Recently, there have been many adjustments in the optical interconnect sector. In fact, the most profound insight into optical interconnect recently is the battle for data center connectivity by Bernstein in the middle of the month. The core of this report is actually the investment pace in the optical interconnect field. 1. The bottleneck of AI data centers is shifting from "fast computing" to "fast, stable, and energy-efficient connectivity". CPO is the direction, but it is more likely that the transition phase of LPO/NPO will begin to deliver performance in 2026- cloud vendors will not sacrifice system reliability and maintainability for energy conservation. Bernstein mentioned in communication with Zhongji Xuchuang that there are currently no cloud vendors planning to deploy CPO on a large scale in 2026-2027. 2. CPO is the direction, but the more realistic revenue in 2026 will be 1.6T, LPO/NPO, light sources, testing PCB、ABF、CCL。 Light will not immediately destroy copper, and copper will not forever hold all scenes; Different distances and system levels will choose different solutions. 3. So we need to distinguish which cash flows have already been cashed out? What are the stories that have not been fulfilled yet? For a market that has already gone through a round of expected speculation, the focus is on seeing the status of these cash flows that have already been cashed out and the pace of business implementation. 4. The real impact of CPO is to shift the profit pool from traditional module packaging to chips, packaging, light engines, light sources, testing, and system platforms. So when investing in AI connectivity, don't buy the hottest concepts, buy the most difficult bottlenecks to bypass. 5. There are three time points that need to be closely monitored regarding the concept of CPO: 1) In the second half of 2026, Nvidia QuantimX CPO switches and Broadcom Tomahawk will begin small batch shipments. This is the validation period, and the market will focus on yield and reliability customer feedback. The key points are whether there is a delay and how the customer's feedback is 2) In 2027, Lumentum's CPO lasers will begin mass shipments. Core Check Shipping Guidelines 3) In 2028, lightcounting predicts a large-scale increase in CPO volume. Check if cloud service providers are releasing large-scale procurement CPOs in advance. Overall, Bernstein's clear AI data center bottleneck is gradually shifting from computing power to connectivity efficiency, and the implementation of CPO has its own pace. But the overall direction of upgrading the AI connectivity layer has not changed, and there is still a lot of room for expansion in the narrative of optical interconnection in the coming years. lite cohr mrvl nok aaoi axti euv sive