Son Jeong-woo

Lumentum is the primary CPO (co-packaged optics) supplier for Nvidia, and CPO adoption begins with the Vera Rubin platform in 2025 and will accelerate in 2026. Lumentum expects its revenue to double over the next year. The broader networking architecture (Spectrum 6) requires CPO, and other hyperscalers and chipmakers (AMD) are likely to follow Nvidia's lead, making Lumentum a key beneficiary of the data center structure shift.

Nvidia's earnings were strong and the stock should rise once the market overcomes current skepticism regarding inference competition and GPU demand. Two key positive signals: (1) Nvidia's Data Center revenue growth exceeded hyperscaler CapEx growth, indicating additional demand from sovereign AI and neo-cloud customers; (2) bottlenecks are expanding from GPU to CPU, networking, and storage, which Nvidia is addressing with its Vera Rubin platform and new rack architectures. The neo-cloud shift actually benefits Nvidia because those providers rely almost entirely on Nvidia. Vera Rubin volume production starting late 2025 will catalyze the stock.

Memory stocks are rebounding because recent spot NAND prices and Korea export unit prices unexpectedly bounced, contrary to bearish forecasts. Additionally, NAND demand outlook was revised positively, driving gains in SanDisk and signaling a recovery in memory-related equities such as Samsung Electronics and SK Hynix. The market is gradually responding to positive data as it narrows uncertainty ahead of Q3 earnings.