Evercore finds strong AI networking demand in latest channel checks

Evercore’s latest channel checks show robust AI networking demand but continued supply constraints. The firm kept Outperform ratings on NVDA.OQ, MRVL.OQ, AVGO.OQ and MTSI.OQ, citing Nvidia’s NVLink/NVLink Fusion leadership, a roadmap to CPO adoption in 2027–28 and a target of 150,000–300,000 Spectrum CPO switches in 2027. Marvell should retain strong 800G DSP share (potentially >80%) and grow 1.6T share in 2027; AWS interest in 10 million 6.4T NPO chiplets in 2028 hinges on Celestial AI trials. Broadcom is seen as a frontrunner for scale-up CPO and may shift to microring optics, while Astera Labs is winning share with PCIe scale-up switches and aggressive optics investment. Market impact: supportive for networking and AI-infrastructure suppliers, reinforces NVDA’s ecosystem advantage, but supply constraints could limit near-term upside for suppliers.