POET Technologies Loses $1.09 Billion in Market Cap After Marvell Cancels All Orders

POET Technologies shares plummet 48% after Marvell terminates all orders tied to Celestial AI, citing confidentiality breaches, wiping out $1.09B in market cap.

The optics and AI chipmaker saw its stock collapse by as much as 48.2% on Monday, April 27, 2026, after Marvell Semiconductor terminated all outstanding purchase orders tied to Celestial AI — a customer Marvell had recently acquired. The cancellation wiped out roughly $1.09 billion in market capitalization in a single session, sending shares to an intraday low of $7.65 from levels near $15.50.

Confidentiality Breach Allegations Spark the Selloff

Marvell, in a written notice dated April 23, 2026, accused POET of violating confidentiality obligations by publicly disclosing sensitive order and shipping information. The specific trigger appears to have been comments made by POET CFO Thomas Mika during the prior week's rally, when he allegedly confirmed order details while the stock was surging. Whether those statements actually constituted a contractual breach remains an open question — one that courts will likely need to resolve.

The timing could hardly have been worse. POET had originally announced the Celestial AI production orders back in April 2023, and the relationship had become the centerpiece of the company's growth narrative. That narrative had propelled the stock roughly 76% higher in the preceding week alone, fueled by intense retail interest on platforms like Reddit.

Legal Scrutiny Intensifies

On the same day as the crash, the law firm Block & Leviton announced a formal investigation into whether POET Technologies and certain executives violated US securities laws, particularly in connection with the company's recent disclosures before the cancellation. The investigation adds another layer of uncertainty to an already precarious situation.

Trading volumes on Monday reached 7.6 times the daily average, reflecting the panic selling that gripped the stock. By the close, shares had settled around $9 — still representing a decline of more than 40% from the prior week's highs.

Damage Control Falls Short

POET's management attempted to steady the ship by highlighting a separate $5 million order from another technology company and reiterating strong demand for optical components used in high-speed AI systems. But the math is unforgiving: a single $5 million contract offers little consolation against the loss of a strategic customer and an active securities investigation.

The company has not disclosed exactly how much revenue the canceled Marvell orders represented. For context, POET generated just $341,000 in revenue during the fourth quarter of 2025 while posting a net loss of $42.7 million — stark evidence of how heavily the company depends on a handful of large contracts.

What Comes Next

POET has acknowledged in its communications that there is no guarantee the business relationship with Marvell can be restored. The company has not indicated whether it plans to challenge the allegations or pursue legal action. The question of who actually breached confidentiality obligations remains unresolved.

Despite Monday's carnage, POET shares were still trading roughly 138% above their level at the start of 2026 before the selloff. How much of that gain survives will depend largely on whether the company can mount a credible defense against Marvell's claims — and whether its remaining customer base re-evaluates its own contractual relationships in light of the controversy. The coming weeks will be decisive.