Key Highlights
- POET Technologies shares climbed 108% over the course of the week, reaching $15.50 on Friday—the highest point since August 2014
- A confirmed supply agreement with Marvell Technology for 800G optical engines drove the rally
- CFO Thomas Mika indicated the company anticipates 2025 orders will exceed $5 million, with shipments beginning in the third quarter
- Shares closed Friday at $15.10, representing a single-day increase of 28.84%, following a wave of profit-taking
- Jim Cramer expressed concern that the stock valuation assumes production scale that has yet to materialize
POET Technologies shares reached $15.50 during Friday trading before settling at $15.10, marking a 28.84% daily advance. The weekly surge totaled 108%, representing the company’s strongest price level in more than a decade.
The primary driver behind this movement was confirmation of a supply arrangement with Marvell Technology. In comments shared on Stocktwits, CFO Thomas Mika revealed that POET had finalized orders from Marvell for its 800G optical engine products.
According to Mika, these orders are projected to bring the company’s total 2025 order volume beyond the $5 million threshold. The firm plans to commence deliveries during the third quarter of the current year.
POET Technologies is currently awaiting decisions from two additional prospective customers: Foxconn and Luxshare. Mika stated, “We expect to hear back from at least one of those.”
The company’s year-to-date performance now reflects a gain of 138.55%, while its market capitalization has climbed to $2.31 billion.
Reversal Following Peak
The morning surge attracted momentum-driven traders, contributing to the stock’s climb to its session high. However, selling pressure emerged as investors began locking in profits, leading to a sharp reversal.
Short covering activity intensified both the upward momentum and subsequent decline. Trading volume remained elevated—averaging more than 13.7 million shares daily—which magnified price movements in both directions.
Company leadership addressed a short-seller report that had circulated earlier in the week. Announcements regarding plans to redomicile to the United States temporarily boosted investor sentiment, though the positive reaction dissipated as additional catalysts failed to emerge.
Analyst price targets saw minimal adjustment following Friday’s trading session. Technical indicators for the stock continue to signal a buy rating.
Cramer Issues Warning
Jim Cramer, the former hedge fund manager who hosts Mad Money, recommended investors approach POET with careful consideration.
“Let’s not get ahead of ourselves with these recent announcements,” Cramer remarked. “POET’s got a joint development agreement. They’re not producing this stuff at scale.”
He continued: “The stock’s trading like they’re already in mass production, and that bothers me. Just look at the numbers. POET’s financials make it look more of a science project than a business.”
Cramer highlighted the distinction between laboratory-stage technology and commercial-scale production capacity as the primary risk factor investors should evaluate.
POET’s current standing: confirmed orders from Marvell secured, awaiting responses from Foxconn and Luxshare, with third-quarter delivery timeline established.
