East Money Information Securities: Multiple paths for copper interconnection are advancing, short to medium term cabinet cost advantage may bring survival space for copper connections.

East Money Information securities research report stated that at the NVIDIA Corporation (NVDA.US) GTC conference, the future direction of the company's storage calculation and networking products in the next two years was showcased. All interconnection paths are expected to benefit, and in the short to medium term, copper connection solutions can be accepted by end customers due to their cost and stability advantages. In the long term, optical connection solutions such as CPO/NPO will also maintain a gradual penetration trend. From a cost perspective, NVIDIA Corporation has retained short-distance copper connection versions in the Rubin Ultra and Feynman series, providing cloud manufacturers with choices from a cost perspective, and copper connections will still have a place until the Feynman generation at least. The cost-effectiveness advantage of copper connections makes them more advantageous in cost-sensitive scenarios such as inference. The main viewpoints of East Money Information securities are as follows: Cluster-level products impacting the trillion-dollar market, Feynman architecture retaining the "coexistence of optics and copper" On March 16th local time, the NVIDIA Corporation GTC 2026 conference was held in San Jose, California, USA. NVIDIA Corporation founder and CEO Jensen Huang anticipates that by 2027, the revenue opportunity for NVIDIA Corporation's AI chips (Blackwell and Rubin series) will reach at least $1 trillion. At the conference, the company launched the Vera Rubin POD-level AI platform, unveiled the next-generation chip architecture Feynman technology prototype, and the company's product roadmap clearly outlined the network ecosystem strategy of parallel paths for copper cables and CPO, requiring more copper cables, optical chips, and CPO production capacity. The coexistence of optics and copper is likely to continue East Money Information securities believes that system interconnection architecture will not rely on a single technological path but will deploy a combination of copper and optical connections based on multiple dimensions such as transmission distance, energy performance, cost-effectiveness, and delivery reliability. In short-distance interconnection scenarios, copper cables remain the core solution. NVIDIA will continue to promote the copper connection route, while optical interconnection technology will be applied to vertical expansion and horizontal expansion scenarios, with both capabilities being necessary components of its technological layout, and the Feyman series products will still be compatible with both connection methods. Continued attention to the application progress of CPO products NVIDIA Corporation's CPO Spectrum-X switch has entered full-scale production, manufactured by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. However, due to its highly integrated nature, CPO carries the risk of being tied to manufacturers. In addition, cloud manufacturers lack trust in early CPO manufacturing yield, maintenance/repair modes. The technological product strength of CPO is expected to mature gradually, and its scaled promotion will require validation and acceptance from CSP manufacturers. Mid-term and short-term cost advantages in cabinets may bring survival space for copper connections NVIDIA Corporation has retained short-distance copper connection versions in the Rubin Ultra and Feynman series, providing cloud manufacturers with choices from a cost perspective, and copper connections will still have a place until the Feynman generation at least. The cost-effectiveness advantage of copper connections makes them more advantageous in cost-sensitive scenarios such as inference. In high-speed scenarios, domestic and foreign manufacturers such as Credo and Huawei Guo Zhengyuan have successively launched 1.6TAEC/ACC products, whose performance can meet the needs of some high-speed scenarios. Targets It is recommended to continue to pay attention to data center optical communication companies such as Zhongji Innolight (300308.SZ), Eoptolink Technology Inc. (300502.SZ), Accelink Technologies (002281.SZ), Hgtech (000988.SZ), Suzhou TFC Optical Communication (300394.SZ), Henan Shijia Photons Technology (688313.SH), Advanced Fiber Resources (300620.SZ), Guangdong Jiayuan Technology (688388.SH), Xiamen UX IC (688807.SH), etc.; copper interconnection companies such as Zhejiang Zhaolong Interconnect Technology (300913.SZ), Suzhou Recodeal Interconnect System (688800.SH), etc.; and switch companies such as Ruijie Networks (301165.SZ), Shenzhen Phoenix Telecom Technology (301191.SZ), etc. Risk warning Risk of customer concentration and order fulfillment, technological iteration risk, overseas investment risk.