NVIDIA announces that Co-packaged Optics (CPO) has entered mass production, with related concept stocks likely to see a rebound.

Nvidia Senior Vice President Gilad Shainer announced at a recent tech forum that Co-packaged Optics (CPO) has entered mass production. Switches developed by Nvidia in collaboration with its supply chain have begun delivery to key partners and are already deployed internally at the company. Switches equipped with CPO technology are expected to be widely deployed in AI data centers globally starting this year. Shainer noted that the biggest opportunity in the future optical communications market lies in vertical scaling (Scale-up), which requires over ten times the bandwidth efficiency of horizontal scaling (Scale-out). Shainer previously led R&D at Mellanox; after Nvidia acquired the firm, he headed the AI Platform Network Transmission division and co-developed the COUPE silicon photonic packaging platform with TSMC. This announcement helps dispel market concerns over optical communications specification upgrades and boosts the operational outlook for related vendors. It is reported that Nvidia has already integrated CPO into its Spectrum-X switches, with the goal of supporting the upcoming large-scale deployment of the Vera Rubin AI platform, which delivers at least three times the computing speed of the GB300. Trendforce projects that the CPO/NPO market will exceed $39 billion by 2030, with growth momentum accelerating significantly between 2028 and 2029 as vertical scaling drives the adoption of optical interconnects. Separately, according to BIT (bit.com) market data, as of press time, CPO-related stocks posted modest pre-market gains: AAOI rose 2.63%, LITE gained 1.92%, and MRVL increased 2.4%.