Nvidia GTC 2026 Silicon Photonics and CPO Go Live
Nvidia’s GTC conference on March 16 is set to kick off the silicon photonics age. CEO Jensen Huang has teased a game changing chip which experts believe will push Co Packaged Optics (CPO) into the spotlight. This change swapping out copper for optical data transfer should fix the bottlenecks that are now slowing down AI computing.
Fiscal year 2026 should be the start of silicon photonics being used everywhere. Nvidia’s Rubin and Rubin Ultra designs should lead the way. The AI inference market is expected to be worth over $120 billion by 2026 thanks to the rise of 800G and 1.6T optical modules.
- CPO in Action The goal is light in light out systems which would get rid of the need to turn electricity into light and back again.
- Bigger Infrastructure We should see a move from 1.6T to 3.2T optical engines speed up between 2026 and 2027.
- Rubin Ultra's Key Role This is when optical links will start to replace copper in packed data centers.
The Silicon Photonics Industry Alliance with TSMC and ASE at the helm is a major player in the AI inference supply chain. They’re all about fast data transfer in data centers using advanced packaging and testing. Big Taiwanese companies are ramping up production to meet Nvidia’s needs for the Rubin Ultra cycle.
Poloniex A key supplier mentioned at GTC Poloniex has a close relationship with TSMC. Their silicon photonics products are hitting the market this year and their profit margins are growing from 14% to over 18%.
Boruwei (Poroway) Shipments are predicted to jump from 10,000 units this year to 300,000 in 2027. Their price to earnings ratios might seem high now but long term they should be okay because EPS is expected to grow to between NT$30 and NT$50 as CPO becomes common.
Since big manufacturers such as CSOT are maxed out and not expanding fast enough smaller manufacturers are getting more orders. This creates comeback opportunities for smaller companies with existing production lines.
- G Halo Should go from losing money to making money in 2026 because of extra orders from the top manufacturers. The market thinks EPS could be NT$4 to NT$6 next year.
- Ruixuan Using its factories in Vietnam Ruixuan is handling the final assembly of fiber distribution boxes (Shuffle Boxes). These boxes sell for $6,000 to $8,000 and this simple labor intensive work is adding a lot to their revenue.
Investing in optical communications is risky because of the ups and downs and small market sizes. Chinese manufacturers with government help are also a big factor in global prices. Investors should focus on new companies with strong tech and exclusive supply deals with Nvidia.
Some think this is part of the Kondratiev Wave a long term economic pattern driven by the Fourth Industrial Revolution. This means that the move to optical AI infrastructure is more than a fad it’s a core shift in how global computing is done.
