Mizuho Securities: The long-term trend of CPO remains unchanged, but the true alpha lies in the beneficiaries during the transition period, not just the ultimate winners.

BlockBeats News, June 17 — In its latest report, Mizuho Securities addressed the market’s concerns about delays in two major technologies: CPO (co-packaged optics) and 800VDC high-voltage direct current. The report believes the long-term trend of CPO technology will remain unchanged, but the real alpha lies with the beneficiaries during the transition period, rather than simply looking at the ultimate winners. Both CPO and 800VDC are key upgrade directions for AI servers over the next five years. The former can significantly reduce power consumption and latency, while the latter raises single-rack power from 60kW to 600kW+. However, large-scale rollout will take time, and market anxiety has been overestimated.

The report once again highlighted the medium- and long-term advantages of stocks such as LITE, AVGO, AAOI, CRDO, and others.

Overall, CPO and 800VDC are not “delayed,” but rather “phased and realized with progressive milestones.” In 2026-2027, the focus should be on capturing the NPO and +/-400VDC transition dividends, before switching to the endgame technology afterward. On the demand side, AI rack power density continues to accelerate. The key is to see the “ladder,” rather than going all-in on a single point in time.