Lumentum, Coherent say NVIDIA co-packaged optics deployments on track; Coherent sees H2 2026 revenue
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Lumentum and Coherent said during investor calls this week that co-packaged optics production remains on track, rebutting reports of multi-year delays. Coherent expects scale-out CPO revenue to begin in the second half of 2026, while Lumentum forecasts volume shipments in the second half of 2027 and first customer deployments in 2028. NVIDIA has invested $2 billion in each supplier.
Supplier Timelines
Coherent told investors this week that scale-out CPO revenue will begin in the second half of 2026, covering rack-to-rack links, with scale-up CPO revenue expected to follow in 2027. Lumentum said demand for ultra-high power CPO lasers is building and that several NPO engagements are underway, with volume shipments for scale-up starting in the second half of 2027 and first customer deployments expected in 2028. Both suppliers count NVIDIA as a major customer.
NVIDIA Investments
In March, NVIDIA announced a multi-year strategic partnership with Lumentum and a $2 billion investment to support research, capacity and a new US fab. NVIDIA also invested $2 billion in Coherent to develop optics technologies for next-generation data center architectures. Coherent broke ground on a Texas plant where it will build the world's first 6-inch indium phosphide fab for volume production, a facility focused on photonic interconnects.
Vera Rubin Architecture
NVIDIA's Vera Rubin NVL576 servers will connect eight NVLink racks of 72 Rubin Ultra GPUs into a single 576-GPU domain, requiring optical interconnects to carry signals beyond what traditional copper networking can support. Coherent's indium phosphide wafers are positioned as the underlying technology for chip-to-chip, server-to-server and data-center optical links. AMD is expected to turn to GlobalFoundries for co-packaged optics on next-generation AI servers using Instinct MI500 GPUs.
What's Next
NVIDIA and its suppliers are expected to detail volume commitments as scale-out CPO revenue begins in the second half of 2026. It remains unclear whether early deployment slips or AMD's GlobalFoundries approach could alter the competitive timeline.
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Lumentum, Coherent say NVIDIA co-packaged optics deployments on track; Coherent sees H2 2026 revenue
