Viavi Solutions shares jump 500% in a year on AI data center demand and improved profitability.

Viavi Solutions Inc. saw its stock price rise nearly 500% over the past year, driven by strong demand for its high-speed optical testing equipment used in AI data centers. The company's profitability has improved, with an adjusted operating margin of 21% and adjusted earnings per share up 80% year-over-year, although GAAP earnings remain low due to significant charges. Viavi's OSP segment offers more stability and could help balance risks if AI data center demand slows, while the NSE segment remains cyclical. With a high forward price-to-earnings ratio of 59, investors are advised to wait for further profitability gains or diversification before buying shares.