POET Technologies Inc (NASDAQ:POET) shares are trading lower in Tuesday's pre-market session after Marvell Semiconductor canceled all outstanding Celestial AI-related purchase orders, a move POET said it was notified of on April 23 and that now clouds near-term demand visibility.
The stock is also digesting Marvell's allegation of a confidentiality breach, as outlined in the cancellation notice that effectively ends a relationship first tied to initial production units disclosed in April 2023. Here’s what investors need to know.
- POET Technologies stock is taking a hit today. What’s weighing on POET shares?
Marvell Semiconductor Cancels All Outstanding POET Purchase Orders
Marvell Semiconductor canceled all outstanding purchase orders from Celestial AI (a company it recently acquired), and POET said the cancellation notice was received on April 23, effectively ending a partnership that included initial production units first disclosed by POET in April 2023.
Marvell also alleged POET breached confidentiality obligations by disclosing sensitive purchase-order and shipping details, while POET said there's no assurance it can re-establish the relationship.
POET is trying to redirect attention to other commercial traction, including a recently announced $5 million purchase order with a separate technology firm, but the market is treating the Marvell-linked cancellation as the dominant near-term driver.
POET Stock: Key Levels, Trends To Watch
POET is still holding a constructive longer-term structure inside its $3.78 to $15.50 52-week range, but the Marvell-related headline is testing how much of the recent uptrend was built on partner-driven expectations. The stock is trading 2% above its 20-day simple moving average (SMA) and 17.6% above its 100-day SMA, which indicates the trend is still upward even as sentiment cools.
The moving average convergence divergence (MACD), a trend/momentum measure, remains bullish with the MACD line above the signal line and a positive histogram, which leans toward buyers still having the edge on the intermediate trend. When MACD stays above its signal line, it typically means downside moves can be more "pullback" than "trend break" unless follow-through selling builds.
- Key Resistance: $8.50 — an area where rallies have recently struggled to push through.
- Key Support: $6.50 — a zone where buyers have tended to show up on dips.
What Does POET Technologies Do?
POET Technologies is a design and development company that builds high-speed optical engines, light source products and custom optical modules aimed at AI systems and hyperscale data centers. Its core technology is the patented POET Optical Interposer platform, which is designed to integrate electronic and photonic devices into a single chip using wafer-level semiconductor manufacturing techniques.
That focus makes partner relationships and early production ramps especially important, because purchase orders can act as proof points for adoption in AI networking and data-center buildouts.
The company operates across the United States, Canada, Singapore and China, so changes in a major customer/partner path can quickly reshape expectations around commercialization timing.
POET Stock Price Movement In Premarket Trading
POET Stock Price Activity: POET Technologies shares were down 2.77% at $7.73 during premarket trading on Tuesday, according to Benzinga Pro data.
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