TLDR
- POET Technologies stock fell over 44% on Monday after Marvell canceled all purchase orders from Celestial AI
- Marvell cited breaches of confidentiality obligations as the reason for the cancellation
- POET’s CFO had revealed the order details in an interview, triggering the breach claim
- The stock had surged 76% in the prior week after the order was first disclosed
- POET says it still has a $5 million purchase order with a separate technology company
POET Technologies stock fell sharply on Monday after Marvell Semiconductor canceled all purchase orders placed through its Celestial AI unit.
Marvell issued written notice of the cancellation on April 23. It cited alleged disclosures of confidential information related to purchase orders and shipping details as the reason.
The trouble started when POET’s Chief Financial Officer mentioned the Marvell order in an interview. That disclosure, Marvell argued, violated confidentiality obligations tied to the deal.
The canceled orders included initial production units that POET had first announced back in April 2023.
The timing hit hard. POET stock had surged around 76% in the week before the cancellation news broke, trading close to its 52-week high of $15.50.
Last week saw wild swings for the stock. The initial order disclosure sent the price higher. It then dropped sharply the next day as investors took profits, before recovering on Friday to close the week in positive territory.
Monday’s drop erased much of that gain. POET fell 44.37% on the day, with around 94 million shares traded. That compares to an average daily volume of about 10.52 million over the past three months.
POET Reassures Investors on Other Deals
Despite the cancellation, POET pointed investors toward other active business. The company confirmed a purchase order valued at approximately $5 million with a separate technology company.
POET said it “remains focused on executing its strategic priorities and advancing product development within the AI and optical networking markets to meet increasing demand.”
Even after Monday’s steep drop, POET stock remained up 27.8% year-to-date and was still higher by around 250% over the past 12 months.
Short seller Wolfpack Research has also been circling the stock. The firm disclosed a short position and raised concerns about potential tax compliance issues for U.S. shareholders. Wolfpack also criticized POET for frequent business pivots and called the company a “stock promotion.”
Recent Partnerships Still in Place
Not everything has unraveled. POET recently announced a partnership with Lessengers to develop a 1.6T optical transceiver module aimed at AI clusters and hyperscale data center networks.
The collaboration uses POET’s Optical Interposer platform alongside Lessengers’ Direct Optical Wiring technology.
POET has also entered a deal with LITEON Technology to co-develop optical communication modules for AI networks and data centers. That partnership focuses on integrating optical components and electronics using POET’s interposer technology.
Marvell’s stock also fell on the day, dropping 5.77%.
POET said it continues to focus on fulfilling deliveries for its remaining customers.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
