Keysight Technologies (KEYS) Truist Technology Symposium: AI Transformation & Evolving Enterprise Debates summary

Business overview and market positioning

• Provides hardware and software solutions for industries employing electrical engineers, focusing on R&D labs and manufacturing applications.

• Major markets include AI data centers, 5G/6G wireless, aerospace defense, electronics, autonomous driving, and semiconductors.

• Over half of revenues come from R&D lab sales, with additional streams from manufacturing and operational applications.

• Communication Solutions Group (CSG) comprises commercial communications and aerospace defense, leveraging shared R&D across segments.

• CSG serves a broad customer base, including chipset vendors, device makers, network equipment manufacturers, hyperscalers, and satellite operators.

Strategic priorities and growth drivers

• Sustaining AI momentum, capitalizing on speed transitions (1.6T/3.2T), and advancing silicon photonics and system-level emulation.

• Preparing for 6G ramp, with inflection expected in 2028, and expanding in aerospace defense, especially in the EU and Americas.

• Focused on executing R&D programs, ramping internal capacity, and managing supply chains to meet robust demand.

• Emphasis on tactical sales execution and maximizing value capture in a rapidly evolving market.

AI and data center opportunities

• AI opportunity structured around infrastructure scaling, speed transition, silicon photonics, and system-level emulation.

• Speed transitions and system emulation are current revenue drivers; silicon photonics expected to scale in coming years.

• Hyperscalers directly account for ~10% of sales but drive significant downstream ecosystem business.

• Differentiation comes from hardware-intensive emulation and broad ecosystem exposure, making internal replication by hyperscalers less attractive.