Why Poet Technologies Stock Soared 16.2% in October

Continuing its momentum after its modest increase of 3.4% in September, Poet Technologies (NASDAQ: POET) shares rose again last month thanks to continued market interest in artificial intelligence (AI) stocks. Investors celebrated the semiconductor company’s success in improving its liquidity as well as securing a notable production order for its optical engines.

According to data provided by S&P Global Market Intelligence, shares of Poet Technologies rose 16.2% in October while the S&P500 climbed 2.3%.

In early October, Poet Technologies announced that it had raised $75 million by issuing and selling 13,636,364 shares and one common stock warrant in a private placement. The equity financing transaction represented the largest investment in the company’s history.

Welcoming the investment, Dr. Suresh Venkatesan, CEO of the company, said:

“With a war chest of over $150 million in cash and no significant debt, we are now positioned to increase our own growth ambitions in the advanced AI hardware solutions market. This includes targeted investments and acquisitions to secure our technological lead and revenue generation opportunities in light sources for chip-to-chip connectivity, ultra-high-speed transceivers and related applications.

The day after the investment announcement, shares of Poet Technologies soared more than 17%.

Another catalyst contributing to the stock’s rise was the Oct. 22 announcement that the company had received a $5 million production order for a shipment of its Infinity optical engines. Poet said a leading systems integrator that will manufacture and sell optical transceiver modules has placed the order, which is expected to be shipped to the customer in the second half of 2026.

The Poet Infinity family of 400G optical engines can be configured in a daisy chain architecture to provide 800G, 1.6T and other customers.

It’s not just the usual AI suspects that are attracting investor interest. The market is also clearly focused on lesser-known names like Poet Technologies, as demonstrated by the stock’s rise over the past month. Characterizing itself as one of the few AI hardware companies in the world, Poet Technologies provides AI investors with concentrated exposure to AI.

While Poet stock soared in October, shares gave back their gains so far in November. As of this writing, in fact, Poet’s stock price is lower than its September 30 close. As disconcerting as it may seem, Poet reported nothing alarming. In the pre-revenue development phase, such volatility is to be expected. For investors looking for an investment in less familiar semiconductors, Poet remains an interesting consideration.

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Scott Levine has no position in any of the securities mentioned. The Motley Fool has no position in any of the securities mentioned. The Motley Fool has a disclosure policy.

Why Poet Technologies Shares Soared 16.2% in October, originally published by The Motley Fool