Shares of POET Technologies plunged nearly 50% on Monday after Marvell cancelled purchase orders, saying a public disclosure by POET’s chief financial officer breached confidentiality and voided a contract tied to AI data‑centre work. Marvell issued a formal notice on April 23, removing what investors had seen as POET’s clearest route into the AI data‑centre market and prompting a sharp re‑rating of the small‑cap.
What happened
POET Technologies, a developer of optical interposer components, saw its Nasdaq‑listed shares collapse after the company disclosed it had lost a contract connected to Celestial AI — a business acquired by Marvell Technology. The stock had traded as high as about $15 last week, after starting April nearer $5, before falling back toward the $8 area on Monday, a move approaching a near‑50% decline from recent highs.
The immediate trigger was a public interview in which POET’s chief financial officer named Marvell as a customer. Marvell said that disclosure breached terms of confidentiality and responded by cancelling outstanding purchase orders, notifying POET that the claimed disclosures constituted a breach of contract.
Market reaction and technical outlook
Traders and technical analysts reacted quickly. Volatility has been high for POET in 2026 — the stock swung from about $5 at the start of April to roughly $15, and then back down — and Monday’s event forced a rapid reassessment of the company’s valuation.
Some technical commentary flagged a key support level near $7.83; a clear break below that price would likely prompt further selling pressure. The immediate squeeze came as investors reassessed how close POET really was to generating meaningful revenue from large AI data‑centre customers.
Why Marvell pulled orders
Marvell’s cancellation centred on an alleged violation of non‑disclosure terms after the CFO named the buyer and discussed shipping details and order specifics in a public forum.
The buyer characterised the disclosures as material to contractual confidentiality and used that basis to terminate the purchase orders tied to the Celestial AI engagement.
Immediate effects on POET’s business profile
The cancellation severs a probable revenue pipeline that market participants had used to justify a premium valuation for POET. For a small cap with limited commercial scale, a tier‑one buyer’s endorsement is both a sales channel and a form of validation for the technology; losing that link reduces the firm’s visible path to scale.
That change affects multiple stakeholders. Retail and institutional holders who bought into the narrative of imminent AI data‑centre orders face a re‑rating. Short sellers and more cautious traders see the ruling as evidence that NDA enforcement matters in semiconductor supply chains and that disclosure missteps carry immediate commercial cost.
Responses from market commentators
Commentary swung to contrast POET with its customers. Some traders suggested reallocating risk away from POET toward larger suppliers perceived as more disciplined in contract enforcement. Others argued the market may have overinterpreted earlier signals about POET’s commercial traction — leaving the firm back in the speculative micro‑cap category without a confirmed tier‑one partner.
Analysts watching the AI hardware supply chain noted the episode underscores how quickly commercial ties can be disrupted by confidentiality breaches and contract enforcement.
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Marvell issued a formal notice cancelling POET’s purchase orders on April 23, citing an alleged breach of confidentiality.
This article was created with AI assistance.
