CPO Tech Is Heating Up—And These Chip Giants Are Poised to Win Big

What Is CPO and Why Is Wall Street Buzzing?

If you haven’t heard of Co-Packaged Optics (CPO) yet, don’t worry—you’re not alone. But if you’re into semiconductors, AI, or just like spotting the next big thing before it hits the mainstream, this is one acronym worth remembering.

CPO is a cutting-edge tech that integrates optical components directly with silicon chips on the same package. Why does that matter? Because it tackles three of the biggest headaches in next-gen computing: bandwidth bottlenecks, power consumption, and cost. And with AI workloads exploding, those headaches are turning into migraines.

JPMorgan: CPO Adoption May Be Faster Than Expected

According to analysts at JPMorgan, the adoption curve for CPO might be steeper than originally forecast. More suppliers are jumping in, and investment is ramping up across the board. While some investors worry that this could shake up the optical supply chain, JPMorgan believes the key players—like Broadcom, NVIDIA, and TSMC—are well-positioned to ride the wave rather than get wiped out by it.

In other words: the CPO revolution might not be disruptive—it might be lucrative.

AVGO Stock Split History

Speaking of Broadcom (NASDAQ: AVGO), the company recently made headlines not just for its tech, but for its stock.

On July 15, 2024, Broadcom executed a 10-for-1 stock split, bringing its share price down from over $1,700 to a more accessible $170 per share. The move was designed to make the stock more attractive to retail investors and employees, without changing the company’s overall market cap.

It’s a classic play for a company that’s confident in its long-term growth—and with CPO in its sights, that confidence might be well-placed.

Who Stands to Gain?

JPMorgan’s report highlights several companies likely to benefit from the rise of CPO:

Broadcom (AVGO) – Already a leader in networking and optical components.

NVIDIA (NVDA) – With its AI dominance, it needs faster, more efficient data movement.

TSMC (TSM) – As the world’s top chip foundry, it’s central to enabling CPO integration.

These aren’t speculative plays—they’re industry titans with the R&D muscle and supply chain clout to make CPO a reality.

Final Thoughts

CPO might sound like just another tech acronym, but it’s shaping up to be a foundational shift in how data moves inside the world’s most powerful machines. And with AI pushing the limits of current infrastructure, the timing couldn’t be better.

If you’re watching the semiconductor space, keep an eye on the companies doubling down on CPO. The next wave of growth might already be in the package.