The French Bank reiterated the value of copper wire interconnects, and is optimistic about the core positions of Astera Labs (ALAB.US) and Credo (CRDO.US).

Despite recent concerns in the market about the rise of Co-Packaged Optics (CPO) technology and its potential threat to traditional interconnect solutions, French bank BNP Paribas made it clear in its latest industry research report that the fear caused by technological iterations is exaggerated. In this technological context, the bank continues to be optimistic about Astera Labs (ALAB.US) and Credo Technology (CRDO.US) which hold core positions in this space. Analyst Karl Ackerman, after in-depth research at the DesignCon technology conference, pointed out that although CPO technology theoretically offers higher integration, traditional copper wire interconnect solutions still have a strong lifecycle at 224G/channel rates, with this technological advantage expected to extend further into the future 448G/channel evolution stage. During the critical window of the next three to four years, copper wire connections, with their exceptional cost-effectiveness, high reliability, and low power consumption in intrarack communication, will remain the top choice for data center architecture rather than quickly being replaced by optical solutions. Following his attendance at the DesignCon conference focusing on the semiconductor industry, Ackerman stated that even if 448G/channel copper cable interconnect technology becomes a reality, 224G/channel copper cable interconnect is expected to have a "longer application lifecycle" in the next three to four years. He further noted that technologies like Co-Packaged Optics I/O (co-packaged optics optical I/O) "may be more attractive at 448G/channel rates, especially in intrarack communication." As a leader in providing PCIe Retimers and CXL storage expansion solutions, Astera Labs is deeply embedded in the top AI infrastructure supply chain represented by NVIDIA Corporation (NVDA.US). Its crucial role in maintaining system signal integrity has positioned it as a core beneficiary in the AI construction boom. Despite market volatility due to the introduction of new protocols like UALink, analysts in the latest research report reaffirmed the long-term value of the company. Not only have they set a target price of $225 per share with optimistic expectations, but they also pointed out that with its strong technological moat, the company is fully capable of resisting disruptions caused by short-term changes in technological roadmaps. Meanwhile, the financial performance of Credo Technology provides solid data support for this bullish view. According to financial data, the company achieved explosive revenue growth of 272% year over year in the second quarter of the 2026 fiscal year. Its core product, Active Electrical Cables (AEC), has become the "de facto standard" for modern large-scale rack connections, with power consumption only half that of similar optical solutions, while reliability has increased by orders of magnitude. BNP Paribas emphasizes that as the demand for high energy-efficient connections continues to rise among large cloud service providers, Credo will continue to leverage its leading position in the AI server market with the AEC solution, turning this technological certainty into long-term performance growth.