POET Technologies Stock Crashes 47% After Marvell Cancels Orders Over Confidentiality Breach
On Monday, POET Technologies (NASDAQ: POET) saw one of the most dramatic one-day collapses in recent memory, as shares lost 47.35% to close
Quick overview
- POET Technologies experienced a dramatic 47.35% drop in stock price, closing at $7.95 after Marvell Technology canceled all purchase orders due to alleged confidentiality violations.
- The cancellation followed a brief surge in POET's stock after positive comments from its CFO regarding a potential contract with Celestial AI.
- With a history of unprofitability and low sales, the loss of the Marvell deal poses significant challenges for POET's financial future.
- Despite its innovative technology in optical networking for AI data centers, POET's recent turmoil highlights the volatility and risks associated with investing in the company.
On Monday, POET Technologies (NASDAQ: POET) saw one of the most dramatic one-day collapses in recent memory, as shares lost 47.35% to close at $7.95 — wiping out much of the gains the stock had seen over the past week, and sending shockwaves through the small-cap tech investing community.
The sell-off was precipitated by a bombshell statement that semiconductor giant Marvell Technology had canceled all purchase orders placed via Celestial AI, a business Marvell bought in February, citing violations of confidentiality commitments by POET.
POET-Marvell Deal Unraveled Fast
Only days before POET was riding high. Shares more than doubled last week when the company’s CFO Thomas Mika appeared in an interview with Stocktwits and appeared to confirm an increased contract with Celestial AI — meaning the agreement had risen above the $5 million number that had been previously, and more carefully, revealed. Investors rushed in on the possibility of a marquee client relationship with a Marvell-backed organization at a time when demand for optical networking technology in AI data centers was booming.
But the celebration didn’t last long. On April 23, 2026, Marvell gave written notice of cancellation of all purchase orders including those for initial production units first disclosed in a POET press release dated April 25, 2023. In its disclosure POET said Marvell had asserted POET violated confidentiality agreements by publicly releasing information concerning the purchase orders and shipment information. In other words, POET had a big mouth—and a big mouth cost POET plenty.
What’s at Stake for POET Technologies?
Given the company’s financial condition, the cancellation is especially hard for POET. POET has been unprofitable for two decades straight and Wall Street analysts don’t expect the company to turn a corner until 2028 at the earliest. The company’s total sales last year were just $1 million, so the now-canceled Celestial AI purchases might have been a potentially revolutionary cash stream.
Management tried to reassure investors, citing a separate purchase order from an unnamed technology business for over $5 million – five times last year’s entire revenue. But with the Marvell-related deal scrapped and the conditions surrounding its cancellation casting major doubts on POET’s judgment and business methods, investors were not in a forgiving mood. The volume was 199 million shares, or about fourteen times average daily volume.
POET Stock: A Speculative Play in a High-Stakes Market
POET’s core technology—using photonics, or light, rather of traditional copper cable, to move data between AI chips—remains really appealing. As AI data centers are built out, there’s been a great demand for faster, more efficient optical interconnects and POET has positioned itself right in that market.
But Monday’s crash highlights just how precarious the company’s situation still is. With a market cap of around $1.4 billion, a gross margin well into the negative and now a shattered relationship with one of the top players in the semiconductor industry, POET has an uphill road ahead to regain investor confidence.
The stock’s 52-week range of $3.78 to $15.50 speaks for itself: This is a name marked by volatility, speculation and high risk. Monday’s carnage is a warning, not an invitation for most investors.
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