POET Stock Forecast & Price Target

POET Technologies Inc. is poised for a robust financial future, supported by a strategic transition to manufacturing optical engines in Malaysia, which is expected to generate an annual revenue capacity of $50-100 million from 1 million 800G+ units. The company is also benefiting from favorable trends in the artificial intelligence sector, illustrated by estimates from leading suppliers like MRVL predicting significant revenue growth from optical connectivity, with expectations of doubling revenues by FY25. Additionally, with cash reserves of $42 million exiting Q3 and a recent capital raise of $40 million, POET is well-positioned to invest in working capital that will facilitate its progression toward profitability in CY26.

POET Technologies faces significant challenges due to its early stage in the highly competitive AI Optical Data Center connectivity market, where established players with greater resources dominate, creating a substantial headwind. Additionally, the company has low revenue expectations for the upcoming fiscal year, further elevating concerns regarding its market position and growth potential. The ongoing decline in Telecom revenue, coupled with heightened competition and market volatility, contributes to an overall negative outlook for the company's stock performance.