Keysight Technologies, Inc. KEYS recently announced that it has entered into an agreement to provide its electronic design automation (EDA) software to six of the eight hubs involved in the U.S. Microelectronics Commons (Commons) initiative. This collaborative effort is part of the broader $2 billion, four-year program established under the CHIPS and Science Act to accelerate the development and prototyping of domestic microelectronics hardware, as well as to foster workforce development within the industry.

Elaborating Further on KEYS New Development

The agreement follows the formation of the Cross Hub Enablement Solution Working Group, which was established to centralize the EDA infrastructure for the hubs involved. Spearheaded by the Midwest Microelectronics Consortium, this group will host the centralized infrastructure and ensure that Keysight’s software is accessible to the various research teams and organizations involved. 

In addition to the EDA software, Keysight's tools will include design data and intellectual property (IP) management solutions, as well as various test and measurement applications. Keysight Design Data Management offers optimal file archiving, advanced revision control, disk storage optimization and seamless integration with other EDA vendors' tools, while the IP Management facilitates efficient IP management, reuse and traceability, enabling engineers to organize, catalog and track valuable IPs across design projects. These resources will likely enable the hubs to streamline their research and development processes, facilitating the transition from early-stage concepts to commercialized products.

Does KEYS Stock Stand to Gain From the Collaboration?

Keysight is gaining from strong industry-wide growth. The company is witnessing solid adoption of its electronic design and test solutions. Its comprehensive suite of solutions is particularly valuable for microelectronics development, offering industry-leading expertise in RF and microwave design, which is critical for ensuring first-pass design success. By leveraging Keysight’s simulation, measurement, and design data management capabilities, engineers can seamlessly correlate results across the design, simulation, and testing phases, reducing risks and improving overall efficiency. 

These advancements are expected to generate incremental demand for Keysight’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.

KEYS’ Stock Price Performance

Shares of Keysight have gained 10.7% over the past year compared with the industry’s growth of 9.1%.

Image Source: Zacks Investment Research

KEYS’ Zacks Rank and Stocks to Consider

Keysight currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Arista Networks, Inc. ANET carries a Zacks Rank of 2 (Buy) at present. It supplies products to prestigious customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, ANET delivered an earnings surprise of 14.83%. It has a long-term growth expectation of 16%. 

Workday Inc. WDAY carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a top supplier of enterprise-level software solutions for the fields of human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system. 

Ericsson ERIC carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 22.22%. A leading provider of telecom services, communication networks, and support solutions, Ericsson is also diversifying into the provision of ICT (information and communications technology) solutions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ericsson (ERIC) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research