VIAV Should I Buy
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Viavi Solutions Inc (VIAV) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock demonstrates strong bullish technical indicators, positive analyst sentiment with increased price targets, and a growing presence in the AI and data center ecosystem. Despite recent financial losses, the company's revenue growth and strategic positioning in high-demand markets provide a compelling long-term growth opportunity.
The technical indicators for VIAV are bullish. The MACD histogram is positive and expanding, the RSI is neutral but leaning towards overbought territory, and the moving averages show a bullish alignment (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level of 46.053, with further resistance at 48.257.
Analysts have consistently raised price targets, citing strong demand for AI optical connectivity and data center growth.
Viavi's innovations in testing and navigation for AI data centers position it well in a high-growth market.
The broader tech sector rebound following geopolitical stability adds momentum.
The company's financial performance shows significant net income and EPS declines in Q2 2026, indicating potential profitability challenges.
Gross margin has decreased, which could impact future earnings.
In Q2 2026, Viavi reported a 36.37% YoY revenue increase to $369.3M, but net income dropped significantly to -$48.1M, with EPS declining to -$0.21. Gross margin also decreased to 55.32%, down 6.25% YoY.
Analysts maintain a positive outlook on VIAV, with multiple firms raising price targets significantly over the past few months. The most recent target from Northland is $50, citing continued AI optical connectivity demand and growth opportunities in data centers and aerospace sectors.
