POET Technologies Stock Crashes 50% After Marvell Cancels Celestial AI Orders
POET Technologies shares plunged nearly 50% after Marvell canceled all Celestial AI orders, citing confidentiality breaches over unauthorized order and shipping disclosures. The fallout removes POET from Marvell’s optical roadmap for Nvidia-powered AI clusters and follows a separate $5 million deal with another tech firm.
1. Marvell Order Cancellation Triggers 50% Sell-Off
On April 27, POET Technologies shares plunged nearly 50% after Marvell Technology formally canceled all purchase orders tied to its Celestial AI unit. The abrupt termination erased gains from last week’s surge fueled by expectations of POET’s role in high-speed optical interconnects for Nvidia-based AI infrastructure.
2. Confidentiality Breach Allegations
Marvell contends that POET violated confidentiality obligations by publicly disclosing purchase order and shipping details for Celestial AI units, including early production batches referenced in a 2023 announcement. This alleged breach prompted the immediate voiding of all outstanding orders.
3. Strategic Impact and Alternative Deal
The cancellation severs POET’s position on Marvell’s optical roadmap for data-center AI clusters, removing a key revenue opportunity. POET affirmed continued focus on its AI and optical networking products and highlighted a separate $5 million agreement with another technology firm.