The Key Concept: Hybrid Architecture
AI data centers are moving toward:
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Electrical inside the server
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Optical outside the server
Even with co-packaged optics (CPO), you still need:
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Connectors
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Power distribution
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Mechanical interconnects
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High-density board connectors
That’s Amphenol’s domain.
Does CPO Threaten Amphenol Long Term?
It could reduce:
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Some external copper cable demand (DACs)
But it does not eliminate:
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Power connectors
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Backplane connectors
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Internal board connectivity
In fact:
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AI servers use more connectors than traditional servers
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Higher density = more interconnect complexity
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Power demands are exploding → more heavy-duty connector content
So paradoxically, AI may increase Amphenol content per rack.
Strategic Reality
This Nvidia partnership is about:
Solving bandwidth and energy efficiency between GPUs at hyperscale.
It is not about removing copper connectors from inside the hardware stack.
Copper and optics will coexist.
