10:36 AM EDT, 07/13/2026 (MT Newswires) -- Keysight Technologies ( KEYS ) is set to benefit from the surge in AI infrastructure spending due to its architecture-agnostic exposure, Morgan Stanley said in a Monday note.

The increase of different designs in AI architecture raises the test intensity and widens the number of customer programs that Keysight ( KEYS ) can serve, Morgan Stanley analysts said, noting that the company has more than 50% of its revenue come from research and development as well as lab use cases.

Keysight ( KEYS ) offers lower volatility compared to other firms in the AI space, as its growth is not limited to AI, serving other sectors such as aerospace & defense, semiconductor test, and wireless communications, according to the note. Each end market carries its own multi-year investment case, the analysts said.

Further, the positive impact of AI tailwinds appears underappreciated, as AI revenue has grown to an estimated mid-teens percentage of revenue in H1 from around 10% at the end of 2025, the firm noted. The company's customer base is also expanding across R&D and manufacturing, the analysts added.

Morgan Stanley upgraded the company's stock rating to overweight from equal-weight and raised the price target to $400 from $350.

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