies and integrate them into their processes to enhance efficiency and innovation [6][10][19]. Group 1: Transition to Implicit Programming - Companies are moving from explicit programming, where specific instructions are given, to implicit programming, where the intent is communicated to the computer, allowing it to solve problems autonomously [6][10]. - AI advancements are expected to increase computational capabilities by a factor of one million over the next decade, compared to the traditional Moore's Law, which predicts a tenfold increase in the same period [6][25]. - Organizations should foster a culture of experimentation with AI, allowing employees to explore various models in a safe environment, as innovation often occurs outside of strict control [21][22]. Group 2: AI Integration and Enterprise Transformation - The concept of "AI in the loop" is introduced, suggesting that AI should be integrated into business processes to capture employee experiences and enhance company knowledge [49]. - Companies must identify their core competencies and focus on impactful work rather than getting bogged down by the initial ROI of new technologies [21][22]. - The collaboration between Cisco and NVIDIA aims to create a new computing stack that integrates AI capabilities while maintaining control, security, and manageability [19][20]. Group 3: The Future of AI and Business - The future of AI is seen as generative rather than retrieval-based, where software adapts to different contexts and user needs in real-time [33][39]. - The article highlights the importance of understanding the physical world and causal relationships in developing next-generation AI, termed "Physical AI" [42][43]. - Companies are encouraged to leverage their domain expertise and knowledge to effectively communicate their needs to AI systems, thus enhancing their competitive edge [44][45].