POET Technologies Inc. (NASDAQ:POET) was among the stocks covered in Jim Cramer’s Mad Money recap as he urged investors to focus on the fundamentals of companies. Cramer mentioned that he likes the theme, as he commented:
While I like the story here so far, let’s not get ahead of ourselves with these recent announcements. POET’s got a joint development agreement. They’re not producing this stuff at scale. I’m calling it early. The stock’s trading like they’re already in mass production, and that bothers me. Just look at the numbers. POET’s financials make it look more of a science project than a business… With a company like this, the challenge is never just whether the technology works in a lab demo. You gotta figure out if it can be manufactured consistently and shipped at what we call scale…
So where do I come down? Look, I like the theme a lot. You know that. The scramble to secure lasers, transceivers, optical integration technology, it’s all, it’s happening. POET has a more interesting story than the average speculative small-cap tech name, but I’m not ready to recommend chasing here. If you want to play the theme, I’d still rather you own the more proven companies like Lumentum, like Coherent, both of which have NVIDIA’s endorsement and money. So the bottom line: While I can endorse speculating on POET Technologies, given how much the stock has run, it has a lot of potential, and it’s definitely worth watching. If you really like it, though, I’m begging you to wait for a pullback before you pull the trigger, as I don’t think you can consider yourself to be early to the story. And that’s sometimes what matters the most.
Stock market data. Photo by Alesia Kozik on Pexels
POET Technologies Inc. (NASDAQ:POET) manufactures semiconductor products using an optical interposer platform that integrates electronic and photonic devices onto a single chip. The company develops optical engines and circuits for several industries, including data centers, telecommunications, and AI applications.
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