Core Insights - CrowdStrike and Cisco Systems are prominent players in the cybersecurity sector, with CrowdStrike focusing on endpoint protection and AI-native cloud security through its Falcon platform, while Cisco is enhancing its offerings in Threat Intelligence, Detection, and Response [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2030, driven by increasing complex attacks such as credential theft and social engineering [2] CrowdStrike Analysis - CrowdStrike's Falcon platform is recognized as the first multi-tenant, cloud-native security solution, securing various environments and endpoints [4] - The platform offers 29 cloud modules under a subscription model, with subscription sales increasing from 72% in fiscal 2017 to 95% in fiscal 2025 [5] - In Q3 fiscal 2026, Annual Recurring Revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing over 200% year-over-year, indicating strong customer value perception [6] - However, CrowdStrike's revenue growth has decelerated from over 35% year-over-year in fiscal 2024 to an expected 21-22% in fiscal 2026, with projected revenues between $4.797 billion and $4.807 billion [7] Cisco Systems Analysis - Cisco Systems is expanding its security business with new products like Secure Access and AI Defense, achieving good customer adoption with nearly 3,000 customers purchasing new solutions in Q1 fiscal 2026 [8][10] - The acquisition of Splunk has contributed to strong growth in ARR and performance obligations, with significant deals enhancing Cisco's security portfolio [9] - Cisco's new products, such as Cisco Unified Edge and Cisco Data Fabric, are designed to support AI-related needs, further strengthening its market position [11][12] Earnings Estimates Comparison - CrowdStrike's fiscal 2026 earnings estimate is $3.71 per share, reflecting a year-over-year decline of 5.6% [13] - In contrast, Cisco's fiscal 2026 earnings estimate is $4.10 per share, indicating a year-over-year increase of 7.61% [14] Price Performance and Valuation - Over the past six months, Cisco shares have risen by 11.2%, while CrowdStrike shares have decreased by 5.8% [16] - Cisco is trading at a forward sales multiple of 4.81X, significantly lower than CrowdStrike's 19.75X, making Cisco more attractive for value-seeking investors [17] Conclusion - Cisco Systems has a competitive edge over CrowdStrike due to its strong security portfolio and reasonable valuation, making it an appealing option for investors looking for growth in the cybersecurity sector [20][21]

Core Insights - Cisco has announced a multi-year partnership with Georgetown University to implement one of the largest Wi-Fi 7 initiatives in higher education, modernizing the campus network and enhancing digital experiences [1][5]. Group 1: Partnership and Deployment - The collaboration will feature a significant rollout of Wi-Fi 7 technology across various campus locations, including classrooms, dorms, and stadiums, positioning Georgetown as a leader in wireless innovation [1][2]. - Georgetown University is investing in a future-ready network to support its academic mission, enabling faster speeds and lower latency for real-time information retrieval [2][3]. Group 2: Network Infrastructure and Security - Cisco's solutions are designed for high-density environments, providing automation and advanced analytics for real-time insights into network performance, which simplifies operations and enhances user experience [3][4]. - The university is adopting a multi-layered security framework powered by Cisco's portfolio, ensuring the protection of digital assets and campus community [4]. Group 3: Broader Impact and Future Initiatives - The partnership includes Cisco serving as the presenting partner of the "Hoya Forward" platform, which will focus on innovation and preparing students for the future through technology [5]. - This collaboration follows Cisco's recent partnership with Monumental Sports and Entertainment, which is undergoing an $800 million transformation, further showcasing Cisco's commitment to enhancing connectivity in high-tech venues [6].

Core Viewpoint - Cisco Technologies has obtained a patent titled "Extending Cluster Member Eligibility to Additional Computing Resources," with the authorization announcement number CN113039520B, and the application date is November 2019 [1] Group 1 - The patent indicates Cisco's ongoing innovation in expanding computing resources within its cluster technology [1]

Summary of the Americas Thematic Focus List Conference Call Industry and Company Overview - **Industry**: The thematic focus is on various sectors across North America and Latin America, particularly in technology, energy, healthcare, and education. - **Companies Featured**: The focus list includes notable companies such as Amazon, Microsoft, NVIDIA, Eli Lilly, and Walmart, among others. Key Themes for 2026 1. **Tech Diffusion**: Emphasizes the rapid adoption of AI technologies across various sectors, with significant implications for productivity and competitive dynamics [12][14]. 2. **The Future of Energy**: Focuses on the increasing demand for energy driven by AI infrastructure and the transition to renewable energy sources [12][17]. 3. **The Multipolar World**: Highlights the shift towards localized supply chains and national economic security, impacting multinational corporations [12][13]. 4. **Societal Shifts**: Explores the implications of demographic changes, AI-driven employment disruption, and evolving consumer preferences [12][18]. Americas Thematic Focus List - **List Composition**: The focus list includes 18 high-conviction stock ideas, with a target holding period of 12-18 months [9][20]. - **Key Companies on the List**: - **Amazon (AMZN)**: Positioned as a leader in AI infrastructure, with a projected 32% upside to a price target of $238.18 [23]. - **Microsoft (MSFT)**: Expected to capture significant AI spending, with a 42% upside to a price target of $456.66 [23]. - **Eli Lilly (LLY)**: A leader in the GLP-1 market, with a 25% upside to a price target of $1,032.97 [23]. - **Walmart (WMT)**: Leveraging AI for operational efficiency, with a 13% upside to a price target of $119.20 [23]. Methodology and Specifications - **Focus List Size**: 15-20 stocks, with equal weighting upon construction [21]. - **Sector Weights**: No fixed sector weights, aiming for diversification [21][22]. - **Regional Weights**: Targeting 80-85% in the USA and 15-20% in Latin America [28]. Important Insights and Data - **Amazon's Growth**: Amazon's custom silicon strategy has grown 150% sequentially, indicating strong demand for its AI capabilities [29]. - **Eli Lilly's Market Potential**: The global diabesity market is projected to exceed $150 billion by the early 2030s, with significant growth opportunities for Eli Lilly [39]. - **NVIDIA's Dominance**: NVIDIA is positioned to capture a significant share of the projected $3-4 trillion in annual AI infrastructure spending by the end of the decade [53]. - **Walmart's AI Strategy**: Walmart's AI initiatives have led to a 50% automation rate in its supply chain, significantly reducing delivery costs [68]. Conclusion The Americas Thematic Focus List presents a strategic overview of high-conviction investment opportunities across key sectors, driven by transformative themes such as technology diffusion and energy transition. The insights provided highlight the potential for significant growth and the evolving landscape of investment in the Americas.

Core Viewpoint - Cisco Systems, Inc. has shown significant improvement in its performance and market position after struggling for years to adapt to new technologies, particularly AI, and has recently started to attract new clients from competitors [1] Group 1: Company Performance - Cisco has experienced ups and downs, with a notable recovery in the second half of 2024, marking a turnaround in its stock performance [1] - The company has been delivering impressive financial results over the past few quarters, indicating a successful reinvention and adaptation to the modern market [1] - Cisco took approximately 25 years to regain its peak stock value from the dot-com era, highlighting the long journey of recovery and growth [1] Group 2: Market Dynamics - The stock had a strong performance in the first 11 months of the previous year but faced a significant decline in December, which was unexpected and correlated with a gap fill from a rally in November [1] - Cisco's late entry into the AI sector has been acknowledged, but the company is now effectively competing and gaining market share [1]

Group 1 - Cisco Systems (CSCO) is positioned as a stable network equipment manufacturer with potential for growth driven by AI trends, expecting a year-over-year growth of approximately 6-7% [1] - The company employs a value investing approach, focusing on robust business models and strategic foresight to identify high-growth opportunities across various industries [1] - The discounted cash flow (DCF) valuation methodology is primarily used for analysis, complemented by business model frameworks from prestigious institutions for a comprehensive understanding of intrinsic value and strategic positioning [1]

Group 1 - Cisco Systems (CSCO) is positioned as a stable network equipment manufacturer with growth potential linked to AI advancements, expecting a year-over-year growth of approximately 6-7% [1] - The company employs a value investing approach, focusing on robust business models and strategic foresight to identify high-growth opportunities across various industries [1] - The discounted cash flow (DCF) valuation methodology is primarily used for analysis, complemented by business model frameworks from prestigious institutions for a comprehensive understanding of intrinsic value and strategic positioning [1]

Core Insights - Dell Technologies (DELL) and Cisco Systems (CSCO) are key players in the AI infrastructure market, with DELL focusing on AI-optimized servers and Cisco on high-performance networking and security solutions [1][2] AI Infrastructure Market Overview - AI infrastructure spending is projected to exceed $758 billion by 2029, with 94.3% allocated to servers with embedded accelerators [2] - Global AI spending is expected to surpass $2 trillion in 2026, up from an estimated $1.5 trillion in 2025, benefiting both DELL and CSCO [2] Dell Technologies (DELL) Performance - DELL is experiencing strong demand for AI servers, with $12.3 billion in AI server orders in Q3 FY26, totaling $30 billion year-to-date [5][10] - The company reported a record backlog of $18.4 billion in AI server orders, indicating sustained demand [5] - DELL anticipates shipping approximately $9.4 billion worth of AI servers in Q4 FY26, with total shipments expected to reach $25 billion for FY26, reflecting a 150% year-over-year growth [6][10] Cisco Systems (CSCO) Performance - CSCO has integrated AI into its product offerings, with AI infrastructure orders from hyperscalers reaching $1.3 billion in Q1 FY26 [7] - The company expects $3 billion in AI infrastructure revenues from hyperscalers in FY26, supported by a $2 billion order pipeline [7][10] - CSCO's total Annual Recurring Revenues reached $31.4 billion, up 5% year-over-year, with remaining performance obligations at $42.9 billion, up 7% year-over-year [8] Valuation and Earnings Estimates - DELL shares are considered undervalued with a Value Score of A, trading at a forward Price/Sales ratio of 0.64X, while CSCO shares are viewed as overvalued with a Value Score of D, trading at 4.82X [14] - The Zacks Consensus Estimate for DELL's FY26 earnings is $9.95 per share, indicating a 22.24% year-over-year increase, while CSCO's estimate is $4.10 per share, reflecting a 7.61% increase [16] Earnings Performance - DELL has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.23% [18] - CSCO has consistently beaten the Zacks Consensus Estimate in all four quarters, delivering a higher average surprise of 3.22% compared to DELL [18] Conclusion - Both DELL and CSCO are positioned to benefit from the growing AI infrastructure market, but CSCO is seen as having greater upside potential due to its robust AI-driven portfolio and higher earnings momentum [19]

Market Overview - The global Cognitive Analytics Market was valued at USD 7.90 billion in 2025 and is projected to reach USD 81.46 billion by 2033, with a CAGR of 33.99% from 2026 to 2033 [1] - The U.S. Cognitive Analytics Market was valued at USD 2.17 billion in 2025 and is expected to grow to USD 22.03 billion by 2033, with a CAGR of 33.61% from 2026 to 2033 [3] Growth Drivers - The market is expanding due to increasing demand for data-driven decision-making, real-time insights, and the growing acceptance of AI and machine learning across various industries [1][3] - Factors contributing to the U.S. market growth include high AI adoption, advanced digital infrastructure, robust business expenditures, and cloud integration [3] Segmentation Analysis By Enterprise Type - Large Enterprises held a 61% market share in 2025, driven by large data volumes and complex business processes, while small and medium enterprises are expected to grow the fastest from 2026 to 2033 due to lower entry barriers from cloud-based solutions [4] By Application - Customer Management accounted for 31% of the market share in 2025, focusing on enhancing customer experience and retention, while Fraud Detection and Security is anticipated to grow the fastest from 2026 to 2033 due to increasing cyber threats [5] By End-User - The BFSI sector dominated with a 28% share in 2025, relying heavily on advanced analytics for fraud prevention and risk assessment, while Retail is expected to experience the fastest growth from 2026 to 2033 as companies leverage cognitive analytics for demand forecasting and personalized promotions [6][7] By Deployment - Cloud deployment led with a 64% market share in 2025 and is projected to grow at the fastest rate from 2026 to 2033, attributed to its scalability and cost efficiency [8] Regional Insights - North America held the largest revenue share of approximately 38% in 2025, benefiting from early AI adoption and a strong presence of major technology providers [9] - The Asia Pacific region is expected to grow at the fastest CAGR of about 15.22% from 2026 to 2033, driven by rapid digital transformation and increasing AI investments [10] Market Trends - There is a rising enterprise focus on data-driven decision-making using AI-powered insights, which enhances operational efficiency and competitive advantage through real-time analysis of consumer behavior and market trends [11] Key Players - Major companies in the cognitive analytics market include Google LLC, Oracle Corporation, IBM Corporation, Microsoft Corporation, and Amazon Web Services, among others [13]

Core Insights - Cisco Systems (CSCO) shares have returned 7.7% over the past three months, outperforming the broader Zacks Computer & Technology sector and peers like Hewlett Packard Enterprise (HPE) and Arista Networks (ANET) due to a strong focus on AI and security [1][6] Stock Performance - CSCO stock has outperformed the tech sector, driven by solid trends in AI and security [6] Valuation - Cisco's aggressive AI initiatives and strong networking growth justify its premium valuation, with a forward 12-month price/sales ratio of 4.77X, higher than the industry average of 4.63X and HPE's 0.72X, but lower than ANET's 14.57X [4] Revenue and Earnings Guidance - For fiscal year 2026, Cisco expects revenues between $60.2 billion and $61 billion, up from $56.7 billion in fiscal 2025, with non-GAAP earnings projected between $4.08 and $4.14 per share [15] - The Zacks Consensus Estimate for fiscal 2026 revenues is $60.59 billion, indicating a 7% growth from fiscal 2025, while earnings are estimated at $4.10 per share, reflecting a year-over-year growth of 7.6% [16] AI Infrastructure and Networking Growth - In Q1 of fiscal 2026, AI infrastructure orders from hyperscalers reached $1.3 billion, with expectations of $3 billion in AI infrastructure revenues for the full fiscal year [8] - The networking product orders have seen high teens growth, marking five consecutive quarters of double-digit growth, driven by demand in hyperscale infrastructure and enterprise solutions [9] Strategic Partnerships - Cisco's partnership with NVIDIA enhances its AI capabilities, integrating Cisco Nexus switches with NVIDIA's Spectrum-X architecture to provide low-latency networking for AI clusters [12] Future Outlook - Cisco anticipates strong growth in its networking revenues, supported by robust demand for AI infrastructure and next-gen campus networking solutions [10][11] - The company expects to benefit from a multi-year refresh opportunity in campus networking as older switch support phases out [10]