Cisco shares jump as Nvidia chief names it key partner in AI cybersecurity

Cisco Systems saw its shares climb by more than 3.7 per cent to close at $111.45 on Friday, driven by an endorsement from Nvidia chief executive Jensen Huang, who named the networking heavyweight as a key partner in what he expects to be artificial intelligence’s next major growth market: cybersecurity.

Speaking about the future direction of the AI industry, Huang identified digital defence as the logical successor to the current wave of AI-assisted software coding. As first reported by Business Insider, the Nvidia chief noted a fundamental difference in how security applications must operate compared to other AI tools. While generative AI models like coding assistants wait passively for a user's prompt to act, cybersecurity systems have to remain active around the clock, constantly monitoring networks and anticipating threats without human intervention.

For Cisco, the alliance with Nvidia and the focus on security comes at a time when the company is already capitalising on the massive build-out of AI infrastructure. Cisco secured $9.3 billion in AI-related orders during its 2026 fiscal year. That momentum accelerated sharply toward the end of the year, with $4 billion of those orders booked in the fourth quarter alone.

This infrastructure boom has already delivered a significant lift to Cisco's top line. The company's quarterly revenue climbed to $17.25 billion, up from $14.67 billion in the same quarter of the previous year.

Integrating advanced AI cybersecurity into its product suite offers Cisco a highly lucrative opportunity. While hardware sales provide immediate revenue spikes, establishing automated, AI-driven security services allows Cisco to layer predictable, high-margin recurring software subscriptions on top of its physical hardware base.

Yet despite the market's enthusiasm, some financial analysts suggest the stock may have run ahead of its fundamentals. Investment platform GuruFocus raised a cautionary flag, noting that Cisco’s Friday closing price of $111.45 stands nearly 50 per cent above its calculated 'GF Value' estimate of $74.31.

Market observers also point out that while Huang’s public endorsement is a powerful marketing signal, it does not represent a formal sales contract. Cisco's primary challenge going forward will be execution. The company must successfully convert its dominant physical position inside AI data centres into paid, active protection for the vast amounts of proprietary data and heavy workloads migrating through those networks.