Morgan Stanley Says This AI Pick and Shovel Stock Has 25% Upside

Keysight Technologies said its RFPro electromagnetic design software has been certified for Intel Foundry’s 14A and 18A-P process technologies, allowing chip designers to simulate performance before manufacturing. The company said this builds on existing support for Intel’s 18A and EMIB-T packaging. The article notes KEYS shares fell about 3.6% to $307.25 and Intel about 3.1% to $89.47.

Keysight Technologies (NYSE: KEYS) was selected by the European Space Agency to lead a three-year ESA ARTES program developing a blockchain-enabled, secure anomaly detection framework for 5G non-terrestrial networks. Keysight will work with Sateliot on technical development and satellite mission integration, aiming to support trusted NTN operations and future 6G/AI network assurance.

Wall Street analysts issued multiple rating changes. JPMorgan raised American Express (AXP) to Overweight, PT $400. Truist upgraded Biogen (BIIB) to Buy, PT $235, citing upcoming Phase 2 and Phase 3 readouts. JPMorgan also raised Keysight (KEYS) to Overweight, PT $400. Other actions included upgrades for Humana (HUM) and downgrades for Papa John’s (PZZA) and Best Buy (BBY).

Cybeats Technologies Corp. reported Q1 fiscal 2026 results for the three months ended March 31, 2026. Revenue rose to $763,679 from $681,128 (+12%). Net loss widened to $2,430,993 from $1,185,102, with cash expenses down ~15% to $1,620,766. Cash fell to $1,072,900 from $2,751,202. The company also cited a Keysight OEM partnership and an automotive contract, and said it aims to reach ~$5M ARR by end of Q2 2026.

Keysight Technologies said its RF Circuit Simulation Professional software now includes an “executable whiteboard” that captures an engineer’s RF design workflow—simulations, optimizations, decision trees, and parameters—into editable Python code. Keysight says the code can be saved, shared, and reused across Keysight ADS, Cadence Virtuoso, and Synopsys Custom Compiler. The company cited McKinsey’s estimate of an 88,000-engineer semiconductor gap by 2029.

Keysight reported Q1 CY2026 revenue of $1.72B (vs $1.70B est) and adjusted EPS of $2.87 (vs $2.32 est), with adjusted EBITDA of $608.7M. Management attributed results to AI data center infrastructure growth, commercial communications strength, and momentum in aerospace/defense/semiconductors. Q2 guidance calls for $1.74B revenue and $2.46 adjusted EPS at the midpoint, both above estimates.