NVIDIA is heavily investing in photonics: it has spent at least $6.5 billion in three months. - Moomoo

Since March this year, NVIDIA has committed at least $6.5 billion to multiple photonics companies, positioning itself as one of the most active strategic buyers in this emerging field. Photonics techn... Read original →

NVIDIA’s $6.5B photonics blitz in three months is a strategic bet to break the energy-bandwidth ceiling of AI scaling. This move forces upstream EUV and 3nm silicon photonics processes to mature faster while pushing data centers toward co-packaged optics (CPO). However, amid U.S.-China tech decoupling, reliance on non-Taiwan, China and non-Hong Kong, China supply chains inflates compliance costs and delays yield ramp. AMD and Celestial AI may pursue alternative heterogeneous integration paths, but won’t displace NVIDIA’s ecosystem dominance soon. Over the next 12–24 months, optical interconnects will shift from optional to essential—yet manufacturing yields and fragmented standards remain critical barriers. The first to master an IDM-like model will lock in pricing power ahead of the 2028 commercial inflection.