The Curious Case of POET Technologies: Institutional Money Flows In as Lawsuits Mount

Despite shareholder lawsuits and a collapsed Marvell partnership, select institutions like Raymond James are buying POET stock. Key Q1 results due May 13.

There’s a strange disconnect playing out in the shares of POET Technologies. While the Canadian photonics specialist is fighting off a wave of shareholder lawsuits and nursing the wounds from a collapsed partnership, a handful of institutional investors have been quietly loading up.

On May 4, roughly 14.4 million shares changed hands — a volume spike that suggests professional money managers are taking positions. Raymond James Financial boosted its stake by 75%. Private Advisor Group LLC opened a new position worth approximately $2.7 million. Jump Financial and Counterpoint Mutual Funds also added to their holdings. Yet institutional ownership overall remains a mere 2%, indicating the buying is highly selective — likely a bet on a rebound after the stock’s brutal selloff.

That selloff was triggered by a single event. In late April, Marvell Semiconductor cancelled all outstanding orders from its Celestial AI subsidiary, accusing POET of breaching confidentiality agreements. The stock promptly halved in value, wiping out months of gains fueled by artificial intelligence hardware hype.

Now the legal fallout is accelerating. Multiple US law firms have filed class-action lawsuits against the company. The complaints center on two allegations: first, that POET misrepresented its status as a “Passive Foreign Investment Company” (PFIC) under US tax law — a classification that could carry significant tax consequences for American shareholders. Second, that CFO Thomas Mika violated a non-disclosure agreement during a public interview in late April, a breach that Marvell cited as the reason for terminating the Celestial AI relationship.

Investors who bought POET shares between April 1 and April 27, 2026 have until June 29, 2026 to register as lead plaintiffs. That deadline looms as a major overhang for the stock.

Despite the turmoil, the company isn’t running on fumes. After several capital raises, POET holds roughly $430 million in cash. Revenue last year climbed sharply on a percentage basis but reached just $1.07 million — against an operating loss of $42.1 million. Management points to a new production order worth $5 million from an undisclosed customer and says it plans to ship tens of thousands of optical engines this year.

The next major catalyst arrives on May 13, when POET reports first-quarter 2026 results after the market close, followed by an analyst conference call on the morning of May 14. Investors will be listening closely for two things: an update on that $5 million order, and any clarity on the legal disputes surrounding the PFIC status and the confidentiality breach.

The stock did stage a dramatic recovery on May 5, surging roughly 30% in Nasdaq trading on volume exceeding 60 million shares — with no apparent news to justify the move. Market observers chalked it up to speculation that new orders could be imminent.

Analysts remain largely bearish, with most assigning “Sell” ratings and price targets around $8 — offering little upside from current levels. POET continues to develop its 1.6T optical transceiver solutions and hybrid transmitter platforms, but a commercial breakthrough has yet to materialize.

The company is also pursuing a redomiciliation to the United States, a move that requires shareholder and regulatory approval. Until the June 29 class-action deadline passes, however, the legal drama will remain the dominant force driving the stock.