POET Technologies Shares Plunge 44% as Marvell Cancels Purchase Order

Summary

• Shares of POET Technologies plummeted more than 44% on Monday following the cancellation of purchase orders by Marvell from Celestial AI.
• The cancellation was attributed by Marvell to violations of confidentiality agreements.
• A breach claim was sparked after POET’s CFO disclosed specific order information during an interview.
• Prior to the news, the stock had climbed 76% over the previous week after the initial order announcement.
• POET noted that a $5 million purchase order with another technology firm remains active.

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(SeaPRwire) –   POET Technologies experienced a significant share price decline on Monday as Marvell Semiconductor terminated all purchase orders through its Celestial AI division.

POET Technologies Inc., POET

On April 23, Marvell provided formal notice of the termination, citing the unauthorized disclosure of confidential shipping and purchase order data.

The conflict arose when the Chief Financial Officer of POET discussed the Marvell contract in an interview, which Marvell claimed was a violation of their confidentiality agreement.

The revoked orders consisted of initial production units that were originally announced by POET in April 2023.

The impact was severe, occurring just after POET shares had jumped approximately 76% the week before, nearly reaching a 52-week peak of $15.50.

The stock underwent significant volatility last week, rising on the order news before dipping due to profit-taking and eventually closing the week higher on Friday.

However, Monday’s 44.37% crash wiped out most of those gains. Trading volume reached roughly 94 million shares, significantly higher than the three-month daily average of 10.52 million.

POET Highlights Ongoing Business

Despite the setback with Marvell, POET directed investor attention to its other operations, confirming a $5 million purchase order with a different technology partner.

The company stated it “remains dedicated to its strategic goals and the advancement of product development in the optical networking and AI sectors to satisfy growing demand.”

Even with the recent sell-off, POET’s stock is still up 27.8% for the year and has gained about 250% over the last 12 months.

Meanwhile, Wolfpack Research has taken a short position in the company, raising alarms regarding U.S. shareholder tax compliance. The short seller also characterized POET as a “stock promotion” and criticized its frequent shifts in business strategy.

Existing Collaborations

Other partnerships remain intact, including a recent agreement with Lessengers to create a 1.6T optical transceiver module for hyperscale data centers and AI clusters.

This project combines Lessengers’ Direct Optical Wiring with POET’s Optical Interposer technology.

Additionally, POET is working with LITEON Technology to develop optical communication modules for data centers and AI networks, integrating electronic and optical components via POET’s interposer platform.

Marvell’s own shares saw a 5.77% decrease on the same day.

POET maintains that it is focused on meeting delivery schedules for its other clients.