CITIC Securities: XPO will significantly expand the application scenarios of pluggable optical modules

Mars Finance News, CITIC Securities points out that AI computing power clusters are shifting from “simply stacking computing power” to “competition in network efficiency,” which will impose more comprehensive and stringent requirements on AI interconnection solutions.
XPO, a new generation pluggable optical module solution launched by Arista in partnership with over 60 companies, features 8x bandwidth, 4x front panel density, native liquid cooling, and full hot-swappable characteristics, successfully breaking the physical limits of traditional OSFP.
It also balances the performance advantages of CPO/NPO with the operational convenience of pluggability, providing a more practical upgrade path for AI multi-card scenarios such as Scale up/Scale out/Scale across.
CITIC Securities believes that XPO will significantly expand the application scenarios of pluggable optical modules, drive domestic optical module manufacturers to achieve smooth evolution in core technologies and upgrade to the next-generation optical interconnection, and initiate a new cycle of performance valuation growth.