According to the Zhitong Finance APP, JP Morgan pointed out that with the rise of artificial intelligence (AI), Co-Packaged Optics (CPO) technology and related companies are facing new development opportunities. CPO is an advanced technology that integrates optical devices and silicon chips on the same packaging substrate, aimed at addressing the challenges of the next generation in terms of bandwidth, power consumption, and cost.
The analyst team led by Samik Chatterjee stated that CPO has been a hot topic of discussion in the industry for many years. Although the potential advantages of this technology are significant, many experts have predicted that the commercialization of this technology would still take a long time due to high technical barriers and limited market demand (for example, existing technologies are sufficient to meet current applications).
However, analysts noted that with the development of artificial intelligence and the deployment of related infrastructure, the industry's attitude towards CPO has changed. The difficulty of balancing high data rates and power consumption with existing technologies has become increasingly prominent, making CPO the focus.
Analysts pointed out that CPO has clear advantages over traditional interconnection methods, especially in terms of performance and power consumption, while traditional technologies are gradually approaching physical limits. Despite these advantages of CPO, analysts also noted that it still faces challenges such as thermal management, reliability, and maintainability. However, ongoing progress in these areas, along with the industry's focus on the physical limits of traditional solutions, is driving the industry towards CPO. Analysts indicated that industry experts predict the CPO market will begin to grow significantly in 2027, with the market size exceeding $1 billion in 2028 and breaking $5 billion by 2030.
Analysts believe that the adoption of CPO may happen faster than initially expected. More and more suppliers are increasing their investments in CPO. However, despite investors' concerns about industry upheaval, analysts pointed out that key manufacturers in the optical supply chain will still play an important role in the development of CPO, so the market will not experience severe disruptions.
Analysts noted that companies benefiting from CPO include: Broadcom (AVGO.US), Coherent (COHR.US), Corning (GLW.US), Fabrinet (FN.US), Lumentum (LITE.US), Marvell Technology (MRVL.US), NVIDIA (NVDA.US), TSMC (TSM.US), UMC (UMC.US), Cisco (CSCO.US), and Advantest (ATEYY.US)

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JP Morgan pointed out that with the rise of artificial intelligence, Co-Packaged Optics (CPO) is facing new development opportunities. CPO technology has significant advantages in bandwidth, power consumption, and cost, and the market is expected to start significant growth in 2027, with the market size expected to exceed $5 billion by 2030. Benefiting companies include Broadcom and NVIDIA

- Morgan Stanley highlights that the rise of artificial intelligence (AI) presents new opportunities for Co-Packaged Optics (CPO) technology and related companies.  
- CPO integrates optical devices with silicon chips to address challenges in bandwidth, power consumption, and cost, with analysts noting a shift in industry attitudes towards CPO due to AI advancements.  
- The CPO market is expected to grow significantly, surpassing $1 billion by 2028 and $5 billion by 2030, with key companies like Broadcom, NVIDIA, and TSMC poised to benefit from this transition.

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Morgan Stanley: CPO technology is ushering in development opportunities, with Broadcom, NVIDIA, and others expected to benefit