Jefferies highlights 1.6T transition ahead of OCP Summit

Investing.com - Jefferies outlined key focus areas ahead of the OCP Global Summit starting next week in San Jose, highlighting the 1.6T transition, scale-up protocol competition and the shift to 800V DC architecture. The firm identified Macom Technology Solutions (NASDAQ: MTSI) and Lumentum Holdings (NASDAQ: LITE) as favorite exposures to 1.6T, while noting Credo Technology Group's (NASDAQ: CRDO) ALC debut and OmniConnect appear underappreciated.

The firm said it will monitor competition between Ethernet, UALink and NVLink for scale-up connectivity, timing and component implications of NPO and CPO, expansion of memory architectures for inference, and timing around the 800V DC transition. Jefferies said early signals favor Broadcom (NASDAQ: AVGO) for DSP share at module makers and noted Nvidia's (NASDAQ: NVDA) participation in OCP as increasingly meaningful as the company moves toward a more open ecosystem with the NVLink Fusion platform.

For Nvidia, the firm said the October 12 keynote and technical sessions on 800 VDC, grid interconnection, liquid cooling and MGX should offer clarity on the opportunity for power semiconductors including Texas Instruments (NASDAQ: TXN), Analog Devices (NASDAQ: ADI) and ON Semiconductor (NASDAQ: ON). Jefferies said it expects to see 400V in the OCP Diablo 400 rack and assumes Nvidia will push power higher in Oberon/Taycann racks.

AMD (NASDAQ: AMD) CEO's October 12 opening keynote makes the company a central participant in the conference, with Helios shipments to customers including Microsoft scheduled to begin in late 2026. Jefferies said the investment debate should increasingly turn to deployment execution and noted Marvel Technology (NASDAQ: MRVL) announced a 100G/lane UAL switch that should tape out later this year.

For Credo, Jefferies said it expects management plans to demonstrate the microLED-based ALC at OCP for the first time, targeting reach of up to 30m. The firm said it will look for incremental data on ALC customers and additional information on the potential development of a micro-VCSEL-based roadmap, with microLED more likely for scale-out or scale-in and a potential micro-VCSEL solution for scale-up.

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