The optics company has spun a compelling narrative of AI-driven photonics demand, but recent weeks have delivered a brutal reality check. POET Technologies secured a strategic supply agreement with Lumilens on May 14, 2026, worth an initial $50 million and with a potential cumulative value of more than $500 million over five years. Yet that news arrived in the middle of a storm that saw the stock crater after Marvell Semiconductor — via its Celestial AI unit — tore up all outstanding orders.
Marvell’s cancellation, dated April 23, came after it accused POET of violating a confidentiality agreement. The trigger was an April 21 interview in which CFO Thomas Mika discussed POET’s relationship with Celestial AI on Stocktwits. When asked whether he was under a non-disclosure agreement with a hyperscaler, Mika said he was bound by NDAs with “suppliers of hyperscalers,” not directly with Marvell. Marvell disagreed, stating in a letter that POET had disclosed order and delivery details “in breach of its confidentiality obligations.”
The market’s response was immediate and severe. On April 27, the stock plunged 47.3% in a single session, closing at $7.95. The 52-week range now stretches from $3.87 to $20.81 — a testament to the volatility that has gripped the shares.
A wave of class-action litigation has followed, filed under the Securities Exchange Act of 1934. Multiple law firms are targeting investors who bought POET shares between April 1 and April 27, 2026. The central allegations: the company misrepresented its status as a Passive Foreign Investment Company (PFIC), exposing US holders to adverse IRS tax treatment, and Mika’s public comments violated the very confidentiality agreement that Marvell cited. A short-seller report from Wolfpack Research on April 14 had already flagged the PFIC issue, sending the stock down more than 8% that day. Investors who wish to serve as lead plaintiff must file a motion by June 29, 2026.
Should investors sell immediately? Or is it worth buying POET Technologies?
The stock has been on a wild ride since the crash. It opened May at $6.97, then rallied to above $20 by mid-month. By May 26, it had retreated to $13.26 — more than 35% below that interim high — and further weakness followed. The sell-off has been exacerbated by a massive capital raise: POET placed approximately 19 million new shares, plus warrants exercisable at $26.15, at $21 per share in a registered direct offering worth $400 million. That infusion injects fresh cash, but it also dilutes existing holders significantly. With the stock trading well below the warrant strike price, the overhang of potential future dilution continues to weigh.
The financial fundamentals offer little comfort. For the first quarter, POET generated revenue of roughly $503,000 — triple the year-ago figure but still negligible for a company with a market capitalization in the billions. Earnings per share swung from a profit of $0.08 to a loss of $0.08. Operating cash flow was negative $8.8 million, and free cash flow negative $11.2 million. The return on equity sits at minus 95%, and the price-to-sales ratio exceeds 2,000.
Against this fragile backdrop, the Lumilens deal provides the only tangible growth signal. The partnership aims to develop a new class of photonic integrated circuits for AI infrastructure, leveraging POET’s electrical-optical interposer platform. The roadmap includes 800G and 1.6T transceivers, as well as near-package and co-packaged optics. Engineering samples are slated for the end of 2026, with volume production expected in 2027.
Yet the company itself outlined the unresolved risks in its April 27 filing: Can the relationship with Marvell be restored? Will new orders materialise? And can existing customer commitments be fulfilled without further cancellations? For now, the answers remain uncertain, and the June 29 legal deadline is fast approaching.
Ad
POET Technologies Stock: Buy or Sell?! New POET Technologies Analysis from May 27 delivers the answer:
The latest POET Technologies figures speak for themselves: Urgent action needed for POET Technologies investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 27.
POET Technologies: Buy or sell? Read more here...
