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SUNSEA Telecommunications vs Cisco Systems: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

SUNSEA Telecommunications Co Ltd (002313.CS)

Cisco Systems Inc (CSCO)

Q3 2026
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Cisco's AI Orders Surge, But Margin and Valuation Risks Loom

  • AI Orders and Revenue Beat Expectations Cisco's AI infrastructure orders hit $9.3 billion, up 4.5 times from a year ago, and revenue rose 18% to $17.3 billion, beating guidance. This shows strong demand for Cisco's AI networking gear.

    This is the core positive driver of Cisco's stock, showing accelerating AI momentum.

  • Demand Broadens Beyond Hyperscalers Cisco won a $230 million U.S. Army contract and new design wins, plus partnerships with AMD, HUMAIN, Supermicro, and Bell Canada. This reduces reliance on a few big cloud customers.

    It shows Cisco's AI demand is diversifying, which supports future growth.

  • Gross Margin Pressure from AI Hardware Gross margin fell 210 basis points to 66.3% because lower-margin AI hardware is a bigger part of sales. Management expects more pressure ahead, which could hurt profits.

    Margin decline is a key risk that weighs on profitability and stock valuation.

  • High Valuation and Competitive Threats The stock trades at 26 times forward earnings, 47–50% above fair value, leaving it vulnerable to AI spending disappointments. Also, Huawei trial, weak firewall tests, and security issues add uncertainty.

    Valuation and competitive/legal risks could lead to stock declines if expectations aren't met.

August 2026
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Cisco's AI Orders Surge, But Margins and Valuation Face Pressure

  • AI Orders and Revenue Beat Expectations Cisco's fiscal 2026 AI infrastructure orders reached $9.3 billion, 4.5 times last year's level. Q4 revenue rose 18% to $17.3 billion, and FY27 guidance of $72.2–73.4 billion beat expectations, showing strong demand.

    This is the core positive driver of Cisco's stock, showing accelerating AI demand and better-than-expected financials.

  • Security and Partnerships Expand AI Reach Security revenue grew 14% and firewall orders rose 30%. New partnerships with Supermicro and Bell Canada broaden Cisco's AI infrastructure reach, opening additional growth channels beyond its traditional networking business.

    These new partnerships and security growth are fresh positives that diversify Cisco's revenue and support the bull case.

  • Gross Margin Pressure from AI Hardware Gross margin fell 210 basis points to 66.3% due to lower-margin AI hardware sales, with further pressure expected. This profitability squeeze is a key risk as Cisco shifts toward AI infrastructure.

    Margin decline is a significant negative that could weigh on earnings and investor sentiment.

  • Stretched Valuation and Competitive Concerns After a 60%+ run, Cisco trades near 26x forward earnings, above a $69.43 fair-value estimate. Weak firewall test results and the LiteLLM supply chain compromise add competitive and security risks, while campus networking remains soft.

    Valuation and competitive issues are new negatives that could trigger a correction or limit upside.

Latest
▲3▼1

Cisco's AI Orders and Security Demand Keep Growth Story Alive

  • AI Infrastructure Orders Accelerate Cisco closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders, about 4.5 times fiscal 2025, and expects $7.5 billion in related revenue in fiscal 2027. This confirms strong demand for Cisco's AI networking gear, supporting future sales and pushing the stock up.

    This is the core new data point showing AI demand is real and growing, directly supporting Cisco's revenue outlook.

  • Security Orders and Revenue Jump Cisco reported double-digit security order growth, 14% Security revenue growth to $2.23 billion, and firewall orders up over 30% year over year. More than 1,500 customers bought newer security products. This shows Cisco's security push is gaining traction, boosting confidence in its software shift.

    New quarterly security results show a key growth area beyond AI, directly impacting revenue and investor sentiment.

  • Sovereign AI Partnership with Bell Canada Bell Canada and Cisco signed an MOU to build sovereign AI infrastructure in Canada, combining Bell's data centers with Cisco's AI PODs and security tech for government and regulated customers. This opens a new market for Cisco's AI and security products, supporting future revenue.

    This is a new partnership that extends Cisco's AI reach into regulated sectors, a fresh growth avenue.

  • Firewall Test Results Raise Competitive Concerns In independent 2026 cloud firewall tests, Cisco's Secure Firewall Threat Defense Virtual scored only 66.10% security effectiveness and was rated Caution, while rivals Fortinet, Palo Alto, and Juniper earned Recommended ratings. This weak showing could hurt Cisco's reputation and sales in the competitive security market.

    This is a new negative development that could pressure Cisco's security business and stock price.

September 2026
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Cisco's AI Orders and Partnerships Drive Gains, But Valuation and Legal Risks Loom

  • New Partnerships Expand AI Reach Cisco announced partnerships with AMD, HUMAIN, Super Micro, and Infleqtion, broadening its AI infrastructure ecosystem and opening new growth channels.

    These partnerships are new developments that support Cisco's AI strategy and revenue potential.

  • Splunk Momentum and AI POD Launch Splunk delivered double-digit order growth, added 280+ new logos, and launched an AI POD for on-premises deployments, boosting Cisco's software and security offerings.

    Splunk's performance and new product are fresh positives that enhance Cisco's software story.

  • Valuation and Legal/Security Risks Cisco's stock trades 47–50% above fair-value estimates, the Huawei trade-secret trial adds legal uncertainty, and security advisories for IOS XR and Nexus 9000 raise costs, potentially capping upside.

    These are key risks that could limit stock performance despite strong AI demand.

▲3

Cisco Expands Splunk AI On-Premises, Quantum Push; Security Burden Grows

  • Splunk AI POD brings AI behind the firewall Cisco launched AI POD for Splunk, letting companies run Splunk AI on their own servers with Nvidia chips and Kubernetes, even in air-gapped setups. This opens a new market for Cisco's hardware and software, supporting future revenue and keeping the AI growth story alive.

    This is the period's biggest new product push and directly supports Cisco's AI revenue narrative.

  • Splunk orders grow double digits, 280+ new logos Splunk posted double-digit order growth in its latest quarter, added over 280 new customers, and Cisco beat its full-year target of 1,000 Splunk logos. More than 1,500 customers bought newer security products, showing the Splunk deal is paying off and boosting confidence in Cisco's software shift.

    It gives concrete evidence that Cisco's Splunk acquisition is driving real customer demand.

  • Quantum networking partnership with Infleqtion Cisco teamed with Infleqtion on quantum networking and showed a Universal Quantum Switch prototype. This is early-stage but positions Cisco in a future technology, giving investors a long-term growth option beyond today's AI hardware.

    It is a new partnership that adds a future growth angle for Cisco.

  • Security flaws and stretched valuation weigh on stock Cisco's own critical security advisories for IOS XR and Nexus 9000 add engineering and service costs, while the stock trades about 47% above a fair-value estimate. These factors can cap upside even as AI demand stays strong, so investors should watch execution and valuation risk.

    It provides the main counterweight to the positive AI and Splunk news this period.

▲3▼1

Cisco's AI Orders and New Partnerships Drive Growth, But Valuation and Legal Risks Loom

  • AI Infrastructure Orders Surge to $9.3B, Revenue Guidance Raised Cisco booked $9.3 billion in AI infrastructure orders for fiscal 2026, with $4 billion in Q4 alone, and guided fiscal 2027 revenue to $72.2-$73.4 billion. This confirms strong AI demand and supports future revenue growth, pushing the stock up.

    This is the core driver of Cisco's growth story and directly impacts its revenue outlook.

  • New Partnerships Expand AI and Quantum Reach Cisco partnered with AMD and HUMAIN to deploy AI infrastructure in Saudi Arabia, with Super Micro for AI server systems, and with Infleqtion for quantum networking R&D. These deals open new markets and revenue streams, boosting investor optimism.

    These partnerships show Cisco's expanding ecosystem and addressable market, which can drive future growth.

  • Campus Switch Market Growth and Share Gains Campus switch prices rose 19% in Q2 2026 due to component shortages, and Cisco gained market share. This pricing power and share gain support revenue and margins, positively impacting the stock.

    This highlights Cisco's ability to navigate supply challenges and maintain pricing, which is positive for profitability.

  • Valuation Stretched and Huawei Trial Adds Uncertainty Cisco trades nearly 50% above GF Value estimate, raising valuation concerns. The Huawei trade-secret trial could create legal overhang. These factors may limit upside or trigger pullbacks.

    Valuation and legal risks are key counterweights that could pressure the stock despite strong fundamentals.

▲4

Cisco's AI Orders Hit $9.3B; Security and Supermicro Push Growth

  • AI infrastructure orders reach $9.3 billion Cisco booked $9.3 billion in AI infrastructure orders for fiscal 2026, with hyperscaler AI orders hitting $4 billion in the quarter. This confirms AI demand is real and flowing into Cisco's networking gear, supporting revenue growth and keeping the stock in favor with investors.

    This is the core new number showing AI demand is accelerating, directly supporting Cisco's revenue outlook and stock price.

  • Supermicro partnership expands AI server reach Cisco is adding Supermicro's liquid and air-cooled AI server systems to its Secure AI Factory with Nvidia, breaking its traditional hardware rule. This lets Cisco capture more private AI infrastructure spending and gives customers a complete validated stack, potentially boosting future revenue.

    This is a new strategic move that opens a new revenue stream and deepens Cisco's AI infrastructure offering.

  • Security business grows 14% with firewall orders up 30% Cisco's security revenue rose 14% to $2.23 billion, and firewall orders grew over 30%, adding 6,400+ new customers. This shows Cisco's security push is gaining traction against rivals like Palo Alto and Fortinet, providing a higher-margin revenue stream that can offset hardware margin pressure.

    This new data point shows Cisco's security segment is a growing, profitable counterweight to its lower-margin AI hardware business.

  • AI rally broadening beyond Magnificent Seven JPMorgan strategist notes the AI rally is broadening, with infrastructure providers like Cisco seeing record backlogs and strong earnings. This suggests sustained investor interest in AI infrastructure stocks, which can support Cisco's valuation even as it trades at a premium.

    This macro trend supports continued demand for Cisco's AI infrastructure products and investor appetite for the stock.

▼3▲1

Cisco's AI Orders Boom, But Margin Squeeze and Rich Valuation Hit Stock

  • Record Q4 results and raised guidance on AI networking demand Cisco beat estimates with record revenue of $17.25 billion, up 18%, and EPS of $1.22. Networking revenue jumped 28% to $9.8 billion, and total product orders rose 35%. Management guided fiscal 2027 revenue up to $73.4 billion, well above expectations. This shows AI demand is real and accelerating, supporting the stock's long-term value.

    This is the core positive driver: strong results and guidance confirm AI demand is fueling growth.

  • Gross margin falls 210 bps as AI hardware mix pressures profitability Adjusted gross margin fell to 66.3%, and Q1 guidance of 65–66% signals continued pressure. AI hardware sales carry lower margins than software, so as AI revenue grows, overall profitability shrinks. This margin squeeze is the main reason the stock dropped 8.8% despite record results.

    This explains the sharp negative price reaction and is a key counterweight to the positive AI story.

  • Valuation looks stretched after 60%+ run; GF Value implies 65% premium Cisco shares have climbed over 60% in 2026 and trade at roughly 26 times forward earnings. One valuation estimate puts fair value at $69.43, far below the $114.69 price. When a stock gets this expensive, any disappointment—like margin pressure—can trigger a sharp pullback, as seen this week.

    High valuation amplifies the impact of any negative news, making the stock vulnerable to pullbacks.

  • AI supply chain exposure and security business concerns add risk Cisco was named among 2,500+ organizations potentially impacted by the LiteLLM supply chain compromise, which could expose credentials and source code. Analysts also flagged weak performance in Cisco's security business and traditional campus networking. These issues add uncertainty and could weigh on the stock if they escalate.

    This highlights additional risks that could undermine investor confidence and pressure the stock.

▼3▲1

Cisco's AI Orders Soar, But Margin Squeeze and Rich Valuation Weigh on Stock

  • AI order target raised to $9B; record Q4 results and strong FY27 guidance Cisco raised its fiscal 2026 AI infrastructure order target to $9 billion and reported record Q4 revenue of $17.3 billion, up 18%. It guided fiscal 2027 revenue to $72.2–$73.4 billion, well above the ~$68.7 billion analysts expected. This shows AI demand is real and accelerating, supporting revenue growth and keeping the stock in favor.

    This is the core positive force: AI orders and guidance beat expectations, driving the stock higher.

  • Gross margin falls 210 bps as AI hardware mix pressures profitability Adjusted gross margin fell 210 basis points to 66.3%, and Q1 guidance of 65–66% signals continued pressure. AI hardware sales carry lower margins than software, so as AI revenue grows, overall profitability shrinks. This margin squeeze is the main reason the stock dropped 8.8% despite record results.

    This is the key counterweight: margin pressure is the primary negative driver that overshadowed strong results.

  • Valuation looks stretched after 60%+ run; GF Value implies 65% premium Cisco shares have climbed over 60% in 2026 and trade at roughly 26 times forward earnings. One valuation estimate puts fair value at $69.43, far below the $114.69 price. When a stock gets this expensive, any disappointment—like margin pressure—can trigger a sharp pullback, as seen this week.

    High valuation amplifies the negative reaction to margin news and is a real risk for future returns.

  • AI supply chain exposure and security business concerns add risk Cisco was named among 2,500+ organizations potentially impacted by the LiteLLM supply chain compromise, which could expose credentials and source code. Analysts also flagged weak performance in Cisco's security business and traditional campus networking. These issues add uncertainty and could weigh on the stock if they escalate.

    These are new risk factors that could hurt Cisco's reputation and future revenue, adding to the negative case.

July 2026
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Cisco's AI Demand Broadens, Guidance Raised, But Margin Risks Linger

  • AI Demand Broadens Beyond Hyperscalers Cisco's AI demand expanded beyond big cloud providers, with a $230 million U.S. Army IT modernization contract, five new hyperscaler design wins, and over $1 billion in Acacia optics orders. This diversification reduces reliance on a few large customers and signals wider adoption.

    This is a new development in July 2026 that shows Cisco's AI business is growing beyond its traditional customer base, a key positive driver.

  • Guidance Raised on Strong AI Orders Cisco raised its fiscal 2026 AI order target to roughly $9 billion and lifted revenue and earnings guidance. The projected U.S. data center market growth to $494 billion by 2031 supports future networking demand, boosting investor confidence.

    This is a new positive event in July 2026 where Cisco increased its financial outlook, directly impacting the stock price.

  • Wall Street Raises Price Targets Wall Street responded positively to Cisco's AI progress, raising price targets to $112–$150. Cisco also expanded security and quantum-safe alliances, potentially including a SentinelOne acquisition, which could open new growth avenues.

    This is a new development in July 2026 showing analyst optimism and strategic moves that could drive the stock higher.

  • Margin Pressure and Valuation Concerns Goldman Sachs and Piper Sandler flagged gross margin pressure from AI hardware sales, while Zacks warned tech may be overvalued and due for a correction. Cisco's high P/E leaves it vulnerable to any AI spending disappointment.

    This is a new risk factor in July 2026 that could weigh on Cisco's stock price, providing a balanced view.

▲3▼1

Cisco's AI Order Boom Keeps Growing, But Valuation and Margins Are Watchpoints

  • AI order momentum broadens with new hyperscaler wins and $1B+ Acacia optics orders Cisco raised its fiscal 2026 AI infrastructure order target to about $9 billion, secured five new hyperscaler design wins, and its Acacia optics unit booked over $1 billion in orders. This shows AI demand is real and flowing into Cisco's networking gear, supporting revenue growth and keeping the stock in favor.

    This is the core force behind Cisco's recent gains and the main reason analysts keep raising targets.

  • Wall Street raises price targets as fair value edges up to $130 Several major banks, including BofA, Morgan Stanley, and Citi, lifted their Cisco price targets into a $112–$150 range after strong AI-related orders. The higher targets reflect confidence that AI networking demand will keep growing, which can pull the stock price up as investors adjust expectations.

    Analyst target hikes directly influence investor sentiment and can move the stock price.

  • Cisco expands security and quantum-safe alliances, including potential SentinelOne acquisition Cisco is reportedly a leading candidate to buy SentinelOne, a cybersecurity firm with FedRAMP High authorization, and announced new AI and quantum-safe security partnerships with Tech Mahindra, Nvidia, and others. These moves strengthen Cisco's security offerings and could open new government and enterprise revenue streams.

    Security is a key growth area for Cisco, and these deals could add recurring revenue and differentiate its products.

  • Valuation concerns and margin pressure flagged by bearish analysts Goldman Sachs and Piper Sandler warned about gross margin pressure as AI hardware sales grow, and Zacks noted tech may be overvalued with potential for a near-term correction. Cisco's stock trades at a high P/E, so any disappointment in AI spending or margins could trigger a pullback.

    This is the main counterweight to the bullish AI narrative and could cap upside or cause volatility.

▲4

Cisco's AI Demand Broadens Beyond Hyperscalers as Army Deal and Data Center Boom Add Support

  • AI infrastructure spending now bigger than dot-com boom Zacks says AI infrastructure investment has surpassed the late-1990s internet boom as a share of the U.S. economy, with tech and telecom investment at 5.5%-6.0% of GDP. Cisco is highlighted as a top strong-buy pick, reinforcing that the demand backdrop for its networking gear remains unusually strong.

    Shows the macro force behind Cisco's AI orders and why demand may stay elevated.

  • Cisco raises fiscal 2026 guidance and restructures toward AI Cisco lifted its fiscal 2026 revenue and earnings outlook and is reorganizing around silicon, optics, security and AI, while deepening an AI partnership with Rafay Systems. Higher guidance signals the AI order boom is flowing into financial results, though the stock already trades slightly above one fair-value estimate.

    Directly answers what is driving the stock now: upgraded financial outlook tied to AI.

  • $230 million U.S. Army IT modernization contract Cisco, through partner World Wide Technology, won a 12-month $230 million Army agreement consolidating voice, video, security and 30-plus Cisco enterprise deals into one support contract. It broadens Cisco's revenue beyond hyperscalers into government defense, a steadier source of demand.

    New contract shows Cisco's AI-era networking and security demand spreading to government customers.

  • U.S. data center market forecast to reach $494 billion by 2031 The U.S. data center market is projected to grow from about $299 billion in 2025 to $494 billion by 2031, driven by AI workloads that could triple hyperscale capacity. Cisco is named a key infrastructure provider, meaning this build-out should keep orders for its switching and networking gear coming.

    Long-term data center expansion is the underlying demand engine for Cisco's AI networking business.

Q2 2026
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Cisco's AI Orders Soar, But Nvidia Takes Switching Lead

  • AI Infrastructure Orders Forecast Raised Cisco raised its AI infrastructure orders forecast from $5 billion to $9 billion, with product orders up 35% and data center switching orders up 40% year over year. Acacia optical orders also topped $1 billion.

    This shows surging demand for Cisco's AI networking gear, a key growth driver.

  • Nvidia Overtakes Cisco in Data Center Switching Nvidia became the top data center Ethernet switching vendor, with revenue surging 192.7% to $2.1 billion. This signals intensifying competition that could pressure Cisco's market share.

    This competitive shift is a major negative development for Cisco's core switching business.

  • Gross Margin and Recurring Revenue Growth Slow Gross margin fell to 66% from 67.5% as lower-margin AI hardware grew, and recurring revenue growth slowed to 2% from 3%. These trends weigh on profitability and stability.

    Margin pressure and slowing recurring revenue are key financial headwinds for Cisco.

  • Legal Uncertainty Removed The Supreme Court ended the Falun Gong lawsuit against Cisco, removing a long-standing legal overhang. This eliminates a potential risk and allows management to focus on operations.

    Removal of legal risk is a positive catalyst that improves Cisco's outlook.

June 2026
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Cisco's AI Orders Soar, But Nvidia Takes Switching Lead

  • AI Infrastructure Orders Forecast Raised Cisco raised its AI infrastructure orders forecast from $5 billion to $9 billion, with product orders up 35% and data center switching orders up 40% year over year. Acacia optical orders also topped $1 billion.

    This shows surging demand for Cisco's AI networking gear, a key growth driver.

  • Nvidia Overtakes Cisco in Data Center Switching Nvidia became the top data center Ethernet switching vendor, with revenue surging 192.7% to $2.1 billion. This signals intensifying competition that could pressure Cisco's market share.

    This competitive shift is a major negative development for Cisco's core switching business.

  • Gross Margin and Recurring Revenue Growth Slow Gross margin fell to 66% from 67.5% as lower-margin AI hardware grew, and recurring revenue growth slowed to 2% from 3%. These trends weigh on profitability and stability.

    Margin pressure and slowing recurring revenue are key financial headwinds for Cisco.

  • Legal Uncertainty Removed The Supreme Court ended the Falun Gong lawsuit against Cisco, removing a long-standing legal overhang. This eliminates a potential risk and allows management to focus on operations.

    Removal of legal risk is a positive catalyst that improves Cisco's outlook.

▲2▼2

Cisco's AI Orders Boom, But Margins and Recurring Revenue Slow

  • AI infrastructure orders raised to $9 billion Cisco now expects about $9 billion in AI infrastructure orders this fiscal year, up from $5 billion, after record quarterly revenue of $15.8 billion. Big hyperscaler customers keep buying its networking gear, which supports revenue growth and keeps the stock in favor.

    This is the core new driver of Cisco's revenue growth and the main reason the stock has rallied.

  • Gross margins fall as AI hardware mix grows Cisco's gross margin dropped to 66% from 67.5% two years ago, and product gross margin fell to 64.3%. Selling more lower-margin AI hardware trades profitability for volume, which can cap how much the stock is worth even as sales rise.

    Margin compression is the main counterweight to the AI order boom and directly affects earnings quality.

  • Recurring revenue growth slows to 2% Cisco's annual recurring revenue growth decelerated to 2% from 3%, and product ARR slowed to 4% from 6%. Subscriptions are 49% of revenue, so this slowdown challenges the idea that software can smooth out hardware cycles and support a higher valuation.

    This is a new negative signal about Cisco's subscription pivot, a key part of its long-term investment case.

  • Supreme Court ends Falun Gong lawsuit against Cisco The Supreme Court ruled 6-3 that Cisco cannot be sued for aiding and abetting under the Alien Tort Statute, ending a long-running case over its China surveillance work. Removing this legal cloud reduces uncertainty and potential financial risk for the company.

    This is a new legal/regulatory event that removes a risk overhang on the stock.

▲3▼1

Cisco's AI Networking Orders Surge, But Nvidia Gains in Data Center Switching

  • Record AI-driven orders and revenue Cisco reported record quarterly sales of $15.8 billion, with total product orders up 35% and data center switching orders up 40% year over year. Management raised its full-year AI infrastructure orders forecast from $5 billion to $9 billion, signaling strong demand for Cisco's AI networking gear.

    This is the core positive driver: surging orders and raised guidance directly boost revenue expectations and investor confidence.

  • Acacia optical orders top $1 billion as AI optics demand quadruples Cisco's Acacia optical unit booked over $1 billion in orders in fiscal Q3, with AI-related optics demand nearly quadrupling to about $950 million. Bank of America raised its price target to $150, citing Cisco's role in the 400G-to-800G upgrade cycle that could expand the 800G market tenfold in 2026.

    This shows a concrete, fast-growing revenue stream tied to AI bandwidth demand, directly supporting the bullish case.

  • Analyst price targets and fair value estimates rise Multiple analysts, including BofA, Morgan Stanley, and Goldman Sachs, raised their price targets on Cisco, pushing the fair value estimate up to $127.05. The upgrades reflect stronger AI networking execution, campus refresh activity, and optical demand, reinforcing positive sentiment.

    Analyst upgrades and higher fair value estimates directly influence investor perception and can drive the stock price higher.

  • Nvidia overtakes in data center Ethernet switching Nvidia became the top vendor in data center Ethernet switching for the first time, with revenue surging 192.7% to $2.1 billion. While Cisco still leads the overall Ethernet switching market, Nvidia's rapid share gains in AI-focused switching pose a competitive threat to Cisco's data center business.

    This is the main counterweight: intensifying competition from Nvidia could pressure Cisco's market share and pricing power.

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