AI Boom Extends CPO Order Visibility to 2028, Rosenblatt Says

Rising compute density and data traffic in AI servers are accelerating a shift from conventional pluggable optical modules toward co-packaged optics, or CPO, and more advanced laser components. Rosenblatt said the architectural upgrade should expand demand for high-speed optical connectivity, while long capacity-expansion cycles and demanding manufacturing requirements give established U.S. suppliers a defensible technological and production advantage.

Rosenblatt’s latest report said CPO demand is surging and order visibility now extends through 2028. U.S. optical-component makers with advanced laser technology and scaled manufacturing capacity are positioned to benefit, as the industry’s main constraint remains supply rather than customer demand. The report summary did not disclose the value of the orders, name the three U.S. suppliers, or provide more specific delivery dates.