Deep|Optics: Addressing Optical Transceivers Oversupply Concern
Recently, we have been receiving an increasing number of investor questions on the potential overbuild in transceivers, which has partially weighed on the shares of US-listed optics names. In short, the argument is that there are around 90-100m 400G+ transceiver shipments this year, versus only around 14-15m XPUs, i.e., a ~6:1 attach rate, which is much higher than the attach rate implied by GPU and TPU network architectures. We believe the market has overlooked the details below:
