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Keysight Soars on AI Data Center Demand
19 Aug
Summary
- Keysight forecasts Q4 profit and revenue exceeding analyst expectations.
- Strong demand from AI data center buildouts fuels Keysight's growth.
- Company anticipates Q4 revenue between $1.93B and $1.95B.
Santa Rosa, California-based Keysight Technologies is anticipating a strong fourth quarter, with projections for both profit and revenue surpassing market expectations. This positive outlook, announced on Tuesday, August 18, is largely attributed to the significant expansion of AI data centers.
The company's forecast suggests adjusted profit per share will range from $3.34 to $3.40, with revenue expected to be between $1.93 billion and $1.95 billion. These figures exceed the consensus estimates of $2.70 per share for profit and $1.81 billion in revenue.
Keysight, which provides essential electronic design, testing, and simulation software to industries like chipmaking, telecommunications, and automotive, is experiencing heightened demand. The ongoing buildout of AI infrastructure is a primary driver for its software and tools, as evidenced by the nearly 5% surge in its stock price following the announcement.
