NASDAQ · AI datacenter Ethernet · in-house Silicon One

Cisco

A networking major that handles Ethernet networking for gigawatt-scale AI clusters with its in-house Silicon One switch silicon (G300, 102.4Tbps). As AI training clusters grow, demand for the high-bandwidth switches linking GPUs explodes — the datacenter Ethernet switch market grew 62% YoY in Q3 2025 — and Cisco targets enterprises, neoclouds and sovereign clouds beyond hyperscalers. But it outsources switch-chip fabrication to TSMC and optical modules to Fabrinet, depending on foundry and optics supply.

CSCO Updated Jul 12, 2026 3 AI consumers· 1 recurring

Per the valuechain.wiki graph, Cisco is directly linked to 2 companies (2 supply, 0 revenue relationships) and reaches 36 companies within two hops; the links are backed by 5 dated sources, 3 of them primary filings (as of 2026-07-12).

Annual return · 2026-07-10'21+45.8%'22-22.5%'23+9.3%'24+21%'25+33.5%YTD+59.8%
Money inHyperscalers · enterprise (AI networking)Market share ~62%Neoclouds · sovereign · telecom (networking)
CiscoDatacenter Ethernet +62% YoY
Money outFabrinetTSMCopticalcomponents · components (undisclosed)

Financials & Segments

  • Total revenue · Datacenter Ethernet +62% YoY (Q3 2025)
  • Customer concentration · Ethernet for gigawatt-scale AI clusters.
  • Segments · AI networking (Silicon One) · Switches/routers · Security/SW

Revenue from

  • Hyperscalers · enterprise (AI networking) High confidence· Market share ~62% · 2025 · datacenter Ethernet switch market growth (Q3 2025 YoY)
    Supplies Ethernet switches/routers for gigawatt-scale AI clusters — a direct beneficiary of the DC Ethernet market's +62% YoY growth.
    Confirms KO Wikipedia Published Jan 1, 2026: Cisco Systems (AI networking)
    Confirms EN SEC EDGAR Published Sep 1, 2025: Cisco annual report (10-K, SEC)
  • Neoclouds · sovereign · telecom (networking) Medium confidence
    Networking for neoclouds, sovereign clouds and telecoms.
    Confirms EN SEC EDGAR Published Sep 1, 2025: Cisco annual report (10-K, SEC)

Pays to

  • Fabrinet Medium confidence
    Outsources optical-module and transceiver manufacturing to Fabrinet — a key upstream dependence for AI-networking optics.
    Confirms EN MatrixBCG Published Jan 1, 2026: Fabrinet contract-manufactures optics for NVIDIA, Cisco, AWS, Lumentum
    Confirms EN SEC EDGAR Published Aug 18, 2025: Fabrinet FY2025 results (8-K)
  • TSMC Medium confidence
    Outsources in-house Silicon One switch chips to TSMC — dependent on foundry capacity and advanced nodes.
    Confirms EN SEC EDGAR Published Sep 1, 2025: Cisco annual report (10-K, SEC)
    Confirms EN Cisco Published Jan 1, 2025: Cisco Silicon One (self-designed networking silicon, fabbed at external foundry)
  • opticalcomponents · components (undisclosed) Low confidence
    Optics and components (e.g., Fabrinet).
    Confirms EN SEC EDGAR Published Sep 1, 2025: Cisco annual report (10-K, SEC)

Value-chain ripple (2 tiers)

Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.

CompanyChain'21'22'23'24'25YTD
Cisconode+45.8-22.5+9.3+21+33.5+59.8
TSMCbenef1+12.1-36.7+42.3+92.6+55.9+43.6
Fabrinetbenef1+52.7+8.2+48.4+15.5+107.1+3.5
SUMCO Corporationbenef2-4.3-3.9+21.3-48.1+41.7+225.8
GlobalWafersbenef2+26.9-29.9+14.3-39+48.9+171.6
Applied Materialsbenef2+83.6-37.5+68+1.1+59.6+135
Lam Researchbenef2+53.7-40.7+88.6-6.8+139.2+105
Onto Innovationbenef2+112.9-32.7+124.6+9-5.3+103.6
KLAbenef2+68-11.2+56+9.4+94.5+91
SCREEN Holdingsbenef2+40.7-13.2+220.1-24.1+84.9+86.3
Teradynebenef2+36.8-46.3+24.8+16.5+54.4+85.9
Resonacbenef2-2.6-4+37.5+30.3+137.9+80.4
Tokyo Electron (TEL)benef2+40.4-14.5+89.8-4.4+61.6+78.2
Qnity Electronicsbenef2·····+76.3
Entegrisbenef2+44.6-52.5+83.5-17.1-14.6+72.8
ASMLbenef2+64.1-30.5+39.9-7.7+55.8+68.6
Global Unichipbenef2+21.4+67.6+99.4-13.7+101.4+66.4
BESIbenef2+33.7-6.1+121.8-9.3+35+56.2
Fujimi Incorporatedbenef2+64.7-1.6+40.4-24.2+28.4+54.6
Shin-Etsu Chemicalbenef2+6.3+3.1+57.8-15.6+7.6+44
Tokyo Ohka Kogyo (TOK)benef2-2.7-3+63.8+4.3+111.5+42.9
Ebarabenef2+58.1+2.3+76.1+41+84+32.3
ASM Internationalbenef2+44.2+2.9+68.7+10.3+25.9+28.8
Lindebenef2+33.4-4.4+27.7+3.2+3.2+25.1
Cadence Design Systemsbenef2+36.6-13.8+69.6+10.3+4+22.9
Lasertecbenef2+78.9+2.4+57-60.6+138.9+22.4
Advantestbenef2+17-2.3+155.7+49.5+196+17.1
Air Liquidebenef2+14.1+7.9+20.9+8.5-4.8+12.5
Disco Corporationbenef2-6.6+27.7+218.5+11.6+49.6+10.2
EO Technicsbenef2+7.6-28.2+130.5-16.2+163.2+0.7
HPSPbenef2··+216.5-30.4+54.7-4.5
Synopsysbenef2+42.1-13.4+61.3-5.7-3.2-5.2
Photronicsbenef2+68.9-10.7+86.4-24.9+35.8-6.6
Leeno Industrialbenef2+21-5.3+18.3+9.5+150.1-30.3

YTD as of 2026-07-10 · source: Yahoo Finance

The 'connectivity' axis of the AI data center, handling gigawatt-scale AI-cluster Ethernet networking with its in-house Silicon One switch silicon. As GPU clusters grow, demand for the high-bandwidth switches linking them explodes — the datacenter Ethernet switch market's +62% YoY in Q3 2025 anchors the growth story — and it is widening customers into enterprises, neoclouds and sovereigns. Risks are supply-chain dependence (switch chips to TSMC, optical modules to Fabrinet) and hyperscalers' in-house designs and white-box competition. Upstream on the graph are TSMC (chips) and Fabrinet (optics); downstream is the cloud and enterprise demand building AI clusters.

Analysis generated from returns as of 2026-07-09

Analyst ratings

Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target $143 · Price $121.31 (07-10) · Upside +18%

BrokerRatingTargetPublished
KeyBanc Capital Markets · Brandon NispelOverweight$130Jun 25, 2026Report
Bank of America Securities · Tal LianiBuy$150Jun 8, 2026Report
Evercore ISI · Amit DaryananiOutperform$150Jun 3, 2026Report

Buy consensus is firming on AI networking momentum, with BofA and Evercore ISI both lifting targets to $150 in June 2026.

Analyses covering this node


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