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Can Keysight's Deal for High-Speed Testing Drive Its Future Growth?

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Key Takeaways

  • Keysight will test Point2's e-Tube tech with M8050A BERT and DCA-X oscilloscopes.
  • The deal supports 1.6T data speeds via 120 GBaud PAM4 signal testing.
  • Keysight also aids early 3.2T interface research and AI-hybrid computing with NVIDIA.

Keysight Technologies, Inc. (KEYS - Free Report) has inked a deal with Point2 Technology to test next-generation, multi-terabit interconnects for AI and ML data centers. The partnership aims to solve the increasing connectivity challenges in hyperscale AI data centers as workloads require much higher bandwidth.

Keysight will use its high-speed digital test solutions, such as M8050A High-Performance Bit Error Ratio Tester (BERT) and DCA-X Sampling Oscilloscopes, to test Point2’s e-Tube technology and ensure it meets the strict performance and reliability needs of large-scale AI data centers. The company is also supporting early research on 3.2T interfaces using its 448 Gbps signal generation and advanced testing tools.

This collaboration allows Keysight to use its high-speed test tools to generate and analyze the complex 120 GBaud PAM4 signals needed for ultra-fast 1.6-terabit data speeds. The deal also strengthens advanced testing and interconnect technologies to address scaling challenges and support faster, more reliable AI data centers.

Keysight is also working with NVIDIA Corporation (NVDA - Free Report) to advance hybrid quantum and AI computing by integrating high-performance control systems with AI-driven infrastructure. These strategic ventures highlight Keysight’s expanding role in AI tools, wireless AI, and advanced network testing.

How Are Competitors Performing in the AI Space?

Keysight faces competition from Viavi Solutions Inc. (VIAV - Free Report) and Teradyne, Inc. (TER - Free Report) . Viavi is working with Calnex Solutions to create a test system for Open RAN products. Viavi has upgraded its testing tools with the ONE LabPro platform to support AI-driven optical and data center networks.

Teradyne has partnered with MultiLane to create advanced test solutions for high-speed AI data center connections. Teradyne announced the launch of its Titan HP system-level test platform, built specifically for AI and cloud infrastructure markets.

Keysight's Price Performance, Valuation & Estimates

Shares of Keysight have gained 29.7% over the past year compared with the industry’s growth of 35.1%.

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Image Source: Zacks Investment Research

From a valuation standpoint, the company’s shares currently trade at 26.53 forward 12-month earnings, lower than the industry tally of 30.93.

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Image Source: Zacks Investment Research

Earnings estimates for Keysight for 2026 have increased 1.1% to $8.03, while earnings estimates for 2027 have increased 2.1% to $9.25 over the past 60 days.

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Image Source: Zacks Investment Research

Keysight currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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