Jensen Huang Reaffirms Copper Technology Roadmap, Optical Device Stocks Lumentum(LITE.US) and Coherent(COHR.US) Both Fall in Pre-market Trading

K-LinePoet · 2026-03-17T13:21:04+00:00

Ahead of Tuesday's open, optical device companies Lumentum and Coherent saw stock declines after Nvidia CEO Jensen Huang reiterated that the company will adopt both copper technology and co-packaged optics simultaneously. Morgan Stanley analysts noted this strategy was in line with expectations and mentioned that market anticipation for co-packaged optics has already run ahead. Additionally, upcoming products Rubin Ultra and Feynman are expected to continue leveraging dual-approach scaling technology.

K-LinePoet

2026-03-17 13:21:04

Abstract generation in progress

On Tuesday pre-market trading, optical device companies Lumentum (LITE.US) and Coherent (COHR.US) saw their stock prices decline. Previously, NVIDIA (NVDA.US) CEO Jensen Huang reiterated that its server racks will use copper technology. As of press time, Lumentum was down over 3% pre-market, Coherent nearly 4%, while active cable manufacturer Credo Technology (CRDO.US) rose nearly 3% against the trend.

In a lengthy over two-and-a-half-hour GTC keynote covering multiple topics, Jensen Huang stated that NVIDIA will adopt both copper technology and co-packaged optical technology simultaneously in its upcoming Vera Rubin Ultra and Feynman product lines, with both approaches progressing in parallel.

JPMorgan analyst Harlan Sur said that NVIDIA’s dual-track strategy aligns with his expectations and noted that market anticipation for co-packaged optical technology “is ahead of the readiness of the downstream supply chain.”

In a client report, Sur wrote: "For the current Vera Rubin generation, the Oberon rack uses copper interconnect technology to scale to NVL72, while optical interconnect technology is used to extend to NVL576. Spectrum-6SPX co-packaged optical Ethernet switches are now in full production, developed jointly with TSMC, and management claims that its optical efficiency is five times that of traditional pluggable transceivers, with tenfold increased flexibility.

For Rubin Ultra (expected to launch in 2027), the Kyber rack architecture uses vertical compute trays connected via a central backplane and NVLink copper interconnects (supporting up to 144 GPUs). It also showcases a CPO-based NVLink switch solution for inter-rack connectivity.

Management stated that these two designs will continue to advance in parallel. For Feynman (expected in 2028), NVIDIA will clearly offer Kyber products with two scale-up options: copper interconnect and CPO interconnect, and will also introduce Spectrum-7 (204T, CPO) for lateral expansion.

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