Can Keysight's Solutions Accelerate Advanced IC Development?

Keysight Technologies, Inc. KEYS is strengthening its position in advanced semiconductor design and testing through its electronic design automation (EDA) solutions. Its Advanced Design System platform enables engineers to design and validate high-frequency circuits across RF, sub-THz and THz ranges.

Keysight’s EDA technology has helped AttoTude Inc. streamline the development of guided-wave interconnect ICs supporting data rates of up to 800G per lane. The technology combines electromagnetic simulation, system-level analysis and integrated design workflows, allowing engineers to evaluate design trade-offs before production. This has cut down design cycles by more than 50%, moving AI infrastructure chips from concept to tape-out in less than six weeks while achieving first-pass silicon success.

The company’s design data management software provides a centralized, version-controlled environment that improves collaboration, traceability and consistency throughout the IC design process. Simulation-to-measurement correlation further helps engineers verify that designs perform as expected in real-world conditions.

Keysight’s EDA portfolio highlights its role in enabling faster and more reliable semiconductor development as AI infrastructure demands higher bandwidth and increasingly sophisticated interconnect technologies.

How Are Competitors Advancing?

Keysight faces competition from Viavi Solutions Inc. VIAV and Vistance Networks, Inc. VISN. Viavi has expanded its testing portfolio with a new solution for validating Ultra Ethernet Transport in AI data center networks without physical GPUs. The company’s PCIe 6.0 Xgig platform received PCI-SIG Gold Suite acceptance for PCIe 6.0 compliance testing. Viavi introduced a channel emulator for 6G and Wi-Fi 7/8 testing, helping engineers to test wireless devices under real-world network conditions. 

Vistance has strengthened its network solutions portfolio to improve performance, bandwidth and reliability for broadband providers. Its Aurora Networks business is advancing distributed access architecture and converged edge solutions to support higher-speed, lower-latency networks. Vistance uses AI-driven network management and automation through RUCKUS solutions to improve network operations and customer experiences. 

KEYS’s Price Performance, Valuation and Estimates

Keysight shares have rallied 95.8% over the past year compared with the industry’’s growth of 92.4%.

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Going by the price/earnings ratio, the company's shares currently trade at 24.46 forward earnings, lower than the industry’s 27.15.

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Earnings estimates for 2026 have increased 9.1% to $11.23 over the past 60 days, while those for 2027 have increased 11.4% to $13.45.

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

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This article originally published on Zacks Investment Research (zacks.com).

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