NVIDIA's Spectrum-X CPO Switches Enter Mass Production
NVIDIA's (NVDA.US) Spectrum-X Co-Packaged Optics (CPO) switches have entered mass production, signaling a significant boost for related stocks in the supply chain. According to analyst Alicia Xia of GF Securities, Taiwan Semiconductor (TSM.US) has expanded its deployment of CPO testing and inspection equipment to support robust capacity ramp-up.
The expansion includes increased capacity for Insertion 2/3, as well as progress from key suppliers for Fiber Array Units (FAU), Shuffle Boxes, and system assembly. Xia maintains a forecast for NVIDIA's scale-out CPO switch shipments to reach 15,000 units in 2026E and 100,000 units in 2027E.
NVIDIA's scale-up CPO/Near-Packaged Optics (NPO) solutions based on the NVL576 architecture are expected to begin adoption in the second half of 2027. Amazon's (AMZN.US) Trainium 4 is likely to launch with three configurations, two of which will utilize NPO.
The developments will benefit several component suppliers, including Lumentum (LITE.US), Coherent (COHR.US), Semtech (SMTC.US), Marvell Technology (MRVL.US), and Tower Semiconductor (TSEM.US).