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The pace of artificial intelligence infrastructure investment is showing no signs of slowing, and investors are increasingly looking to companies outside the chipmakers like Nvidia (NVDA) and into the companies enabling next-generation networking. One such company, which is seeing renewed interest, is Lumentum Holdings (LITE), as GF Securities highlighted it as one of the key beneficiaries of Nvidia’s co-packaged optics push.
Nvidia used this year’s GTC 2025 conference to launch its Quantum-X and Spectrum-X scale-out switch, which will likely be the precursor to further adoption of optical interconnection technology. This, in turn, should see the next-generation 115.2T CPO switch arrive in 2026, with supply chain acceleration through 2027, which should be a boon to optical component companies such as Lumentum.
