Shares of POET Technologies (POET) experienced a significant surge on Monday, climbing approximately 17% to $14.34 on the Nasdaq. The stock saw exceptionally high trading volume, with over 36 million shares changing hands by mid-afternoon. The move comes as multiple law firms issued reminders about the June 29 lead-plaintiff deadline in a securities class-action lawsuit related to the sharp selloff in April.
Key Developments Driving the Rally
The company's recent momentum is underpinned by several positive developments. In May, POET announced a $50 million purchase order from Lumilens as part of a supply and joint-development agreement for electrical-optical interposer engines. Additionally, the company secured $400 million in financing through a registered direct offering, selling shares and warrants to a single institutional investor. POET also reported a substantial increase in first-quarter revenue, which rose to $503,389 from $166,760 in the same period last year. However, the company reported a net loss of $12.3 million, or 8 cents per share.
Legal and Business Risks Remain
Despite the positive news, POET faces significant legal and operational risks. The securities lawsuit stems from the April selloff triggered by Marvell Semiconductor's cancellation of all orders from Celestial AI, a company it had recently acquired. According to POET, Marvell cited breaches of confidentiality rules related to disclosures about orders and shipping. The Schall Law Firm has set June 29 as the deadline for shareholders who purchased POET stock between April 1 and April 27 to seek lead-plaintiff status. The class has not yet been certified.
AI Data-Center Focus
POET is positioning its optical-interposer platform as a key technology for artificial intelligence data centers, where faster chip-to-server connections are becoming increasingly critical. The company's partnerships with LITEON, Lessengers, and Lumilens are central to its strategy. Lumilens CEO Ankur Singla highlighted that GPU interconnects are emerging as a defining bottleneck for AI scaling, underscoring the potential demand for POET's solutions.
Market Context and Competitor Moves
AI chip stocks showed mixed performance on Monday, with most names holding steady. Marvell Technology (MRVL), which was the counterparty in the canceled Celestial AI deal, gained approximately 9.0%. Lumentum (LITE) added 6.6%, while Coherent (COHR) edged down 0.4%. The VanEck Semiconductor ETF (SMH) rose 1.9%, reflecting overall sector strength.
Tax and Corporate Structure Changes
POET is also working to address tax concerns for U.S. investors. In April, CFO Thomas Mika stated that the company does not expect to qualify as a passive foreign investment company (PFIC) in 2026, which could trigger harsh tax bills. The board has expressed interest in moving the company's headquarters and legal domicile to the United States, pending regulatory and procedural approvals.
Outlook and Potential Pitfalls
While POET's stock has rallied on recent developments, the company's future depends on converting its development deals and orders into qualified products, achieving manufacturing scale, and generating sustainable revenue. Legal claims, potential dilution from warrants, or further customer issues could reignite governance concerns that weighed on shares in April. Additionally, fulfilling the Lumilens orders is contingent on successful module development, qualification, and manufacturing ramp-up.
