NVIDIA's Spectrum-X CPO Switches Enter Mass Production Amid Growing Demand

NVIDIA's Spectrum-X Co-Packaged Optics (CPO) switches have entered mass production, a major milestone for the tech giant. According to an investor report by Alicia Xia of GF Securities, NVIDIA has reached this critical production stage, with shipments expected to reach 100,000 units by 2027.

This development is significant not only for NVIDIA but also for its supply chain partners. Taiwan Semiconductor (TSM.US) has expanded its deployment of CPO testing and inspection equipment to support the robust capacity ramp-up. Key suppliers for Fiber Array Units (FAU), Shuffle Boxes, and system assembly are making good progress.

Furthermore, 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 Trainium 4 is likely to launch with three configurations, two of which will utilize NPO.

These 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).