Sou Hu Cai Jing·2026-03-03 14:47Core Viewpoint - NVIDIA plans to invest $2 billion each in two publicly traded optical networking equipment suppliers, Lumentum Holdings Inc. and Coherent Corp, totaling $4 billion to secure a stable supply chain for critical laser components used in its data center switches utilizing Co-Packaged Optics (CPO) technology [2][4]. Group 1: Investment Details - NVIDIA's investment includes "multi-billion dollar procurement commitments and future rights to acquire" certain laser components from both companies [2]. - The investment aims to support research and development efforts and expand manufacturing capabilities in the U.S. for both Lumentum and Coherent [3]. Group 2: Technology Overview - Co-Packaged Optics (CPO) technology integrates pluggable transceivers directly into switches, eliminating the need for standalone devices, reducing hardware requirements, and lowering network power consumption [4]. - CPO switches utilize micro-laser emitters to convert data into optical signals for transmission via fiber optic cables, enhancing data transmission efficiency [3]. Group 3: Market Impact - The investment is expected to drive the development and adoption of CPO technology, positively impacting the optical networking equipment market [4]. - Following the announcement, shares of both Lumentum and Coherent rose by over 10%, indicating investor confidence in the future of CPO technology [3].