Is VIAV a good stock to buy? We came across a bullish thesis on Viavi Solutions Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on VIAV. Viavi Solutions Inc.’s share was trading at $47.41 as of June 29th. VIAV’s trailing and forward P/E were 350.50 and 38.17 respectively according to Yahoo Finance.
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Viavi Solutions Inc. provides network test, monitoring, and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace, and critical infrastructures in the Americas and internationally. VIAV in 2026 is increasingly positioned as an AI infrastructure test and measurement leader rather than its legacy telecom identity, with Rosenblatt estimating a revenue mix of roughly 45% from AI data center testing, under 40% from telecom service providers, and about 15% from defense and aerospace.
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The company supplies critical test, measurement, and protocol analysis systems used by hyperscalers and network equipment manufacturers to validate 800G and 1.6T optical and Ethernet AI fabrics. In Q2 FY26 VIAVI reported revenue of $369.3M, up 36.4% year over year, with adjusted EPS of $0.22 beating consensus $0.19, and EBITDA margins of 22%. Guidance for Q3 implies $393M revenue and $0.23 EPS, reinforcing continued momentum. The investment case is strengthened by sell-side revisions, including multiple price target increases up to $53, as analysts re-rate earnings power ahead of near-term catalysts.
The recently integrated Spirent acquisition adds roughly $180M–$200M in ARR to the network enablement segment and is expected to be EPS accretive within 12 months. VIAVI is also investing early in PCIe 7.0 protocol testing, positioning itself for next generation AI compute rack buildouts. Its roughly 15% defense and aerospace exposure provides a countercyclical revenue base supporting downside resilience.
Together these drivers support a bullish rerating case toward the $60 level implied by option positioning and a potential path toward and beyond analyst targets near $53, if AI infrastructure demand and Spirent synergies continue to inflect. Overall, VIAVI remains a high-conviction AI infrastructure beneficiary with multiple earnings-driven catalysts ahead unfolding rapidly.
Previously, we covered a bullish thesis on Cisco Systems, Inc. (CSCO) by Kroker Equity Research in May 2025, highlighting its AI-driven software shift, Splunk integration, and recurring revenue transition. CSCO has appreciated by approximately 84.13% since our coverage. OppCost shares a similar view but emphasizes VIAV’s AI infrastructure testing and protocol validation focus.
Viavi Solutions Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held VIAV at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of VIAV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VIAV and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
