Shares of POET Technologies Inc (NASDAQ:POET) are trading sharply lower Monday morning following news that Marvell Semiconductor has canceled all outstanding purchase orders from Celestial AI, a company Marvell recently acquired.
The cancellation notice, received on April 23, effectively terminates a partnership that included initial production units first disclosed by POET in April 2023. Here’s what investors need to know.
- POET Technologies shares are sliding. What’s weighing on POET shares?
Marvell Alleges Confidentiality Breach In POET Order Cancellation
The justification for the move is particularly concerning: Marvell alleged that POET breached confidentiality obligations by disclosing sensitive details regarding purchase orders and shipping information.
While POET management aims to pivot toward other strategic priorities, including a recently announced $5 million purchase order with a separate technology firm, the market remains skeptical.
POET emphasized its continued development of its patented POET Optical Interposer platform for AI networks and hyperscale data centers. However, the company acknowledged significant risks, noting there is no assurance it can re-establish its relationship with Marvell.
Investors are weighing this loss of a key partner against the company’s ability to meet its remaining revenue targets and satisfy existing obligations.
Critical Levels To Watch for POET Stock
POET is still trading near the upper end of its 52-week range ($3.78 to $15.50), which is consistent with a strong longer-term uptrend even after sharp pullbacks. The stock is trading 15.8% above its 20-day simple moving average (SMA) and 31.9% above its 100-day SMA, a setup that leans bullish on trend but can be prone to fast mean-reversion moves when sentiment flips.
The relative strength index (RSI), a momentum gauge, is 81.43, which is firmly overbought and often lines up with choppier trading. RSI at 81.43 means buyers have been in control, but it also raises the odds of profit-taking bursts.
- Key Resistance: $9.00 — a prior ceiling area where rallies have previously stalled.
- Key Support: $12.00 — a nearby “line in the sand” traders may watch after the premarket drop.
What Is POET Technologies and Its Business Model?
POET Technologies is focused on designing and developing high-speed optical engines, light source products, and custom optical modules aimed at AI systems and hyperscale data centers.
A core part of the story is its POET Optical Interposer, a patented platform designed to integrate electronic and photonic devices into a single chip using wafer-level semiconductor manufacturing techniques.
POET Technologies Earnings Preview For May 2026
Looking further out, the next major catalyst for the stock arrives with the May 13 (estimated) earnings report.
- EPS Estimate: Loss of 5 cents (Down from 8 cents YoY)
- Revenue Estimate: 35 cents million (Up from 17 cents million YoY)
POET Stock Price Activity During Premarket Trading
POET Stock Price Activity: POET Technologies shares were down 40.60% at $8.97 on Monday, according to Benzinga Pro data.
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