Keysight Technologies Sees AI Data-Center Boom, Targets 6G and Defense Growth

Keysight Technologies Sees AI Data-Center Boom, Targets 6G and Defense Growth Written by MarketBeat September 19, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points AI data-center demand is driving strong growth in Keysight’s wireline business, particularly around 1.6T and emerging 3.2T networking, silicon photonics, co-packaged optics and system-level testing. Demand currently exceeds supply, with Keysight expanding manufacturing capacity, supplier agreements and component sourcing; revenue beyond its typical order-to-revenue window was approaching $100 million. Keysight expects additional growth from 6G, aerospace and defense, semiconductors and software-defined vehicles . The company anticipates 6G acceleration in the first half of 2028 and plans to maintain investment while targeting incremental margins of at least 40% when growth exceeds 5%. MarketBeat previews the top five stocks to own by October 1st . 3 Lesser-Known Quantum Plays the Market May Be Overlooking Right Now Keysight Technologies NYSE: KEYS executives said the company is seeing strong demand tied to artificial intelligence data-center buildouts, while preparing for future opportunities in 6G wireless, aerospace and defense, semiconductor testing and software-defined vehicles. Speaking at a Truist investor conference, Chief Financial Officer Neil Dougherty described Keysight as a provider of hardware, software and solutions for industries employing electrical engineers. More than half of company revenue comes from customer research-and-development labs, he said, with Keysight supporting measurement and validation from physical-layer testing through protocol and application-layer software. Get Keysight Technologies alerts: Sign Up Keysight: The AI and Defense Stock Seeing Big Price Target Boosts The company also serves electronics manufacturing customers and, to a lesser extent, post-deployment operational applications. Its major markets include wireline infrastructure for AI data centers, wireless technology transitions, aerospace and defense, automotive, semiconductors and broader electronics. AI Data-Center Demand Drives Wireline Momentum Kailash Narayanan, senior vice president and president of Keysight’s Communication Solutions Group, said the company’s commercial communications operations span wireless and wireline markets and serve chipmakers, device manufacturers, network-equipment vendors, contract manufacturers, mobile operators, hyperscalers and satellite-network operators. MarketBeat Week in Review – 03/16 - 03/20 He said AI-related demand has become a major near-term priority, particularly as the industry moves toward higher network speeds. Keysight is seeing activity around the transition to 3.2-terabit technology, as well as research in silicon photonics and co-packaged optics. According to Narayanan, speed transitions and system-level emulation are currently the biggest contributors to the company’s AI-related business. Keysight is seeing traction in 1.6T technology, while 3.2T research is already underway. Silicon photonics remains primarily an R&D opportunity that the company expects to scale over the coming years. “Our customers’ innovation cadence is increasing,” Narayanan said, citing a rising number of product configurations and growing design complexity as data rates advance from 100 gigabits per second to 200, 400 and 800 gigabits per second. He highlighted the Keysight AI Data Center Builder, launched about 18 months ago, as an example of the company’s product development. The offering is designed to help customers benchmark multi-vendor AI infrastructure, including network topologies, hardware energy consumption and performance across racks and clusters. Narayanan said hyperscalers represent a relatively small percentage of Keysight’s direct revenue but drive multiple times that level of demand through their broader supplier ecosystems. He added that...