Emerging chip products seller POET Technologies (POET) had scored a contract with Marvell Technology (MRVL) Celestial AI (which it had acquired in February), which was expected to be a huge factor for the company’s upcoming revenue. However, Marvell accused POET of breaching confidentiality by disclosing details of these orders after acquiring Celestial, and subsequently canceled all related purchase orders.
POET saw its stock dip 47.4% intraday on April 27 after losing the contract. POET had reached a 52-week high of $15.50 on April 24, but is down 57.4% from that level amid this selloff. Against this backdrop, should you consider buying POET’s stock?
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About POET Technologies Stock
POET Technologies specializes in designing, manufacturing, and selling high-performance semiconductor products that merge electronic and photonic devices on its proprietary Optical Interposer platform. Headquartered in Toronto, Canada, the company transforms traditional chip packaging by using a novel wafer-level semiconductor manufacturing process.
This approach enables seamless integration of lasers, modulators, and detectors directly onto a silicon platform, bypassing costly, complex die-to-die assembly methods common in the industry.
What sets POET apart is its ability to create compact, high-speed multi-chip modules tailored for next-generation applications like AI data centers, telecom networks, and sensing systems. The company, currently finding its footing in the chip space, has a market capitalization of $1.06 billion.
POET’s stock has surged 62.16% over the past 52 weeks, amid explosive growth in AI infrastructure demand for advanced optical interconnects. Even though the MRVL deal was snatched away, it was a key business win while it lasted. But now year-to-date (YTD), POET’s shares have been up only 4.27%.
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The selloff has sent POET’s 14-day RSI from the overbought category to 45.60, below the moderately bullish level, indicating that momentum has somewhat stalled. The…
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