Recently, I have been paying attention to the trends in some popular technology sectors and found that the CPO (Co-packaged Optical) niche has many interesting aspects worth exploring.

**Technical Perspective**

From an industry chain perspective, several related targets exhibit different technical characteristics: some are oscillating and accumulating in anticipation of a breakthrough, some have already doubled and are beginning to differentiate; there are also some that opened high but then retreated, a pattern often reflecting the market's re-pricing of previous gains. Experience shows that targets starting from the bottom and continuing to rise tend to have stronger resilience, while high-level exits often require timely profit-taking.

**Industry Outlook**

But what truly attracts attention is the development potential of CPO technology itself. As a core breakthrough for next-generation optical interconnects, this technology is accelerating from laboratory research to commercialization. According to market expectations, the compound annual growth rate (CAGR) for this sector from 2025 to 2030 could exceed 60%, which is quite impressive. The driving forces behind this are clear: firstly, the maturity of silicon photonics integration technology; secondly, the urgent demand from AI clusters for more efficient interconnects.

**Key Signals**

Recently, I saw that Lumentum plans to significantly increase the capacity of CPO ultra-high-power lasers in the second half of 2026. This move sends an interesting signal—that the global demand for CPO modules is more urgent than expected. From the perspective of chip capacity expansion, this usually indicates that downstream markets have already formed a certain level of demand certainty.

**Summary**

From a technological cycle perspective, the window for CPO from concept to industrialization is opening. The dual drive of silicon photonics and AI is expected to support long-term growth. Of course, the specific selection of targets should also be judged based on their fundamentals.