We recently published a list of 10 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Cisco Systems, Inc. (NASDAQ:CSCO) stands against other AI stocks on latest news and ratings.
Elon Musk recently sparked skepticism in the AI community by claiming that companies funding the Stargate initiative lack the funds to do so. The Stargate initiative is a $500 billion artificial intelligence project recently announced by President Donald Trump. The project aims to build new AI data centers in the US.
Three prominent figures in the initiative are SoftBank CEO Masayoshi Son who will handle the financing, CEO Sam Altman of OpenAI who will be contributing his overall AI expertise, and Oracle executive chairman Larry Ellison who will oversee the buildout. All three joined President Trump on January 21 when he made the Stargate announcement.
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Musk has claimed that this initiative doesn’t have the necessary funding in place, which in turn sparked a dispute between him and Sam Altman. Altman has refuted Musk’s claim, asserting that the funding is in place and that the work has already started. Larry Ellison, in particular, has noted that 10 data centers, each 500,000 square feet, are already under construction in Abilene, Texas, and that 10 more are in the pipeline.
Musk is currently leading Trump’s new government efficiency advisory board, DOGE. He also shares a tense relationship with Altman and is engaged in an ongoing lawsuit with OpenAI. In response to Musk’s claims, Trump answered questions from reporters at the White House, dismissing the criticism. Trump was asked if Musk’s criticism of the deal was a bother to him.
“It doesn’t. He hates one of the people in the deal,” Trump said of Musk. “People in the deal are very, very smart people. But, Elon, one of the people he happens to hate. I have certain hatreds of people, too”.
-President Donald Trump, as reported on Reuters.
Regarding the claims regarding the insufficient funding, Trump said that he doesn’t know but he hopes that they do.
“I don’t know if they do, but you know, they’re putting up the money. The government’s not putting up anything, they’re putting up money. They’re very rich people, so I hope they do”.
A Trump adviser also wondered whether the public dispute may imply an end for Trump and Musk.
“The end may be in sight,” the adviser said.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Engineers using the latest Cisco TelePresence technology to collaborate with colleagues around the world.
Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that provides information technology and networking services. On January 28, Exane BNP Paribas analyst Karl Ackerman upgraded the stock to “Outperform” from Neutral with a price target of $72, up from $57. According to the firm, several catalysts are playing out in favor of Cisco Systems (NASDAQ:CSCO). These catalysts have the potential to boost Cicso’s revenue and earnings growth ahead of expectations. The analyst also told investors in a research note that ethernet “will start to flourish” in backend artificial intelligence networks this year. As such, the firm is “encouraged” to see Cisco’s growing presence at Meta Platforms with the 8501 switches that should begin to ramp in volume in Q1.
Overall, CSCO ranks 4th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of CSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
