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Cisco (CSCO) Unlikely to Pursue Axonius Acquisition, Says TD Cowen Analyst

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 12 Best DOW Stocks to Buy in 2026.

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On January 5, TD Cowen analyst Shaul Eyal said the firm’s channel checks and industry conversions suggest that Cisco Systems, Inc. (NASDAQ:CSCO) acquiring Axonius “is not imminent and is currently not in our cards.”

TD Cowen also noted that names like SentinelOne, Varonis, and Tenable could attract interest from strategic and financial sponsors. Lower interest rates and the push to broaden security capabilities are driving those conversions, the analyst said.

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock jumped more than 28% in 2025, and early signs from fiscal 2026 point to continued momentum.

First-quarter revenue rose 8% year-over-year. The pace may look modest for a company trading near a 30x P/E, but investors are focused on AI. Cisco said its infrastructure orders reached $1.3 billion, “reflecting a significant acceleration in growth.” Big tech spent heavily on AI this year, and the budgets are expected to rise again next year.

Net income increased 5% from a year earlier. At this point, Cisco’s case as an undervalued dividend stock largely rests on the durability of its AI infrastructure sales.

Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells technologies that power the Internet. The company brings together networking, security, collaboration, applications, and cloud products into a single, integrated portfolio.

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 have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 14 Best Dividend Growth Stocks to Buy and Hold in 2026 and 13 Best January Dividend Stocks to Invest In

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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