Jefferies reiterated its Buy rating on NVIDIA and raised the price target to $300 in a recent research note. However, the investment bank also pointed out that NVIDIA's AI server backplane PCB technology, Kyber, is highly likely to be delayed until 2028 or even canceled, creating significant ripples across the PCB supply chain.
The delay of Kyber, originally designed for high-end AI server backplanes, directly lowers the market size expectations for PCBs and copper-clad laminates (CCL) in 2027-2028. While midstream PCB manufacturers face near-term earnings pressure from postponed orders, the structural shift creates clear winners: upstream material suppliers—such as glass fiber fabric and CCL producers—as well as copper cable connector vendors, who gain stronger pricing power and market share amid technological upgrades and supply bottlenecks.
According to Jefferies, although the Kyber delay suppresses midstream players in the short term, it strengthens the structural advantages of upstream materials and copper cables, pushing the entire supply chain toward higher value-added segments—a trend likely to amplify the long-term value of upstream and copper-related companies.