New York, May 31, 2026, 07:46 EDT
- POET closed at $12.29 Friday, down 7.3% on the session and off about 15.8% from where it ended last Friday.
- U.S. markets stayed closed on Monday for Memorial Day. That gives Nasdaq-listed stocks just four sessions this week.
- This week the main question is whether the $400 million financing can address concerns about dilution, customer risk, and lawsuits from shareholders.
POET Technologies stock slipped this week. Traders watched a new $400 million cash injection, a big fall for May, lawsuits, and worries after losing orders tied to Marvell Technology’s Celestial AI deal.
Toronto’s optical-chip firm finished Friday at $12.29, down 7.3% on the day. The stock had ended last week at $14.59, making for a 16% slide over the week. The Nasdaq Composite rose 2.4% in that time.
POET is drawing interest as a fast AI optics story. The company makes products that use light for data movement, not just electricity, in AI data centers. Power and speed are big challenges in those setups.
POET Technologies wrapped a registered direct offering on May 18, pulling in $400.0 million in gross proceeds. It involved selling 19,047,620 common shares, plus a warrant for an equal number of shares at an exercise price of $26.25. The buyer took all securities.
POET CEO Suresh Venkatesan said the firm is ramping up wafer production and optical engine assembly capacity by about tenfold to prepare for more output through 2027. POET has more than 115 people globally and 20,000 square feet of assembly space in Malaysia, he said.
POET reported Q1 revenue of $503,389 and booked a net loss of $12.3 million before its new financing. CEO Venkatesan called Lumilens’s recent order for EOI-based optical engines, valued at $50 million, “an important commercial milestone.” POET said this order might bring in more than $500 million in sales in the next five years. POET Technologies
POET’s bullish case got another blow. On April 27, POET said Celestial AI called off all its purchase orders. Celestial AI got acquired by Marvell, and Marvell pointed to confidentiality breaches over order and shipping info. POET said it continues to fill orders for other customers, citing one about $5 million.
Lawsuits kept pressure on the stock this weekend. The Schall Law Firm on Friday put out a reminder about its class-action suit alleging U.S. securities law violations. Rosen Law told investors who bought from April 1 to 08:57 a.m. ET April 27 they have until June 29 to seek lead-plaintiff status.
POET’s past PFIC tag is still in play. PFIC is a U.S. tax term that can mean tough rules for Americans investing in some foreign firms. The company says it is looking to move its base and legal home to the U.S. to avoid PFIC problems going forward.
Short sellers are behind the moves. Dan David from Wolfpack Research told Business Insider his firm puts POET in the same bucket as companies that “don’t make money, make a lot of promises, raise a lot of money.” Both POET and Marvell declined to comment, according to the publication. Business Insider
Nvidia’s $2 billion bets on Lumentum and Coherent in March have put the focus on optics. Both are photonics suppliers in its AI supply chain. Small-cap POET is getting some fresh attention, despite low revenue.
New financing might not bring new orders right off. Customer ramps could slip, while concerns about Marvell could hold back sentiment. U.S. investors are still faced with litigation and tax questions. For POET, even with more cash, showing its optical engine plan can deliver regular sales is still the big hurdle.
Heading into the week, traders have a tough setup. Shares are well below the $21 financing line. The company has fresh cash for growth, but investors want to see what management delivers. The open on Monday will be the first check on sentiment.
