Memory capacity is projected to grow only 20-30% annually for the next three years, while demand is doubling, leading to an expected 2-3x increase in prices on top of a prior 4x surge. Co-packaged optics (CPO) ramp is delayed to 2029 due to manufacturing and yield issues, extending the reliance on copper interconnects for several more GPU generations. Agentic workflows are driving increased CPU demand, but the CPU-to-GPU spending ratio remains heavily skewed towards GPUs.
Memory supply will remain critically tight for years, driving significant price increases and margin expansion for suppliers, while CPO delays extend the runway for copper networking solutions.