Here’s Why POET Technologies (POET) Has Declined Recently, Wall Street Continues to See Huge Upside

POET Technologies Inc. (NASDAQ:POET) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. POET Technologies Inc. (NASDAQ:POET) has declined roughly 29% over the past month. The major reason behind the significant price drop has been multiple lawsuits regarding the company’s tax status as well as the cancellation of purchase orders by Marvell associated with Celestial AI.

​Earlier in May, the stock was trading close to an all-time high of around $20. The Street expects more than 100% upside for the stock over the next 12-months. In the same month, the company reported a significant advancement by signing a supply agreement with Lumilens to jointly develop a new type of optical interconnect technology called the Electrical-Optical Interposer.

​Management noted that the aim of this partnership is to solve a growing bottleneck in AI infrastructure, which is the optical layer that connects GPUs at scale. POET highlighted that the current optical components are expensive and slow to manufacture because they rely on manual, precision assembly. The EOI platform eliminates this by using wafer-level processing, bringing semiconductor-style efficiency to photonics.

​Notably, as part of the deal, Lumilens has placed an initial $50 million purchase order with POET, with the potential to grow to over $500 million over five years. POET has also granted Lumilens warrants to purchase shares.

POET Technologies Inc. (NASDAQ:POET) develops high-speed optical engines, light sources, and photonic integrated circuits designed for artificial intelligence, hyperscale data center, and telecommunications applications. Founded in 1985 and headquartered in Toronto, Ontario, Canada, the company focuses on enabling faster and more energy-efficient optical connectivity solutions for the rapidly expanding AI infrastructure market.

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