Shares of POET Technologies collapsed 47% on April 27, falling to $7.95 from $15.10, after Marvell Technology canceled all purchase orders it inherited from its acquisition of Celestial AI. The cancellation followed public statements by POET’s CFO about the order’s value and timeline, which Marvell alleged breached confidentiality. The rapid reversal has left investors questioning the stock’s future, shifting analysis from bullish to deeply uncertain as the company faces significant reputational and financial challenges.
POET stock plummeted 47% in a single session following a major deal collapse. The sell-off was triggered after Marvell Technology sent written notice canceling all purchase orders from its recently acquired unit, Celestial AI.
The orders were all directed to POET Technologies. The partnership fell apart over allegations of a confidentiality breach by POET, just days after it was celebrated as a major win.
The incident began with an interview by POET CFO Thomas Mika on Stocktwits TV. He publicly confirmed the purchase order and suggested shipments could start next quarter.
Mika stated, “We’ve got a purchase order from them that we’re gonna ship against and we intend to continue that relationship and build it over time.” He detailed that POET supplies light sources for Celestial AI’s photonic fabric.
Marvell viewed these comments as a violation of the NDA tied to the order. The company formally canceled all related purchase orders on April 23, including initial orders dating to April 2023.
POET issued a statement the same day focusing on its strategic priorities. The company did not address the specifics of the alleged breach.
Meanwhile, Marvell’s stock dipped 3.71% to $158.21. This minor drop contrasts with its strong 76.6% year-to-date performance and ongoing AI chip development talks.
Some retail traders on Stocktwits questioned Marvell’s stated reason for canceling. One user speculated Marvell wanted to keep optical work in-house after acquiring its own company.
Another trader predicted legal action, writing, “Mika gave Marvell a lame, BS, manufactured excuse to back out of the contract and they took it.” The sentiment highlights deep skepticism about the cancellation’s justification.
Analysts now describe POET as a speculative micro-cap with unproven commercial scale. The cancellation removes a vital revenue pipeline and damages the firm’s reputation.
POET reported a net loss of nearly $63 million on just $1 million in revenue for 2025. The stock fell an additional 9.4% in after-hours trading, indicating ongoing selling pressure.
