Key Takeaways
- POET Technologies shares skyrocketed 108% over the week, reaching an 11-year peak of $15.50 during Friday trading
- A confirmed supply agreement with Marvell Technology for 800G optical engines sparked the dramatic rally
- Company CFO Thomas Mika revealed orders anticipated to drive 2025 order volume beyond $5 million, with shipments commencing in Q3
- Shares retreated to $15.10 (+28.84%) by Friday’s close as investors locked in gains
- Market commentator Jim Cramer warned investors the valuation reflects mass production expectations despite current limited output
POET Technologies shares climbed to an intraday peak of $15.50 on Friday before settling at $15.10, representing a single-day increase of 28.84%. The weekly advance of 108% marked the company’s strongest price level since August 2014.
The driving force behind the surge was confirmation of a supply partnership with Marvell Technology. During a Stocktwits discussion, CFO Thomas Mika disclosed that POET had formally received purchase orders from Marvell for its 800G optical engine products.
According to Mika, these contracts are projected to elevate POET’s complete 2025 order backlog above the $5 million threshold. Initial product deliveries are scheduled to commence during the third quarter of 2025.
POET is simultaneously awaiting decisions from two additional prospective customers: Foxconn and Luxshare. “We anticipate receiving confirmation from at least one of these parties,” Mika stated.
The company’s year-to-date performance now reflects a 138.55% gain, with market capitalization currently standing at $2.31 billion.
Afternoon Reversal
The morning surge attracted momentum-driven traders, contributing to the stock’s journey to its daily high. However, when profit-taking activity intensified, the price movement sharply reversed course.
Short-covering dynamics contributed additional volatility to both the upward trajectory and subsequent decline. Exceptional trading activity — with average daily volume exceeding 13.7 million shares — magnified price fluctuations in both directions.
Company leadership also addressed a short-seller critique released earlier in the week. Announcement of plans to redomicile in the United States temporarily boosted investor confidence, though momentum dissipated without subsequent developments.
Wall Street analysts have not substantially adjusted their price forecasts following Friday’s price action. Technical indicators continue to signal a buy recommendation for the stock.
Cramer’s Perspective
Jim Cramer, veteran hedge fund manager and Mad Money host, advised investors to exercise prudence regarding POET.
“We need to maintain realistic expectations about these recent developments,” Cramer commented. “POET has secured a joint development arrangement. They’re not manufacturing these products at commercial scale.”
He continued: “The stock is being valued as if they’ve already achieved mass production capacity, which concerns me. Just examine the financial data. POET’s balance sheet suggests this is closer to a research initiative than an established enterprise.”
Cramer emphasized the distinction between laboratory-stage innovation and industrial-scale production as the primary risk factor investors should carefully evaluate.
POET’s current confirmed status: purchase orders from Marvell secured, responses from Foxconn and Luxshare awaited, third-quarter delivery timeframe established.
