On March 11, the Science and Technology Innovation Board Daily reported that the CPO market continues to be hot, with multiple stocks including HuiLv Ecology, Ruisi Kanda, Huagong Technology, and Guangxun Technology having accumulated gains of over 10% since this week.
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In terms of news, Jensen Huang published a lengthy blog post titled &#34;AI is a five layer cake,&#34; in which he stated, &#34;We have only just begun this construction. We have already invested hundreds of billions of dollars. There are trillions of dollars of (AI) infrastructure that need to be built.&#34;
In Huang's view, the AI industry architecture is like a five-layer cake, consisting of energy, chips, infrastructure, models, and applications. &#34;Looking globally, we see chip factories, computer assembly plants, and AI factories being built on an unprecedented scale. This is becoming the largest infrastructure construction in human history,&#34; he said.
Today, TrendForce's latest research on the high-speed interconnect market pointed out that Nvidia's next-generation AI computing cabinet architecture shows that the future focus of GPU design will shift towards higher density chip interconnects and faster data transmission. Chip interconnects within cabinets (Scale-Up) and large-scale interconnects across cabinets (Scale-Out) will become core issues in planning data centers.
On this basis, traditional electrical transmission solutions using copper cables cannot meet the ultra-large-scale data transport demands due to physical limitations, thus creating development space for optical transmission solutions. TrendForce estimates that the penetration rate of CPO (Co-Packaged Optics) in AI data center optical communication modules will grow year by year, with a chance of reaching 35% by 2030.
This Monday, Bank of America pointed out in a research report that as AI workloads place higher performance demands on traditional copper conductors, the optical interconnect market is expected to quadruple to $73 billion by 2030. Bank of America analyst Vivek Arya expects Nvidia to lead this transformation and potentially become the first integrated system supplier to replace traditional copper-based server backplanes with CPO (Co-Packaged Optics).
Next week, Nvidia's highly anticipated annual developer conference (GTC 2026) will be held as scheduled in San Jose, California. Nomura Orient International Securities emphasized that investors will look forward to Nvidia announcing more roadmap details on Co-Packaged Optics (CPO) technology, while also paying attention to information related to its infinite bandwidth (Quantum-X) and Ethernet (Spectrum-X) co-packaged optical switches suitable for horizontally scalable networks, as well as official announcements from potential supply chain partners.
Previously, Nvidia invested $2 billion each in Coherent and Lumentum and signed long-term strategic procurement agreements to jointly develop the next generation of silicon photonics technology. Guotou Securities believes that Nvidia's move aligns closely with its strategic deployment to introduce CPO technology into its data center switch product line by 2025
Guojin Securities pointed out that NVIDIA's strategic determination is firm, binding capital to upstream core capacity, and the demand for optical interconnection in the scale-up domain has significantly increased. This move aims to quickly resolve supply chain bottlenecks and support the large-scale implementation of the next generation of AI clusters.
Guolian Minsheng Securities stated that GTC 2026 and OFC 2026 are approaching, which will define several future benchmarks for the optical communication industry. The core focus is on technological advancements: mass production and evolution of traditional optical modules 1.6T and 3.2T, co-packaged optical CPO and optical I/O, optical circuit switching (OCS), and the new generation of optical fibers and space communication. CPO will dominate in scale-up networks, with attention on the technological routes and partner manufacturers of CPO leaders like NVIDIA and Broadcom regarding core components such as optical engines/external laser modules.
(Ke Chuang Ban Daily, Zhang Zhen)

NVDL

NVDU

Jensen Huang mentioned in a blog post that the construction of AI infrastructure still requires trillions of dollars, emphasizing the importance of CPO technology. TrendForce predicts that NVIDIA's next-generation AI computing architecture will drive the development of optical transmission solutions, with the penetration rate of CPO in AI data centers expected to reach 35% by 2030. This week, related stocks rose more than 10%, as investors anticipate more details on CPO technology to be announced at the GTC conference

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Jensen Huang's long article ignites CPO enthusiasm as NVIDIA GTC is about to be held, which may reshape the direction of the optical communication industry