Huang Renxun reiterated the copper technology route, and shares of optical device companies Lumentum (LITE.US) and Coherent (COHR.US) plummeted before the market opened.

In pre-market trading on Tuesday, stock prices of optical device companies Lumentum (LITE.US) and Coherent (COHR.US) fell. Prior to this, NVIDIA Corporation (NVDA.US) CEO Huang Renxun reiterated that their server racks will adopt copper technology. As of the time of writing, Lumentum dropped over 3% in pre-market trading, Coherent dropped nearly 4%, while active cable manufacturer Credo Technology (CRDO.US) rose against the trend by nearly 3%. In a two-and-a-half-hour GTC speech covering multiple topics, Huang Renxun stated that NVIDIA Corporation will simultaneously use copper technology and co-packaged optical technology in their upcoming Vera Rubin Ultra and Feynman product lines, with both technologies being developed in parallel. JPMorgan analyst Harlan Sur mentioned that NVIDIA Corporation's dual-track strategy aligns with his expectations, and noted that the market's anticipation of co-packaged optical technology is "ahead of the downstream industry's readiness." In his report to clients, 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 scale up to NVL576. The Spectrum-6 SPX co-packaged optical Ethernet switch has been fully launched in collaboration with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, with management claiming that its optical efficiency is 5 times higher and elasticity has increased by 10 times compared to traditional pluggable transceivers. For the Rubin Ultra (expected to launch in 2027), the Kyber rack architecture adopts a vertical computing tray, connected through central backplane and NVLink copper interconnect technology (supporting up to 144 GPUs), while also showcasing a CPO-based NVLink switch solution for rack-to-rack interconnectivity. Management stated that these two designs will continue to progress in parallel. For the Feynman (expected to launch in 2028), NVIDIA Corporation will clearly offer Kyber products with both copper and CPO interconnect scaling options, while also introducing Spectrum-7 (204T, CPO) for horizontal expansion."