LightPath Technologies Inc (NASDAQ:LPTH) shares are under heavy pressure on Monday. Investors seem to be reacting to POET Technologies Inc (NASDAQ:POET) announcing that Celestial AI, now owned by Marvell Semiconductor, has canceled all of its purchase orders.
- LightPath Technologies stock is showing notable weakness. What’s weighing on LPTH shares?
Even though LightPath has no involvement in that partnership, the development seems to have rattled the optical components space and pulled LightPath sharply lower.
What Triggered The Sector Sell-Off?
POET shares collapsed after the company revealed that Marvell had voided every outstanding order tied to Celestial AI. The notice arrived on April 23 and immediately ended a relationship POET had been promoting since early 2023.
The explanation behind the cancellation made the situation even more alarming. Marvell accused POET of violating confidentiality rules by revealing sensitive information about orders and shipping activity.
POET is attempting to shift attention toward other initiatives, including a recently announced five million dollar order from a different technology partner. The company also highlighted ongoing development of its optical interposer platform for AI and hyperscale data centers.
Even so, management acknowledged that there is no guarantee it can repair its relationship with Marvell. Losing the Celestial AI business is a meaningful setback because it removes expected revenue and undermines confidence in POET's earlier customer wins.
Optical components stocks appear to be facing selling pressure alongside POET on Monday. LightPath is a provider of next-generation optics and imaging systems for defense and commercial applications.
LPTH Remains Above Key Levels
Lightpath is still trading in the upper half of its 52-week range ($1.98 to $16.53), which keeps the longer-term uptrend in focus despite Monday's sharp pullback. The stock is trading 3.7% above its 20-day simple moving average (SMA) and 18.6% above its 100-day SMA, a setup that suggests short-term trend support is being tested while the intermediate trend remains pointed higher.
The relative strength index (RSI), a momentum gauge, is 70.56, which is in overbought territory and often lines up with choppier pullbacks. RSI at 70.56 shows buyers have been in control recently, but it also raises the odds of profit-taking when the stock hits resistance.
On a longer lens, the stock is up 451.88% over the past 12 months, which is consistent with a powerful momentum cycle that can also produce fast drawdowns. The key question from here is whether the stock can stabilize above its shorter-term trend lines after failing to push cleanly through the $13.50 area.
- Key Support: $12.50 — a nearby area that may attract dip-buying if selling eases.
- Key Resistance: $13.50 — a level where rallies have recently stalled.
LPTH Shares Dive Monday
LPTH Price Action: LightPath shares were down 16.35% at $13.46 at the time of publication on Monday, according to Benzinga Pro.
Image: Vinnikava Viktoryia/Shutterstock.com
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