Citigroup's Atif Malik team released a research report stating that NPO (Near Package Optics) has replaced CPO (Co-Packaged Optics) as the preferred trading logic in the near term. Lightmatter management, a photonic interconnect startup, stated at the Citi Global TMT Conference that NPO is expected to enter the market in 2027 and achieve widespread adoption by 2028, while the timeframe for CPO scaling remains unchanged at 2028-2029. Management also pointed out that the core bottleneck currently restricting CPO scaling is testing capacity, not the technology itself, with the industry requiring approximately 100 times the existing capacity. Furthermore, management characterized lasers and optical fibers as "the next HBM," implying that a tight supply situation will support a scarcity premium for related assets.