Quick Summary
- Shares of POET Technologies plummeted more than 44% Monday following Marvell’s termination of all Celestial AI-related purchase orders
- The cancellation stemmed from alleged violations of confidentiality agreements
- An interview given by POET’s Chief Financial Officer disclosing order information prompted the breach allegation
- Shares had jumped 76% during the previous week following initial order announcement
- The company maintains it has another $5 million order with a different tech firm
Shares of POET Technologies experienced a dramatic selloff Monday following Marvell Semiconductor’s decision to terminate all outstanding purchase orders through Celestial AI.
On April 23, Marvell delivered formal written notification of the termination. The semiconductor company pointed to unauthorized disclosures of sensitive information concerning purchase orders and shipment schedules.
The situation unfolded after POET’s Chief Financial Officer discussed the Marvell contract during a public interview. Marvell contended this disclosure breached the confidentiality terms associated with their agreement.
The terminated contracts encompassed initial production volumes that POET had originally unveiled in April 2023.
The announcement’s timing proved particularly damaging. In the week preceding the cancellation news, POET shares had climbed approximately 76%, approaching their 52-week peak of $15.50.
The previous week witnessed significant volatility in the stock’s performance. The original order announcement drove prices upward, followed by a steep decline the following session as traders locked in gains, before rebounding Friday to finish the week with gains.
Monday’s selloff wiped out most of those advances. POET declined 44.37% during the session, with approximately 94 million shares changing hands—significantly above the three-month average daily volume of roughly 10.52 million shares.
Company Highlights Alternative Revenue Streams
Notwithstanding the cancellation, POET drew attention to ongoing business opportunities. The firm verified an existing purchase agreement worth roughly $5 million with another technology partner.
The company stated it “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 remained elevated by approximately 250% over the trailing twelve months.
Short selling firm Wolfpack Research has also targeted the stock. The organization revealed a short position and expressed concerns regarding possible tax compliance problems for American shareholders. Wolfpack additionally criticized POET’s history of business model changes and labeled the enterprise a “stock promotion.”
Existing Partnerships Remain Active
Not all developments have turned negative. POET recently unveiled a collaboration with Lessengers focused on creating a 1.6T optical transceiver module designed for AI infrastructure and hyperscale data center applications.
This joint effort combines POET’s Optical Interposer platform with Lessengers’ Direct Optical Wiring capabilities.
POET has additionally formed an alliance with LITEON Technology to jointly develop optical communication modules tailored for AI networks and data center environments. This partnership emphasizes merging optical elements and electronics utilizing POET’s interposer platform.
Marvell’s shares also experienced a decline, falling 5.77% during the same trading session.
POET indicated it remains committed to completing deliveries for its other clients.
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