TechFlow news, according to Chaoxiang Research, Morgan Stanley's July 13 report pointed out that large-scale adoption of CPO in Scale-Up networks is expected in 2029 and beyond, with only limited introduction in 2028. Recent market concerns over CPO "delay" are excessive; the core reason is that CPO involves the rebuilding of the packaging, optical engine, and laser supply chain, and NVIDIA's Feynman generation is the time anchor for CPO deployment. Copper cables can last another two years relying on innovations such as PAM4 modulation, DSP, and retimers.
The core driving force is the evolution of AI cluster scale from 72 GPUs to 576 or even 1152. 2026 marks the start of the non-NVIDIA Scale-Up ecosystem, with AMD MI400, Amazon Trainium 3, and Microsoft Maia starting mass production; Astera Labs and Broadcom will be the initial major beneficiaries. Morgan Stanley maintains overweight ratings on NVIDIA, Broadcom, Astera Labs, and Keysight.
