Is Viavi’s Expanding Role in High‑Speed Optics Testing Altering The Investment Case For Viavi Solutions (VIAV)?

• In recent commentary, Viavi Solutions has been highlighted as a key optics industry player, supplying critical test equipment that underpins reliable high-speed optical connectivity across the supply chain.
• The emphasis on Viavi’s essential role in validating 400G, 800G and 1.6T optics before deployment underscores its potential importance to long-term infrastructure upgrades and broader industry resilience.
• We’ll now examine how Viavi’s reinforced role in high-speed optics testing could influence its existing investment narrative and long-term outlook.

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Viavi Solutions Investment Narrative Recap

To own Viavi Solutions, you need to believe that its test and measurement gear remains a critical gatekeeper for each new generation of high speed optics, from 400G to 1.6T. The recent commentary reinforces this role and modestly strengthens the case for data center driven growth, but it does not materially change the near term risk that spending by service providers and wireless infrastructure customers remains uneven and prone to delays.

Among recent announcements, the October 2025 acquisition of Spirent’s high speed Ethernet and network security business, funded with a US$600 million term loan, looks most relevant, since it directly expands Viavi’s toolkit in high bandwidth testing that underpins the same 400G to 1.6T upgrade cycle highlighted in the news. How effectively Viavi integrates these assets could influence whether the current optics testing momentum translates into more durable earnings power.

Yet, behind the appeal of multi year data center upgrades, investors should be aware that concentrated manufacturing exposure in regions such as China, Thailand and Vietnam could...

Read the full narrative on Viavi Solutions (it's free!)

Viavi Solutions’ narrative projects $1.3 billion revenue and $227.3 million earnings by 2028.

Uncover how Viavi Solutions' forecasts yield a $18.43 fair value, in line with its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span from about US$10.00 to over US$19,000 per share, showing how far apart investor views can be. Against this wide spread, the current focus on Viavi’s role in validating 400G to 1.6T optics highlights how much perceptions of long term data center demand can shape expectations for the business.

Explore 3 other fair value estimates on Viavi Solutions - why the stock might be worth 45% less than the current price!

Build Your Own Viavi Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Viavi Solutions research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Viavi Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Viavi Solutions' overall financial health at a glance.

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

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