Is Viavi Solutions (VIAV) Cheap Following Its ECOC 2026 AI Network Push?

Viavi Solutions (VIAV) is back in focus after the ECOC 2026 conference, where the company showcased a broad suite of test tools for 1.6T data center, AI fabric, and advanced optical networks.

Despite the ECOC headlines, Viavi Solutions shares have cooled recently, with the 7-day share price return down 8.75% and the 90-day move down 33.21%. However, the year-to-date share price return of 94.82% and 1-year total shareholder return of 188.89% still point to strong longer term momentum.

Spot fresh AI infrastructure momentum by comparing Viavi Solutions with a hand-picked 88 AI infrastructure stocks that is shaping the next wave of high-speed data centers and optical networks.

The recent pullback leaves Viavi Solutions trading well below both its recent peak and many published fair value marks. Is that gap justified, or does the valuation now look out of line with the fundamentals?

Most Popular Narrative: 42% Undervalued

On the most followed view of Viavi Solutions, a fair value of $61.43 sits well above the recent close of $35.36, so the narrative hinges on whether future cash generation can bridge that gap.

Viavi is experiencing robust and sustained demand across the data center ecosystem, with customers updating optical connectivity to 400G, 800G, and now 1.6T, enabling multi-year upgrade cycles and expanding its total addressable market, which should drive structural revenue growth through 2026 and beyond. The rapid proliferation of fiber broadband deployments for both hyperscale data interconnect and traditional carrier networks, coupled with aggressive announced spending by North American fiber operators, points to a significant near-term acceleration in fiber-related test equipment orders, supporting higher future revenues.

See why 13 investors see Viavi Solutions as 42% undervalued.

Result: Fair Value of $61.43 (UNDERVALUED)

Still, if wireless test demand stays weak and recent acquisitions fail to deliver expected benefits, the Viavi Solutions upside story could quickly lose credibility.

Find out about the key risks to this Viavi Solutions narrative.

Another View: SWS DCF Model Flags Less Upside

The first narrative paints Viavi Solutions as materially undervalued, yet the Simply Wall St DCF model points the other way. On that future cash flow view, the shares at $35.36 sit above an estimated value of $27.89. This frames the current price as richer rather than cheap. Which story do you trust more, the cash flow model or the growth narrative?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Viavi Solutions for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 35 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around Viavi Solutions create urgency for you to look directly at the numbers and sentiment, then decide whether the story stacks up. To weigh both caution and optimism side by side, start with the 2 key rewards and 2 important warning signs.

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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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