Company Overview - Keysight Technologies, Inc. (KEYS) has partnered with Coherent Corp. to enhance the performance of new vertical-cavity surface-emitting laser (VCSEL) technology, which supports higher data rates and reduces power consumption and capital expenditure for short-reach data interconnects [1][4] - The company is experiencing solid growth in orders for its testing equipment, particularly in the context of 5G network emulation solutions that offer cost-efficient testing techniques [5] Industry Context - The demand for AI/ML services has led to a significant increase in data transfer requirements within data centers, making optical interconnect costs a major component of capital expenditures [2] - The introduction of multimode VCSEL technology addresses the challenges of traditional single-mode transmission by providing enhanced data transfer and network efficiency [2][4] Technological Advancements - Keysight's next-generation wideband multimode sampling oscilloscope and M8199B 256 GSa/s Arbitrary Waveform Generator (AWG) enable the new VCSEL technology to achieve a data transfer rate of 200 GBPS, effectively doubling the current highest-speed multimode interconnects [3] - The new technology is more affordable to manufacture than single-mode technologies and significantly reduces power consumption per bit, which is beneficial for large-scale data centers [4] Market Position - Keysight has a strong presence in over 100 countries and is expected to benefit from an increasing customer base, which may lead to higher revenues in the upcoming quarters [6] - Despite a 2.5% decline in stock price over the past year, the company is positioned for improved financial performance [7]