Viavi Solutions (VIAV) Dives 3.33% on Profit-Taking After 28.7% Surge from Spirent Acquisition

Viavi Solutions (VIAV) fell to its lowest level so far this month on Nov. 4, with an intraday decline of 3.33%.

The stock’s recent volatility follows a 28.7% surge on Nov. 3, driven by a strategic acquisition of Spirent product lines from Keysight Technologies, which expanded its offerings in network testing and 5G infrastructure. The deal, described as “highly complementary” by CEO Oleg Khaykin, is expected to strengthen the company’s position in the data center ecosystem. Viavi also reported a 25% year-over-year revenue increase in Q1 FY2026, though net losses widened to $21.4 million, attributed to integration costs and R&D spending. Analysts at Stifel upgraded the stock to $18 from $15, retaining a “buy” rating, citing growth in data center and aerospace/defense markets.

Despite the positive fundamentals, the stock’s sharp pullback on Nov. 4 suggests investor caution. The recent rally, fueled by strategic bets on AI-driven data demand and 5G expansion, may have attracted speculative buying, leading to profit-taking. While Viavi’s revised Q2 revenue guidance of $360–$370 million reflects confidence in sustained demand, its ability to translate growth into profitability remains a key watchpoint. The stock’s alignment with high-growth sectors positions it for long-term upside, but near-term volatility underscores the balance between strategic investments and financial discipline.