Feltl notes that neither of the systems Cisco announced today previously used, or were scheduled to use, EZchip's NPUs. The firm believes Cisco's nPower X1 NPU replaces prior internal Cisco design and thinks EZchip's growth story is unchanged. Feltl believes both of EZchip's NP-4/NP-5 designs within Cisco remain intact and reiterates a Strong Buy rating on the stock. Shares of EZchip rallied 14%, or $3.25, to $25.75 after Cisco announced its network convergence system.
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