CPO Delay Report Triggers Broad Sell-Off in Optical Interconnect Stocks; Nvidia Executives Deny Claims
Taylor Wilson
A Semi Analysis report flagged potential delays in CPO mass production, sending optical interconnect stocks sharply lower Tuesday — AAOI fell as much as 14% — but Nvidia executives at Computex directly contradicted the timeline, setting up a stark he-said-she-said for the sector.
What did the report say, and why did the market react so fast?
Institutional research firm Semi Analysis told clients that co-packaged optics (CPO) — a technology that embeds optical communication modules directly inside chip packages — may face delays to its mass-production timeline.
The report drew on conversations at Computex in Taipei last week. This means → it reflects industry insiders' collective read, not an official announcement from any chipmaker.
Markets moved fast because CPO is a linchpin of next-generation AI data-center networking; a delay pushes out revenue for every company in the supply chain.
Which stocks got hit hardest?
Applied Optoelectronics (AAOI) dropped as much as 14% intraday, the steepest fall. Coherent (COHR) fell 11%.
Corning (GLW) and Marvell (MRVL) each lost about 9%; Lumentum (LITE) fell 8%; Ciena (CIEN) fell 7%.
Networking giant Arista (ANET) dropped 3% and chip titan Broadcom (AVGO) slipped roughly 1.5% — the closer a company sits to the optical module itself, the harder it fell.
What did Nvidia say, and where does it contradict the report?
Nvidia networking SVP Gilad Shainer, interviewed at Computex, made no mention of any delay.
He stated explicitly: "We will accelerate CPO in the second half of this year — you will see more and more CPO deployments."
In plain terms = Semi Analysis says "delayed"; Nvidia says "accelerating." The two sources point in opposite directions.
How central is CPO to Nvidia's roadmap?
Shainer called co-packaged optics "the best technology for scale-out" and said Nvidia has already deployed it in the Feynman generation, is pushing it into Vera Rubin, and then the next Feynman.
Nvidia product marketing director Ashkan Seyedi added that the new CPO products "simplify the signal path and fundamentally change the economics and physical design of AI data centers."
This reflects Nvidia treating CPO not as an incremental component upgrade but as the core of an entire AI networking architecture shift.
What should investors watch next?
The core tension is clear: one institutional report vs. Nvidia executives' on-the-record statements, pointing in opposite directions.
Whether CPO — which boosts network reliability and efficiency by consolidating redundant interfaces — actually ships in volume in the second half will determine which side the market believes.
This means → the short-term sell-off already prices in the bearish scenario; second-half shipment data will be the referee between bulls and bears.
Content is for reference only, not financial advice.