This Tiny AI Stock Is Suddenly Getting Massive Attention

"POET is one of the most divisive names in AI photonics, and real value could come from execution on the $500 million Lumilens partnership or the planned ramp of 800G optical engines in Q3 2026. If Malaysia volume manufacturing scales cleanly, the price target could prove far too conservative. Treat our price target as one datapoint. The full bull case appears below."

"POET is up 206.56% over the past month and 224.96% year to date, with a 43.15% single-day move on May 14 after the Lumilens announcement. The deal carries an initial $50 million purchase order and engineering samples targeted for late 2026. Q4 2025 revenue came in at $341,202, missing the $700,180 estimate, with full-year FY2025 revenue of just $1,074,865."

"Our 24/7 Wall St. price target for POET is $10.36 over the next 12 months, implying meaningful downside from the current $20.57 quote. The recommendation is sell with moderate confidence. POET has gone from obscure micro-cap to one of the loudest tickers on WallStreetBets in a matter of weeks, with the stock surged 114.72% in the past week alone after announcing a $500 million AI infrastructure deal with Lumilens."

"Bulls point to the 800G transceiver market projected to reach $9.8B by 2032 at 22.8% CAGR and the AI GPU server opportunity. CEO Suresh Venkatesan secured $225 million in Q4 2025 plus $150 million in January 2026, leaving roughly $430 million in cash. Management expects to ship more than 30,000 optical engines in 2026. Our model's bull scenario points to $22.89, an 11.28% re"

POET’s stock rose sharply after announcing a $500 million AI infrastructure deal with Lumilens, including a $50 million initial purchase order and engineering samples targeted for late 2026. The shares had major volatility, including large gains following the announcement and large drops after Marvell canceled Celestial AI purchase orders. Financial results showed Q4 2025 revenue of $341,202 versus a $700,180 estimate, with FY2025 revenue of $1,074,865. The price target is $10.36 for the next 12 months, with a sell recommendation. Potential upside depends on execution of the Lumilens partnership and scaling production for 800G optical engines planned for Q3 2026.

Read at 24/7 Wall St.