Evercore ISI reiterated its Outperform rating and $150 price target for Cisco Systems Inc. (NASDAQ: CSCO) following the company’s expanded partnership with Super Micro Computer Inc. (NASDAQ: SMCI) to integrate Cisco’s Secure AI Factory with NVIDIA technologies.
The collaboration centers on Supermicro’s NVIDIA NVL72 rack-scale AI systems, which Cisco will support through liquid- and air-cooled configurations. The rack-scale architecture is slated for order availability starting October 2026, positioning Cisco as the first NVIDIA partner to deliver an NCP-compliant reference architecture using its AI Networking, Distributed Security, and Splunk platforms alongside NVIDIA AI Enterprise software.
Super Micro’s stock has gained 31.4% year-to-date, with a market capitalization of $24.45 billion as of the latest close at $37.87. The company reported fiscal fourth-quarter 2026 adjusted earnings per share of $1.70, exceeding the consensus estimate of $1.59, though revenue of $11.12 billion fell short of the $11.26 billion forecast due to delays in large customer projects. Supermicro also disclosed $60 billion in new AI infrastructure orders.
Needham maintained a Buy rating with a $46 price target on Super Micro, while Rosenblatt raised its target to $51 and lifted its fiscal 2027 revenue estimate to $68.5 billion and EPS forecast to $5.13. Bernstein, however, kept its Market Perform rating with a $42 target.
Cisco’s partnership expansion underscores growing enterprise demand for AI-optimized infrastructure, with Supermicro positioned as a key supplier in the NVIDIA ecosystem.
