POET Technologies plunged nearly 47% in a single session on April 27, collapsing to $7.95 from $15.10 the day before after Marvell Technology formally canceled all purchase orders it inherited when it bought Celestial AI in February.
How it unraveled
- The rally that set this up came just days earlier, when POET CFO Thomas Mika told Stocktwits TV that the company had a purchase order tied to Marvell (via Celestial AI), that the order exceeded the previously disclosed $5 million threshold, and that shipments could begin as early as next quarter. POET’s stock more than doubled on the comments.
- Mika’s on‑air description of POET’s role — supplying “high‑bandwidth, multi‑frequency, high‑power light sources” for Celestial AI’s photonic fabric —apparently crossed a line. Marvell viewed those public remarks as a breach of confidentiality and on April 23 sent a written notice canceling all Celestial AI purchase orders with POET, including production‑unit orders dating back to April 2023.
- Once the cancellation became public, POET’s share price cratered. In after‑hours trading the same day the stock slid another 9.4% to $7.20, signaling continued selling pressure.
What the companies said
- POET’s public response was brief and non‑specific: the company said it remains focused on executing strategic priorities and advancing product development in AI and optical networking.
- Marvell has not framed the move as anything beyond enforcement of confidentiality tied to the orders it acquired.
Market context and reactions
- Marvell’s stock barely blinked: it closed at $158.21 (down 3.71%) — a small hit relative to a name that is up roughly 76.6% year‑to‑date and trading near its 52‑week high. Marvell’s broader AI narrative — including recent reports it’s talking with Google on custom AI chips — remains intact.
- Retail traders on Stocktwits were split. Some suggested Marvell simply wanted to internalize optical revenue after acquiring Celestial, while others speculated POET’s comments were a pretext and predicted litigation.
- Analysts and commentators sounded alarms about POET’s commercial profile. Invezz, for example, said the cancellation returns POET to “speculative micro‑cap” status and warned the move could damage its reputation and remove a vital revenue pipeline.
The balance sheet problem
- POET’s financials make the fallout starker: the company reportedly lost nearly $63 million in 2025 on only $1 million of revenue — a gap that’s hard to cover without firm, recurring orders or fresh capital.
Why crypto traders should care
- For crypto‑native investors used to volatility, this is a reminder that micro‑cap tech names can swing wildly on single events — especially when business depends on a small number of large customers and NDAs. The episode underscores the importance of checking counterparty exposure, contract protections, and cash runway before “buying the dip.”
What to watch next
- Will Marvell reinstate any of the canceled orders, or will this become a legal dispute?
- Can POET replace the lost revenue pipeline or secure new customers quickly?
- How long is POET’s cash runway given current burn and the recent loss profile?
Bottom line: the sudden reversal turned last week’s bullish narrative into deep uncertainty. Until POET provides clarity on revenue, contracts or funding, the stock looks risky — potentially a fly‑for‑the‑pickup dip for risk‑tolerant speculators, but a clear warning sign for more conservative investors.
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