Key Highlights
- POET Technologies shares plummeted more than 44% during Monday’s trading session following Marvell’s cancellation of all Celestial AI orders
- The cancellation stemmed from alleged violations of confidentiality agreements by POET’s management
- An interview conducted by POET’s Chief Financial Officer disclosed sensitive order information, prompting Marvell’s action
- Shares had climbed 76% in the previous week following initial disclosure of the Marvell relationship
- The company maintains it has a $5 million order from another technology partner
Shares of POET Technologies experienced a dramatic decline Monday following the termination of all purchase orders by Marvell Semiconductor through its Celestial AI division.
On April 23, Marvell delivered formal written notification terminating the orders. The semiconductor company claimed POET had improperly disclosed confidential information regarding purchase orders and shipment schedules.
The controversy began when POET’s Chief Financial Officer discussed details of the Marvell contract during a public interview. Marvell maintained this disclosure breached the confidentiality terms governing their business relationship.
Among the terminated orders were initial production volumes that POET had originally announced in April 2023.
The announcement came at a particularly painful moment. In the week preceding the cancellation news, POET shares had soared approximately 76%, approaching the 52-week peak of $15.50.
The previous week delivered significant volatility for shareholders. News of the original order drove prices upward. The following session saw profit-taking trigger a sharp selloff, though shares rebounded Friday to finish the week with gains.
Monday’s selloff wiped out most of those recent advances. The stock declined 44.37%, with trading volume reaching approximately 94 million shares—nearly nine times the three-month average daily volume of 10.52 million.
Company Highlights Remaining Business Opportunities
Notwithstanding the order cancellation, POET emphasized ongoing commercial relationships. Management confirmed an existing purchase order worth roughly $5 million from another technology sector client.
According to POET’s statement, the company “remains focused on executing its strategic priorities and advancing product development within the AI and optical networking markets to meet increasing demand.”
Despite Monday’s significant decline, POET shares maintained a year-to-date gain of 27.8% and continued trading approximately 250% higher than levels seen twelve months earlier.
Adding pressure, short-focused research firm Wolfpack Research revealed a short position in the stock. The firm raised questions about potential tax compliance matters affecting U.S. investors. Wolfpack also criticized what it characterized as repeated strategic shifts and labeled the company as primarily focused on “stock promotion.”
Strategic Partnerships Continue Forward
Several collaborative initiatives remain intact. POET recently unveiled a partnership with Lessengers targeting development of a 1.6T optical transceiver module designed for AI computing clusters and hyperscale data center infrastructure.
This collaboration combines POET’s Optical Interposer platform with Lessengers’ Direct Optical Wiring capabilities.
Additionally, POET has established an agreement with LITEON Technology for joint development of optical communication modules serving AI networks and data center applications. This partnership centers on integrating optical elements and electronic components utilizing POET’s interposer technology.
Marvell’s shares also declined during the session, falling 5.77%.
POET stated its commitment to fulfilling obligations to existing customers continues unchanged.
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