Viavi Solutions Taps 45% Data Center Revenue with New Ethernet Test Suite
Viavi Solutions generates 45% of revenue from its Network and Service Enablement segment serving data center ecosystems and has expanded its optical testing portfolio through a high-speed Ethernet testing acquisition. Rising AI and hyperscale capex will drive demand for updated optical testing equipment as networks adopt faster connection speeds.
1. Hyperscale AI Infrastructure Growth
Capital spending by hyperscale cloud providers on AI networking is rising as data centers require higher speeds and greater reliability. Investment in backbone and intercampus connections is expected to remain strong through 2026, supporting suppliers across the optical networking and testing supply chain.
2. VIAVI Solutions Revenue Exposure
VIAVI Solutions derives about 45% of its Network and Service Enablement segment revenue from the data center ecosystem, including optical modules and semiconductor components. This exposure positions VIAVI to capture a significant share of the growing demand for AI networking deployments.
3. Ethernet Testing Acquisition
The company recently added high-speed Ethernet testing products through a strategic acquisition, broadening its portfolio to support new optical speeds. This move enables VIAVI to offer end-to-end compliance and performance testing for the next generation of data center connections.
4. Demand for Faster Optical Testing
As networks transition to 400G, 800G and beyond, each new speed generation requires updated validation tools. Growth in AI compute clusters and intercampus links will drive long-term demand for VIAVI’s expanded testing suite, underpinning its service enablement segment growth.