Viavi Solutions Inc. (NASDAQ:VIAV) is featured in Mad Money’s latest recap as Jim Cramer shared his buy, sell, or hold verdict. A caller sought Cramer’s opinion on the stock, and he remarked:
No, I gotta tell you, you’re right, you’re right. I mean, I know it’s expensive, but I’ll tell you, that is the hot area, and I’m not going to disagree with. Let the stock cool a little. I would because the stock was up a couple of bucks today. But yeah, I think you’re onto something with that stock.
Stock market data. Photo by Burak The Weekender on Pexels
Viavi Solutions Inc. (NASDAQ:VIAV) provides testing, monitoring, and security tools, as well as advanced optical coating technologies, for sectors such as telecommunications, aerospace, and defense. Madison Investments stated the following regarding Viavi Solutions Inc. (NASDAQ:VIAV) in its fourth quarter 2025 investor letter:
Small cap initiated a new investment in the test and measurement company Viavi Solutions Inc. (NASDAQ:VIAV). Viavi’s test and measurement solutions provide network test, monitoring, and assurance solutions for telecommunications, cloud, enterprise, aerospace, defense, and industrial markets. The company operates through two primary segments: Network and Service Enablement (NSE): Offers test and measurement instruments, software, and services for wireless, wireline, cloud, data center, and military markets. Optical Security and Performance Products (OSP): Provides optical coatings and components used in anticounterfeiting, 3D sensing, automotive, and industrial applications. Test and measurement is a very sticky business with substantial moats, making strategic mergers and acquisitions an important driver of growth and moat expansion. In early 2024, Viavi Solutions made an initial $1.3 billion bid to acquire Spirent Communications, a UK-based provider of network testing and assurance solutions. Shortly after, Keysight Technologies countered with a higher bid of $1.46 billion, which Spirent accepted. The U.S. Department of Justice (DOJ) raised antitrust concerns, noting that Keysight and Spirent together controlled 85% of the high-speed Ethernet testing market, 60% of the network security testing market, and 50% of the radio frequency channel emulation market. To resolve these concerns, the DOJ required Keysight to divest its overlapping business units to Viavi under a consent decree. This deal closed on October 16, and we believe the Spirent assets will strengthen Viavi’s position in the data center ecosystem and accelerate growth and margin expansion. We believe the market does not yet fully appreciate Viavi’s vast opportunity in the data center market. We estimate the stock’s intrinsic value to be $30.
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.
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