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POET Technologies (POET) shares crashed on Monday after Marvell (MRVL) canceled all purchase orders it had previously placed with the technology company.

POET’s chief of finance, Thomas Mika, recently mentioned Marvell as a key customer. However, Marvell has claimed that POET breached a strict non-disclosure agreement (NDA) in revealing details of the purchase order.

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Following today’s plunge, POET Technologies stock is down more than 45% versus its recent high.

The Marvell news is meaningfully bearish for POET shares, given it creates a “significant revenue gap” for the firm’s current fiscal year, as its CFO noted on an emergency call today.

In fact, it’s fair to argue that POET Technologies has been relegated to a speculative micro-cap name, still struggling to prove its commercial viability.

More importantly, the MRVL setback is a reputational disaster for the POET — one that may make other semiconductor companies wary of teaming up with it in the future.

And without a clear path to high-volume manufacturing with a major industry player, the fab-light model starts to look like a revenue-light reality for investors.

Investors are recommended to exercise caution in buying the dip in POET Technologies shares also because the company’s fundamentals, more broadly, remain concerning in 2026.

The Nasdaq-listed firm continues to struggle with a high cash burn rate and frequent equity dilutions that punish long-term holders.

Despite the hype surrounding 800G and 1.6T optical transceivers, its financials show negligible trailing revenue, leading to an alarmingly lofty valuation of more than 1,400x sales.

Even from a technical perspective, POET is trading just above its 20-day moving average (MA), with a decisive break below $7.80 expected to accelerate bearish momentum in the near term.

Amid a lack of significant commercial contracts, looming threat of another capital raise, and giants like Broadcom (AVGO) and Nvidia (NVDA) developing in-house silicon photonics solutions, Wall Street analysts also favor keeping on the sidelines in POET stock.

While the consensus rating on POET Technologies sits at a “Strong Buy,” the mean price target of $6.93 signals potential downside of another 13% from here.

And downward revisions, reinforcing bearish sentiment, may follow Marvell’s announcement on April 27 as well.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com