Mizuho AI reports that Mizuho Securities addresses market anxiety regarding the perceived delays in Co-packaged Optics (CPO) and 800VDC High-Voltage DC deployments. The firm maintains that the long-term trajectory for these AI server upgrades remains intact, though immediate alpha is concentrated in transitional beneficiaries rather than final-stage winners. CPO technology delivers critical reductions in power consumption and latency, while 800VDC enables single-rack power scaling from 60kW to over 600kW.

The analysis characterizes the current landscape as a 'phased gradient realization' rather than a stagnation. For the 2026-2027 period, strategic focus should remain on capturing dividends from NPO and +/-400VDC solutions. Mizuho highlights medium-to-long-term advantages for equities including LITE, AVGO, AAOI, and CRDO. As AI rack power density accelerates, the investment thesis relies on identifying the technological ladder rather than betting on a singular implementation timeline.