Nvidia’s Optics Shift Is Arriving Early
GF Securities believes Nvidia (NVDA) is rolling out co-packaged optics faster than expected, and it sees Lumentum (LITE) as a key winner. Co-packaged optics build the light-based parts that move data into the chip's package itself. Near-packaged optics place them on the board nearby, where they're easier to replace. Both rely on lasers, which Lumentum supplies. GF said TSMC (TSM) has added testing capacity to support the ramp. It expects Nvidia to ship about 100,000 of these switches in 2027. For Lumentum, GF forecasts laser revenue from both technologies of about $928 million in 2027, rising to roughly $3.3 billion in 2028.
