GPU-HBM Packaging Welcomes New Fiber Interconnection Solution. "Optical-In Copper-Out" Accelerates, Optical Communication Sector Leads Gains in Early Trading.

Tradingkey - In early trading on the US stock market on May 26, optical communication concept stocks led the gains. As of press time, Amphenol ( APH) rose 7.04%, Viavi Solutions ( VIAV) rose 6.32%, Marvell Technology ( MRVL) rose 5.67%, Broadcom ( AVGO) rose 5.05%, Nokia ( NOK) rose 4.43%, Corning ( GLW) rose 2.63%.

Regarding market catalysts, as AI workloads continue to increase and the demand for memory capacity and bandwidth grows, the existing GPU-HBM architecture is approaching its limits.

According to media reports, a core researcher from a leading South Korean memory manufacturer revealed that global memory and advanced packaging companies are jointly exploring a breakthrough GPU-HBM heterogeneous integration solution: breaking the physical limitation in traditional 2.5D packaging where HBM must be placed adjacent to the GPU, by separately packaging the computing units and memory units, and then interconnecting them via high-speed fiber optic links.

Market analysis suggests that the fiber optic connection solution completely frees HBM from its proximity to the GPU, allowing it to be placed several centimeters or even further away, arranged in a ring around the GPU or concentrated in an independent memory area. This not only significantly increases the number of HBM stacks but also allows for separate cooling system designs for the GPU and HBM, solving the problem of thermal interference between the two.

If the new GPU-HBM fiber optic interconnect solution is successfully implemented, it will mark the formal expansion of optical interconnect technology beyond the traditional 'inter-rack to inter-server' application boundaries of data centers. This solution will drive technological upgrades across the entire industrial chain, accelerate the 'optical-in, copper-out' process, and extend the industry's boom cycle. Segments such as silicon photonics engines, specialty optical fibers, and optical connectors are expected to be the first to benefit.

Additionally, Marvell Technology, a leader in optical interconnects, is set to release its fiscal 2027 first-quarter results tomorrow after the market closes. Market expectations for this report are extremely optimistic: Wall Street expects Marvell Technology's first-quarter adjusted EPS to grow 21% year-over-year to $0.77, with revenue projected to increase 26% year-over-year to $2.4 billion.

Wall Street is generally bullish on Marvell Technology's optical interconnect business, which was a significant factor behind Nvidia's ( NVDA) $2 billion investment in the company at the end of March this year.

It is reported that copper interconnects can no longer meet the high-speed bandwidth and distance requirements of large-scale AI data centers, while the core hardware in optical devices consists of the series of optical DSPs and optical interconnect products in which Marvell Technology excels.