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Mizuho Securities: CPO Long-Term Trend Unchanged, but True Alpha Lies in Transitional Beneficiaries, Not Just Endgame Winners

2026.06.17 18:05:35

On June 17, Mizuho Securities released a new report addressing market jitters over delays to two key technologies: Co-packaged Optics (CPO) and 800VDC High-Voltage DC. The firm notes that while CPO’s long-term trajectory remains intact, the real alpha will come from beneficiaries during the transition phase—not just the eventual leaders. Both CPO and 800VDC are critical upgrades for AI servers over the next half-decade: CPO cuts power use and latency drastically, while 800VDC boosts single-rack power from 60kW to above 600kW. That said, full-scale deployment will take time, and market nervousness is overblown. The report reiterated medium- to long-term upside for stocks including LITE, AVGO, AAOI, and CRDO. Bottom line: CPO and 800VDC aren’t “delayed”—they’re rolling out in phases. The sweet spot for 2026–2027 is capturing transitional dividends from NPO and ±400VDC before shifting to the final technologies. AI server rack power density demand keeps climbing, so the key is to map out this “ladder” clearly instead of putting all eggs in one basket.
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