NVIDIA Announces Mass Production of Co-Packaged Optics (CPO), Related Concept Stocks May See a Rebound

BlockBeats News, August 3rd - NVIDIA's Senior Vice President, Gilad Shainer, announced at a recent technology forum that the CPO has entered the mass production stage. The switches developed by NVIDIA in collaboration with the supply chain have started shipping to closely partnered customers and are being deployed in-house. It is expected that starting this year, switches featuring CPO technology will be widely adopted in AI factories worldwide.

Shainer pointed out that the future's largest business opportunity in the optical communication market lies in vertical scale-up, where the required bandwidth efficiency will be more than ten times that of horizontal scale-out. Shainer previously led R&D at Mellanox, and after the company was acquired by NVIDIA, he headed the AI platform networking transport department, collaborating with TSMC to develop the COUPE silicon photonics packaging platform. This announcement helps dispel market doubts about the upgrade of optical communication specifications and boosts the operational outlook of related vendors.

It is reported that NVIDIA has already implemented CPO in Spectrum-X, aiming to complement the upcoming large-scale deployment of the Vera Rubin AI platform (with computing speed at least three times higher than the GB300). Trendforce estimates that the CPO/NPO market will exceed $39 billion by 2030, and from 2028 to 2029, as optical interconnect scale-up is introduced, the growth momentum will significantly accelerate.

According to BIT (bit.com) market data, as of the time of writing, stocks related to the CPO concept have seen a slight pre-market increase, with AAOI up 2.63%, LITE up 1.92%, and MRVL up 2.4%.