Keysight Technologies (KEYS) just put fresh AI and data center tools in front of engineers by rolling out a PCIe 7.0 protocol test platform and multi vendor Link Layer Retry interoperability demos at the OCP Global Summit.
Those OCP announcements arrive after a sharp run, with Keysight Technologies posting an 82.83% year to date share price return and a 131.22% total shareholder return over 1 year. The past month’s 11.53% share price gain suggests momentum has recently picked up despite a modest pullback over the last week.
Spot similar AI and data center stories by scanning our hand picked 92 AI infrastructure stocks that could benefit from the same demand drivers lifting interest in Keysight Technologies.After a near 83% year to date surge and fresh AI test platforms grabbing attention, Keysight Technologies now forces a tougher question: Does the current price still reward new risk, or mainly those already on board?
Most Popular Narrative: 9% Undervalued
On the widely followed narrative, Keysight Technologies carries an illustrative fair value of $415.08 against a last close of $377.70. This frames recent AI excitement inside a valuation that still points to upside in the model.
Expansion of software, simulation and recurring service offerings is advancing, with software and services reaching roughly 33% of Q3 2026 revenue, annual recurring revenue at 24% of mix and the simulation business expected to exceed US$0.5b in 2026. This supports high gross margins near the upper 60s percentage range and contributes to operating margin strength.
See why 19 investors see Keysight Technologies as 9% undervalued.
Result: Fair Value of $415.08 (UNDERVALUED)
Still, the Keysight Technologies story can change quickly if supply bottlenecks keep deferring roughly US$100m of orders, or if Spirent integration benefits arrive slower and leaner than expected.
Find out about the key risks to this Keysight Technologies narrative.
Another View: What Multiples Say About Keysight Technologies
There is a catch. Keysight Technologies trades on a P/E of 50.3x, which is well above the US Electronic industry at 30.3x, the peer average at 43.4x and the fair ratio at 35.3x. That gap leans toward valuation risk if sentiment cools rather than extra upside.
Investors weighing that premium may want to see what the numbers say about this price in a fuller valuation breakdown, starting with the See what the numbers say about this price — find out in our valuation breakdown..
Next Steps
Mixed messages on Keysight Technologies so far, with valuation signals, AI catalysts and rich multiples all pulling in different directions. Act while sentiment is live by reviewing both the upside and downside; start with the 2 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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