Cavium Inc (NASDAQ:CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking announced the demonstration of the OpenFlow and OpenFlow-Hybrid XPliant®-based platforms for Software-Defined Networking (SDN) at Open Networking Summit (ONS) 2015.  Cavium’s XPliant Ethernet switches deliver full line rate support in OpenFlow through XPliant’s SDK APIs and integration of Open vSwitch (OVS).

OpenFlow and OVS are designed to enable massive network automation in a multi-vendor standards-based environment. OpenFlow is the industry leading standard protocol to separate the control and the data plane of SDN architecture.  While this protocol provides an ideal scenario for networking operators, the XPliant Ethernet switches are able to demonstrate these capabilities at 3.2 terabits per second in a completely flexible manner.

Existing silicon switch solutions map OpenFlow constructs to fixed pipelines and tables intended for historical switching protocols. These solutions do not provide the flexibility that network operators require in order to effectively control and automate their networks. In addition, these architectures leverage shallow TCAM resources that do not provide the desired level of scalability.

Cavium’s XPliant Ethernet switch silicon combines the highest level of flexibility and performance in the networking industry. The revolutionary XPA architecture incorporates programmable tables as well as flexible lookups and editing of packets with high throughput. These architectural features enable native support of extremely flexible OpenFlow defined switching implementations, for high performance SDN applications at mega scale.

“Historically, large scale data center customers were only interested in the speeds and feeds of networking silicon. Now customers are looking for standards based vendor interoperable features that enable them to effectively control their networks, scale and grow over time,” said Eric Hayes, VP/GM,Switch Platform Group at Cavium. “The XPA architecture is the ideal solution available today with all of these capabilities simultaneously in a cost effective manner.”

The advantages of Cavium’s XPliant packet architecture are not limited to extensive OpenFlow support. XPA Software APIs expose the OVS control abstractions, enabling users to benefit from OVS rich management and networking features, such as L2 pipeline (VLANs, LAGs, FDB, STP etc.), bonding modes (LACP), and advanced tunneling protocols (Geneve, VxLAN, NVGRE) as well as future yet-to-be-defined standards. Now, through XPA Software and APIs, these open and industry proven features can be seamlessly invoked representing a truly hybrid switch optimized for virtualized environments, in a single hardware.

Combining the XPliant flexible programmable switch silicon with the emerging leading software open ecosystem opens the door to modern networking deployments of SDN applications to achieve high performance and scale.

The XPliant software is available to Cavium customers now, and is shipped as source code. It supports OpenFlow versions 1.3 and beyond. The OVS version supported is 2.3.1. (Original Source)

Shares of Cavium closed yesterday at $73.89 . CAVM has a 1-year high of $75.93 and a 1-year low of $38.73. The stock’s 50-day moving average is $68.76 and its 200-day moving average is $65.73.

On the ratings front, Cavium has been the subject of a number of recent research reports. In a report issued on June 9, Stifel Nicolaus analyst Kevin Cassidy maintained a Buy rating on CAVM, with a price target of $81, which represents a potential upside of 9.6% from where the stock is currently trading. Separately, on the same day, Oppenheimer’s Rick Schafer reiterated a Buy rating on the stock and has a price target of $72.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kevin Cassidy and Rick Schafer have a total average return of 37.7% and 28.2% respectively. Cassidy has a success rate of 78.4% and is ranked #5 out of 3629 analysts, while Schafer has a success rate of 80.2% and is ranked #9.

In total, one research analyst has assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $75.20 which is 1.8% above where the stock closed yesterday.

Cavium Inc designs, develops and markets semiconductor processors that enable intelligent processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications.