Key Highlights
- Shares of POET Technologies climbed 108% over the week, reaching an 11-year peak of $15.50 during Friday’s trading
- A confirmed supply agreement with Marvell Technology for 800G optical engines drove the explosive rally
- CFO Thomas Mika disclosed that new orders are anticipated to elevate total 2025 bookings beyond $5 million, with shipments commencing in Q3
- By Friday’s close, shares retreated to $15.10 (+28.84%) as investors secured profits
- Market commentator Jim Cramer warned that the stock’s valuation reflects mass production expectations despite current limited production scale
Shares of POET Technologies reached a session high of $15.50 on Friday before settling at $15.10, representing a single-day increase of 28.84%. The weekly advance of 108% marks the company’s strongest price level since August 2014.
The dramatic movement followed confirmation of a supply partnership with Marvell Technology. In a statement posted on Stocktwits, CFO Thomas Mika revealed that POET had formally received orders from Marvell for its 800G optical engine products.
According to Mika, these orders are projected to drive POET’s aggregate 2025 order volume above the $5 million threshold. The company anticipates initial shipments will commence during the third quarter of this year.
Two additional prospective customers—Foxconn and Luxshare—are currently evaluating proposals. “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 its market capitalization currently valued at $2.31 billion.
Retracement Following Peak
The initial surge attracted momentum-focused traders, propelling the stock to its intraday peak. However, as profit-taking intensified, the advance quickly reversed course.
A short squeeze dynamic contributed to both the upward momentum and subsequent decline. Elevated trading activity—with average daily volume exceeding 13.7 million shares—magnified price volatility in both directions.
Company leadership also addressed a short-seller report released earlier in the week. Announcements regarding a potential U.S. redomiciliation temporarily boosted investor confidence, though the effect dissipated without additional developments.
Analyst price projections remained largely unchanged following Friday’s trading action. Technical indicators continue to signal a buy recommendation for the stock.
Cramer Issues Warning
Jim Cramer, veteran hedge fund manager and Mad Money host, advised investors to exercise restraint regarding POET.
“We need to maintain realistic expectations about these recent developments,” Cramer commented. “POET has secured a joint development arrangement. They’re not yet manufacturing these products at commercial volume.”
He continued: “The stock is being valued as if they’ve already achieved mass production capabilities, which concerns me. Just examine the financial data. POET’s current metrics suggest it resembles more of a research initiative than an established enterprise.”
Cramer highlighted the significant gap between laboratory-stage innovation and full-scale commercial manufacturing as the primary risk factor investors should carefully consider.
POET’s current confirmed status: orders from Marvell secured, awaiting determinations from Foxconn and Luxshare, with Q3 delivery timeline established.
