Nvidia (NVDA.US) Spectrum-X CPO switches enter mass production phase, expected shipments reaching 100,000 units by 2027, related concept stocks in the industry chain anticipated to benefit.

According to Jinse Finance APP, NVIDIA (NVDA.US) recently revealed that its Spectrum-X CPO (co-packaged optics) switch for scale-out has now entered mass production.

GF Securities analyst Alicia Xia stated in an investor report on Monday: “To support strong capacity ramp-up, TSMC (TSM.US) has significantly expanded the deployment of its CPO testing and inspection equipment, especially by increasing Insertion 2/3 capacity. In addition, key suppliers such as FAU (fiber array), Shuffle Box, and system assembly are making good progress. We maintain our prediction that NVIDIA scale-out CPO switch shipments will reach 15 thousand units and 100 thousand units in the estimated fiscal years 2026 and 2027, respectively.”

Additionally, NVIDIA's scale-up (vertical scaling) CPO/NPO (near-packaged optics) based on NVL576 is expected to be adopted starting in the second half of 2027.

Meanwhile, Amazon's (AMZN.US) Trainium 4 may launch in three configurations, with two expected to use NPO.

Alicia Xia pointed out, “One design is based on ALAB PCIe Gen7, and another is based on the UALink switch chip. The 64-card system based on UALink is expected to become the mainstream form, while PCIe Gen7 might serve as an early solution. We also expect Trainium 4 to adopt NVIDIA’s NVLink Fusion, which could deploy NPO similar to the NVL576 design.”

These developments will benefit multiple component suppliers, including Lumentum (LITE.US), Coherent (COHR.US), Semtech (SMTC.US), Marvell Technology (MRVL.US), and Tower Semiconductor (TSEM.US).