Nomura Global AI Trend Tracker: AI Expert Call #66 - AI Networking Market Updates
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Nomura hosted its 66th AI expert call on April 17, 2026, featuring a specialist from a leading high-speed copper cable company. The discussion centered on copper cable applications within AI data centers, hyperscaler supply chains, market sizing, and the competitive dynamics for Retimer and DSP chips.
The expert confirmed that NVIDIA's Rubin platform continues to use intra-rack DAC, consistent with GB300. Amazon AWS deploys AEC for its Trainium-based scale-up and first-tier scale-out connections. Google's TPU v7 utilizes 800G DAC, though the next-generation 1.6T TPU may require AEC or optical modules due to DAC length constraints. Meta relies primarily on optical modules, with limited AEC usage for GB300 rack scale-out.
The global high-speed copper cable market is projected to reach approximately $6.5 billion in 2026, with AEC accounting for 35%. By 2027, this market could expand to between $60 billion and $70 billion, with AEC's share rising to around 40%. Meta's 800G AEC demand alone could reach 3 million units in 2027, while xAI and Oracle combined may require 1.5 to 2 million units. Pricing is expected to remain stable, with 400G AEC units at $180-200 and 800G AEC units at $450-500.
In the DSP market, Marvell holds the largest share for 800G, while Broadcom has closed the gap at 1.6T. Together they command over 90% of the premium DSP segment. Smaller players like Maxlinear and Credo may capture opportunities among lower-tier transceiver clients.