Mizuho Securities Says CPO Technology Trends Unchanged; True Alpha in Transition-Period Beneficiaries

According to Mizuho Securities, on June 17, the firm's latest report on CPO (co-packaged optics) and 800VDC high-voltage direct-current technologies emphasized that while long-term trends remain intact, true alpha lies in transition-period beneficiaries rather than ultimate winners. Both technologies are critical for AI server upgrades over the next five years—CPO significantly reduces power consumption and latency, while 800VDC increases single-rack power from 60kW to over 600kW—but large-scale deployment requires time, and market concerns are overblown.

Mizuho highlighted that CPO and 800VDC represent "phased delivery" rather than delays. The firm recommended focusing on NPO and +/-400VDC transition opportunities in 2026-2027 before switching to final-generation technologies, as demand-side AI rack power density continues accelerating.