Data Center Structure Is Changing Due to the Spread of AI Inference | Son Jeong-woo, Tech Valley Insight CEO [Global Interview]

Watch on YouTube ↗  |  May 25, 2026 at 22:52  |  33:27  |  3PRO TV (삼프로TV)
Speakers
Son Jeong-woo — CEO

Summary

Son Jeong-woo discusses the structural shift from AI training to inference and the upcoming service era, and how this changes data center hardware demand. Memory prices are soaring but volume growth remains elusive, while Nvidia's expansion into CPU and networking creates new investment opportunities. Korean substrate suppliers and CPO adopters like Lumentum are positioned to benefit. Risks include data center construction delays and potential demand confirmation needed in late 2025.

  • AI inference era began in November 2024 with the MCP protocol, accelerating memory demand from late 2025.
  • Memory revenue grew 500% YoY in Q1 2025, but bit shipments rose only 5% QoQ, indicating price-driven growth.
  • Supply constraints will keep memory prices elevated through Q3 2025, but volume growth is not expected until 2026.
  • Nvidia reported strong earnings and is expected to rally when Vera Rubin ramps in late 2025; neo-cloud demand is an offsetting tailwind.
  • Nvidia's new rack architectures (GPU, CPU, LPU, networking, storage) point to expansion beyond just GPUs.
  • CPO (co-packaged optics) is a key networking technology, with Lumentum as Nvidia's exclusive supplier expecting revenue doubling.
  • Korean FCBGA substrate companies are structural beneficiaries of the rack expansion, though supply can increase.
  • AI data center construction delays pose a risk to upstream hardware demand.
Trade Ideas
Son Jeong-woo CEO 3:36
Memory structural demand; watch volume growth
Memory demand is structurally driven by the inference era, and despite near-term price-driven revenue growth, actual volume (bit growth) has been minimal. Supply constraints will keep prices elevated through Q3 2025, but volume growth is expected to materialize only in 2026 as new fabs ramp up. Investors should monitor 2H 2025 earnings for confirmation of real demand, especially as margins may peak and volume becomes the key driver. The supplier's market dynamic with hyperscalers entering long-term contracts supports a different cycle than past memory booms.
005930.KS 000660.KS MU MED
Son Jeong-woo CEO 16:01
Nvidia to rally on Vera Rubin
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.
NVDA HIGH
Son Jeong-woo CEO 24:01
Lumentum benefits from CPO adoption
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.
LITE MED
Son Jeong-woo CEO 26:27
Korean substrate companies benefit from expansion
Korean FCBGA substrate companies are structural beneficiaries of the data center architecture expansion because all new racks (GPU, CPU, networking, LPU) require advanced substrates. This cycle could last longer than the memory cycle, but investors should be aware that substrate supply can increase more easily than memory, so pricing power may eventually soften. For now, supplier-led pricing with long-term contracts indicates a sustained uptrend.
Korean FCBGA substrate companies MED
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This 3PRO TV (삼프로TV) video, published May 25, 2026, features Son Jeong-woo discussing 005930.KS, 000660.KS, MU, NVDA, LITE, Korean FCBGA substrate companies. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Son Jeong-woo  · Tickers: 005930.KS, 000660.KS, MU, NVDA, LITE, Korean FCBGA substrate companies