Evercore’s latest industry channel checks show that scale-out demand for networking gear supporting artificial intelligence workloads remains robust, but constrained by available supply, according to a firm research note. Based on conversations across the channel, Evercore kept Outperform ratings on NASDAQ:NVDA, NASDAQ:MRVL, NASDAQ:AVGO and NASDAQ:MTSI.
Nvidia and NVLink
The checks singled out NVLink as the most proven fabric for scale-up use cases. Evercore noted NVLink Fusion as a mechanism to broaden that ecosystem toward custom ASIC integration. The research indicated Nvidia is projected to lead adoption of CPO - co-packaged optics - in the 2027-28 timeframe. On data-path topology, copper connections are expected to remain inside racks for the Rubin design, while CPO will be used for inter-rack connectivity; for Feynman, the company plans intra-rack CPO deployment. Nvidia is targeting 150,000 to 300,000 Spectrum CPO switches in 2027.
Marvell
Evercore’s checks suggest the NVLink Fusion collaboration could lessen Marvell’s emphasis on its UALink product. The firm expects Marvell to maintain a high share in 800G DSPs, potentially rising above 80% as Broadcom moves focus to 1.6T. Marvell’s share of 1.6T shipments is projected to increase in 2027 compared with 2026. A separate demand hinge noted by Evercore is AWS’s potential need for 10 million 6.4T NPO chiplets in 2028, which the note says depends on Celestial AI successfully demonstrating its switch and clearing field trial and reliability milestones.
Broadcom and CPO strategy
Broadcom is characterized in the checks as a frontrunner for scale-up CPO and as holding leadership in 1.6T DSP market share. Evercore reported that Broadcom may pivot its CPO approach away from MZM-based solutions toward microring-based architectures, aligning with Nvidia’s stated direction.
Astera Labs
Astera Labs is described as executing rapidly and providing a level of customer support that exceeds expectations for a younger, sub-scale supplier. The research note indicates the company’s PCIe scale-up switch should see expanding demand through 2027. UALink traction for Astera remains mixed, and the company is making aggressive investments in optics.
Macom and photodetectors
Evercore reported that Macom continues to hold a high share of the 200G/lane photodetector market, but faces intensifying competition from SiFotonics. The checks also highlighted potential headwinds from some 2.5D stacking challenges that could reduce Macom’s share in 1.6T TIA shipments.
The channel checks collectively paint a picture of persistent demand for AI networking hardware that is nonetheless being shaped and limited by supply-side constraints, vendor strategies on optics and DSPs, and product validation timelines.