Can Viavi (VIAV) turn new AI-focused networking tools into a lasting competitive advantage?

• Viavi Solutions recently announced its Observer Threat Forensics platform and next-generation TestCenter D2 1.6T appliance, and showcased these AI-powered security and high-speed network testing solutions at RSA Conference in San Francisco and OFC 2026 in Los Angeles.
• Together, these announcements highlight Viavi’s efforts to unify network security operations, validate next-generation 1.6T Ethernet for AI workloads, and directly address CIO and CISO concerns around fragmented visibility.
• Next, consider how Viavi’s new 1.6T AI-focused TestCenter D2 appliance impacts your existing investment story and growth assumptions.

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Viavi Solutions Investment Story Summary

To own Viavi, you typically need to believe that the company’s data centers and optical test tools can offset the volatility of its traditional telecom and OSP sectors, while also allowing the company to make acquisitions and cost cuts without overstretching its balance sheet. While the introduction of the new Observer Threat Forensics and 1.6T TestCenter D2 strengthens AI and security credentials, the biggest near-term variables remain unclear: how demand for resilient data centers and hyperscalers will hold up versus the cyclicality of wireless and service provider spending.

Among the recent announcements, the TestCenter D2 1.6T appliance is the most relevant here. Because it sits right within the data center ecosystem that supports Viavi’s current bullish narrative. This targets emerging 1.6T Ethernet AI clusters and multi-vendor environments, directly aligning with expectations that high-speed optics and AI workloads can support continued demand for high-end test equipment and help offset wireless weaknesses. Whether it goes as analysts expect depends on how quickly customers deploy new 1.6T infrastructure.

But even with AI data centers on the rise, investors should be aware that Viavi’s increased exposure to hyperscalers and intensive data center spending could:

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The Viavi Solutions story projects $1.3 billion in revenue and $227.3 million in revenue by 2028. This would require annual revenue growth of 5.8% and an increase in revenue of approximately $192.5 million from the current $34.8 million.

We reveal how Viavi Solutions’ projections resulted in a fair value of $27.21, which is 24% lower than the current price.

explore other perspectives

Some of the most optimistic analysts are already assuming sales of around USD 1.9 billion and profits of around USD 410 million by 2029, and their bullish view that Viavi can rely heavily on these areas could change significantly from today’s positive scenario if AI data center ramp-up and fiber deployment are slower than expected.

Check out 3 other fair value estimates for Viavi Solutions – Why the stock could be worth 24% below its current price!

reach one’s own conclusion

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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