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Lumentum to Benefit from Nvidia's Accelerating Co-Packaged Optics Scale-Out

Guavy AI Editorial Team Published September 29, 2026

Instruments

NVDA

Nvidia's co-packaged optics (CPO) scale-out is accelerating faster than expected, according to GF Securities. Analyst Alicia Xia noted that TSMC has expanded its CPO testing and inspection capacity, which should support the ramp of Nvidia's CPO switch shipments. These shipments are forecast at 15k/16k/30k/100k for 4Q26/1Q27/2Q27/2027.

Lumentum is expected to benefit significantly from this development, with estimated revenue from CPO and near-packaged optics (NPO) set to accelerate dramatically year-over-year from 2027 to 2028. In 2027, Lumentum is forecast to generate $427M in CPO laser revenue and $501M in NPO laser revenue.

The adoption of NVL576-based scale-up CPO/NPO systems is expected to begin in the second half of 2027, with two switchboards per NVSwitch tray carrying four ASICs paired with four 3.2T OEs/ASIC. GF Securities reiterates its view that CPO and NPO are progressing in parallel.

Lumentum to Benefit from Nvidia's Accelerating Co-Packaged Optics Scale-Out

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