What is the real focus of the debate over routes at the OFC Optical Communication Conference?

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The rapid expansion of AI computing infrastructure is fostering a technological strategy game that sweeps across the entire supply chain. At this year's GTC and OFC optical communication conferences, the trade-off between copper and optical solutions for data interconnect, the large-scale advancement of the 800VDC power architecture, and the in-depth restructuring of the network switch supply ecosystem have drawn the boundary for the next stage of AI data center hardware evolution.

During GTC, Jensen Huang clarified the interconnect technology roadmap: The Vera Rubin Ultra generation (2027) will offer both copper cable or copper cable + CPO (co-packaged optics) options, while the Feynman generation (2028) will fully switch to CPO; however, non-NVLink interconnects within racks are still expected to use copper cable solutions.

This is the clearest signal Nvidia has given so far regarding the commercialization of CPO, and it holds important guidance for the supply chain structure. According to a Morgan Stanley research report, despite the continued rise in CPO penetration, copper cable and optical solutions will coexist for a considerable period in the future, with both benefiting from overall market expansion.

What the exhibition revealed is not the victory of a single technology route, but the synchronous evolution across multiple dimensions: The data interconnect layer maintains importance for both copper and optics, the power architecture layer accelerates the rollout of 800VDC, and the network switch ecosystem sees silent expansion of white-box and ODM direct-supply models.

Copper and Optics: Coexistence, Not Replacement

In the field of data interconnect, the market focus over the past year has centered on whether CPO can replace copper cable. Jensen Huang’s remarks offer a clearer answer: replacement will happen, but gradually, and not a full substitution.

According to Nvidia’s plan, the NVLink scale-out network currently uses copper cable interconnect; in 2027, Vera Rubin Ultra will introduce a copper cable + CPO mixed solution, and in 2028, Feynman will fully transition to CPO. However, non-NVLink connections within racks—including LPX interfaces and storage interconnect—are still expected to use copper cable solutions.

Furthermore, Jensen Huang stated that as the overall market scale expands, both copper cable and optical interconnect will maintain growth trends.

Morgan Stanley believes that copper cable still offers better cost-performance within its supported distance, and active copper cable solutions like AEC (Active Electrical Cable) and ACC can leverage signal enhancement technology to further expand application boundaries. Therefore, the optimal strategy for suppliers is not to bet on a single technology, but to deploy both copper cable and optical solutions simultaneously.

Bizlink's booth at this year's OFC validates this logic. In addition to collaborating with Credo on AEC business, the company also showcased its FAU (Fiber Array Unit) coupling modules and Shuffle Box components. According to Morgan Stanley channel research, Bizlink may also be developing ALC (Active LED Cable) and optical module products with Credo, showing that it is actively extending into optical solutions.

800VDC: The High-Power Revolution of Power Architecture

If data interconnect is the overt theme of this exhibition, the accelerated push of the 800VDC direct current power architecture represents another understated yet far-reaching transformation.

During GTC, numerous suppliers including Delta, Eaton, Flex, Lead Wealth, Lite-on, Megmeet, and APC collectively showcased prototype products for 800VDC power racks, marking an unusually large participation. The core feature of this architecture is the separation of power racks from IT compute racks, to meet the ever-increasing power density demands of AI servers.

Morgan Stanley points out that this architectural shift will increase the per-unit value for Bizlink’s power wiring and busbar products, driven by shipment growth and ASP increases due to stricter spec requirements. For Chroma, the demand for test equipment related to AI power products will continue to grow with customer capacity expansion and device specification upgrades.

Network Switches: Ecological Openness, New Opportunities for ODM

A structural change is underway in the supply ecosystem for network switches. According to Morgan Stanley and discussions with several network switch supply chain companies, multiple vendors plan to develop network switch products based on Mellanox's Spectrum X ASIC, targeting shipment in the second half of 2026.

This means the market is gradually shifting from Nvidia’s previous integrated system sales model to an open ecosystem of white-box or vendor-branded switches. Morgan Stanley believes that this shift provides a positive catalyst for ODM vendors like Accton, opening up new direct-supply business opportunities for hyperscale cloud service providers.

Accton's product line at this year’s OFC is also noteworthy, covering 800G/1.6T optical modules, 102.4T CPO switches, and optical wavelength switches.

Morgan Stanley believes these products showcase Accton's comprehensive ability to supply switch solutions across different technology architectures—providing differentiated competitive value as the market shows increasing interest in CPO adoption and optical circuit switches.

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