On Tuesday, SUPER MICRO COMPUTER INC (SMCI.US) saw its stock climb steadily from the market open, with shares rising more than 7% at the time of writing.

The upward momentum comes after Cisco announced a strategic partnership with Supermicro to integrate high-density liquid-cooled, air-cooled, and rack-scale computing systems into the Secure AI Factory solution, which was originally co-developed by Cisco and Nvidia.

This collaboration signals Cisco's continued expansion beyond its traditional networking equipment roots and deeper into AI computing infrastructure, positioning the company to better address the surging demand for AI deployments.

Under the terms of the agreement, Cisco will incorporate Supermicro's rack-scale, high-density GPU servers into its AI infrastructure portfolio. These systems will be bundled with Cisco's networking, security, and observability products, offering customers pre-validated solutions designed to simplify the deployment and management of large-scale GPU clusters while also supporting non-AI workloads.

The new offering will support Nvidia's next-generation platforms, including the NVIDIA Vera Rubin NVL72 and NVIDIA HGX Rubin NVL8, with customer shipments expected to begin in October 2026.