Viavi Solutions Inc. (VIAV): A Bull Case Theory

We came across a bullish thesis on Viavi Solutions Inc. on Fabian's Substack by Phabian. In this article, we will summarize the bulls’ thesis on VIAV. Viavi Solutions Inc.'s share was trading at $26.33 as of February 19th. VIAV’s trailing and forward P/E were 85.13 and 32.68 respectively according to Yahoo Finance.

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Viavi Solutions Inc. (VIAV) has emerged as a critical enabler of the next optical infrastructure cycle as the industry transitions from 800G to 1.6T and eventually 3.2T Ethernet, where validating signal integrity, thermal stability, and protocol compliance becomes increasingly complex. The company traces its roots to the former test and measurement division of JDS Uniphase, which separated in 2015 into Viavi and Lumentum Holdings Inc., allowing each entity to specialize in different layers of the optical ecosystem.

While Lumentum supplies photonic components and lasers for hyperscale data center interconnects, Viavi provides the instrumentation required to verify performance against IEEE and OIF standards, positioning it as the validation layer that enables deployment of high-speed optics. As networking speeds scale to 224G per lane using PAM4 modulation, margins shrink and error tolerance relies on advanced testing methodologies such as stressed receiver sensitivity, symbol error rate analysis, and full-module system validation, areas where Viavi’s ONT-800, ONE LabPro, and MAP-300 platforms are deeply embedded across R&D and manufacturing workflows.

The company is also expanding into wafer-level testing and co-packaged optics collaborations, which could become essential as optical integration moves closer to ASIC packages. Financially, the AI infrastructure boom is already driving momentum, with fiscal Q2 2026 revenue rising 36% year-over-year and margins expanding meaningfully, supported by hyperscaler demand and the acquisition of high-speed Ethernet assets from Spirent Communications.

Despite competition from larger players like Keysight Technologies and specialists such as Anritsu Corporation and EXFO Inc., Viavi maintains a durable niche through precision optical metrology and entrenched validation workflows. Overall, as AI data center architectures push physical limits, Viavi represents a leveraged but underappreciated beneficiary of the optics supercycle, with trusted technology, growing demand visibility, and moderate upside potential.

CSCO's stock price has appreciated by approximately 22.90% since our coverage. Phabian shares a similar view but emphasizes on Viavi Solutions Inc.’s positioning in AI-driven optical validation.

Viavi Solutions Inc. is not on our list of the 

. As per our database, 28 hedge fund portfolios held VIAV at the end of the third quarter which was 21 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.