Viavi Solutions Inc. (VIAV): 10 Under-the-Radar Stocks That Are On Fire Right Now

Why It Matters

The upgraded targets and robust growth forecasts signal that Viavi is poised to capture expanding AI and 5G infrastructure spending, making it a compelling play for investors targeting telecom‑tech upside. Its performance also highlights the broader shift toward AI‑enhanced network assurance across the industry.

Key Takeaways

• Shares up 188.6% YTD, reflecting strong market momentum
• Rosenblatt lifted price target to $70, citing AI-driven growth
• Susquehanna raised target to $65, forecasting 25% revenue CAGR
• AI and 5G demand expected to drive revenue through 2028
• NSE segment projected to represent 80% of revenue by FY2028

Pulse Analysis

Viavi Solutions has become a bellwether for the convergence of network testing and artificial intelligence. The Chandler‑based firm supplies hardware, software and services that validate fiber‑optic, copper and wireless links, a critical function as carriers roll out 5G and lay the groundwork for 6G. By embedding AI into its test platforms, Viavi helps operators automate fault detection and performance optimization, a capability that translates into higher margins and recurring revenue streams. This technological edge has propelled its stock upward, outpacing many pure‑play AI names.

The recent analyst upgrades underscore the market’s confidence in Viavi’s growth trajectory. Rosenblatt’s target hike to $70 and Susquehanna’s to $65 reflect a consensus that the company’s Network Service Enablement (NSE) business will expand at a 25% compound annual growth rate, eventually contributing 80% of total revenue by FY2028. Such expectations are anchored in the anticipated surge of AI‑driven network management tools and the escalating capital expenditures of telecom operators upgrading to higher‑frequency bands. The firm’s ability to capture a larger share of this spend positions it as a beneficiary of the broader digital infrastructure rollout.

From an investment perspective, Viavi offers a blend of growth and relative valuation stability. While its price targets have risen sharply, the stock still trades at a discount to peers when adjusted for its AI‑centric product roadmap and recurring services revenue. However, investors should weigh the risk that a slowdown in telecom capex or a shift in AI adoption timelines could temper momentum. Compared with more speculative AI pure‑plays, Viavi’s diversified customer base across telecom, data centers and aerospace provides a defensive cushion, making it an attractive candidate for portfolios seeking exposure to the AI‑enabled networking wave.