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

Keysight Technologies is capitalizing on the booming AI data-center industry and anticipating growth in 6G wireless, aerospace and defense, semiconductors, and software-defined vehicles. During a Truist investor conference, CFO Neil Dougherty highlighted that over half of the company's revenue stems from customer research-and-development labs, supporting measurement and validation from physical-layer testing through protocol and application-layer software.

The demand for AI-related products exceeds supply, leading to Keysight expanding manufacturing capacity and securing supplier agreements and component sourcing. The company anticipates AI-related demand to continue growing, with a focus on transitioning to higher network speeds, silicon photonics research, and co-packaged optics.

Keysight expects to see traction in 1.6T technology, while 3.2T research is already underway. The company is addressing supply constraints through increased production and supply-chain capacity, and anticipates revenue beyond its typical order-to-revenue window to approach $100 million.