Cisco's AI Infrastructure Orders Surge to $9.3 Billion

Key Takeaways

• Cisco's AI infrastructure orders reached $9.3 billion for fiscal 2026, but its gross margin decreased.
• Seagate's AI-driven storage demand grew rapidly, with revenue from AI-related products increasing by 50%.
• SK Hynix is investing $720 billion in a massive buildout of memory factories in South Korea.
• CrowdStrike expanded its QuiltWorks program to small and mid-sized businesses.
• Claude AI powers a new open-source desktop application called Munder Difflin.
• Trend Micro provides AI-driven threat detection and response.
• Cisco's stock plummeted 8.4% due to concerns over profit margins.
• Seagate's gross margin increased by 10%.
• CrowdStrike's QuiltWorks program aims to secure frontier AI risks across every layer of the stack.
• SK Hynix aims to become a leading maker of high-bandwidth memory.

Cisco Stock Plunges as AI Hardware Squeezes Margins

Cisco Systems reported strong revenue and earnings, but its stock plummeted 8.4% due to concerns over profit margins. The company's AI infrastructure orders surged, but its gross margin decreased. Cisco's valuation leaves little room for excuses, and investors are questioning its ability to protect margins and turn AI dollars into profit.

Cisco Stock Drops Again as AI Hardware Squeezes Margins

Cisco's AI infrastructure orders hit $9.3 billion for fiscal 2026, but its adjusted product gross margin dropped to 64.8%. The company's stock fell 2% as investors questioned the profitability of its AI hardware sales. Cisco's valuation is high, and investors are waiting to see if the company can prove AI can expand profits.

Cisco Stock Tumbles 8.8% as AI Hardware Squeezes Margins

Cisco Systems' stock plummeted 8.8% due to concerns over profit margins. The company's AI infrastructure orders reached $4 billion in the quarter and $9.3 billion for fiscal 2026. Cisco's gross margin decreased, and investors are questioning its ability to protect margins.

Seagate's AI-Driven Storage Demand Surges

Seagate's AI-driven storage demand grew rapidly, with revenue from AI-related products increasing by 50% in the last quarter. The company's gross margin increased by 10%, and its operating margin increased by 15%. Seagate's strong cash flow and growing demand make it a potential winner in the AI infrastructure space.

Seagate Stock: A Future AI Winner

Seagate Technology's stock has been volatile, but its AI-driven storage demand is growing. The company's expanding margins and strong cash flow point to further growth. Seagate's stock may be undervalued, making it a potential future winner in the AI infrastructure space.

3 Japanese AI Stocks to Watch

Three Japanese AI stocks are standing out in the market: Trend Micro, which provides AI-driven threat detection and response; and two other companies that are directly tied to the ChatGPT and AI build-out. These stocks have growth potential and are worth considering.

Create a Reasoning-Focused LLM

This tutorial provides a practical guide to streaming, curating, and fine-tuning the SupraLabs reasoning corpus. It walks through an end-to-end workflow for working with the corpus, including quality filters and chat-based supervised fine-tuning.

CrowdStrike Expands QuiltWorks AI Security

CrowdStrike expanded its QuiltWorks program to small and mid-sized businesses, providing enterprise-grade AI security and remediation services. The program aims to secure frontier AI risks across every layer of the stack.

Claude AI Powers Desktop Computer Clones

A new open-source desktop application called Munder Difflin enables users with a Claude AI subscription to create digital clones that can control their computers and automate workflows. The application operates as an Electron-based desktop app that runs a multi-agent harness locally on a user's machine.

Betting on Tennis Over/Under Total Games

Calculating fair lines for tennis Over/Under total games involves analyzing player serve/return statistics, surface impact, and historical match data. Several factors significantly influence the number of games played in a tennis match, including player serve and return performance, surface type, player form and head-to-head, and player styles.

Enterprise AI's Hottest Job

The fastest-growing job in enterprise AI is the forward-deployed engineer, who makes software work inside large companies. Decagon, a startup, is betting that enterprise AI can become self-service fast enough to change its labor economics. The company claims that its product can help clients build and manage AI systems without needing an embedded engineer.

SK Hynix's $720 Billion AI Bet

SK Hynix is investing $720 billion in a massive buildout of memory factories in South Korea. The company is betting on AI-driven growth and aims to become a leading maker of high-bandwidth memory. The project includes a network of memory factories that will go into production in February.

Hunt for AI-Proof Trades

Convenience store stocks are having their moment as investors seek defensive plays due to market turbulence. Shares of convenience store companies are rising as investors look for more stable investments. The trend is driven by angst over the sustainability of the AI boom and geopolitical tensions.

Sources

• Cisco (CSCO) Stock Sell Off Puts AI Margin Strength Under Scrutiny
• Cisco Stock Drops Again as AI Hardware Squeezes Margins
• Cisco Stock Tumbles 8.8% as AI Hardware Squeezes Margins
• The AI Stock Nobody Is Talking About - but Could Be a Big Winner
• The AI Stock Everyone Knows - But Few See Becoming a Future Winner
• 3 Japanese AI Stocks With Growth That Outpaces The Market
• Create a Reasoning-Focused LLM: A Practical Guide to Streaming, Curating, and Fine-Tuning the SupraLabs Reasoning Corpus
• CrowdStrike’s Expanded QuiltWorks AI Security Push Might Change The Case For Investing In CRWD
• Claude AI Powers Desktop Computer Clones
• Betting Tennis Over/Under Total Games: A Data-Driven Approach
• Enterprise AI’s Hottest Job Just Found Its Biggest Skeptic
• An inside look at SK Hynix $720 billion AI-fueled buildout that's taking over South Korea
• Hunt for AI-Proof Trades Turns Convenience Shops Into Hot Stocks