Does Keysight’s (KEYS) AI Interconnect Testing Push Reveal a Deeper Competitive Shift in Datacenters?

• On January 29, 2026, Keysight Technologies and Point2 Technology announced a collaboration to validate Point2’s e-Tube interconnects aimed at easing AI and machine learning data center bottlenecks using Keysight’s high-speed digital test platforms.
• The partnership highlights how test and measurement expertise can become a critical enabler for hyperscalers seeking lower-power, longer-reach alternatives to traditional copper and optics in xPU clusters.
• With this AI-focused collaboration in view, we’ll examine how enabling multi-terabit, power-efficient interconnect validation shapes Keysight’s broader investment narrative.

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What Is Keysight Technologies' Investment Narrative?

To own Keysight, you need to be comfortable paying up for a testing and measurement leader that is tightly wired into high-end electronics, communications and now AI infrastructure, with growth that has been solid rather than spectacular. The recent Point2 collaboration fits that story more as validation than as a near term game changer: it reinforces Keysight’s role in solving AI data center interconnect problems, but is unlikely to move the needle quickly against existing short term catalysts like execution on its US$5.38 billion revenue base, earnings quality and the US$1.50 billion buyback. At the same time, it slightly tilts the risk mix toward higher reliance on AI-driven spend, on top of existing concerns around a rich valuation, insider selling and rising CEO pay.

However, one governance and valuation issue here is easy for investors to miss. Keysight Technologies' shares are on the way up, but they could be overextended by 20%. Uncover the fair value now.

Exploring Other Perspectives

Five Simply Wall St Community fair value views span roughly US$173 to US$220 per share, underscoring very different expectations. Set against Keysight’s premium multiple and growing AI exposure, that spread highlights why many market participants are watching execution risk and governance signals closely.

Explore 5 other fair value estimates on Keysight Technologies - why the stock might be worth 20% less than the current price!

Build Your Own Keysight Technologies Narrative

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

• A great starting point for your Keysight Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Keysight Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Keysight Technologies' 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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