POET Stock Jumped on $500 Million Deal With Lumilens. Its Financials Have a Long Way to Go.

Announcing a deal is mostly viewed as a positive for a company. Yet, when Poet Technologies (POET) revealed that it had signed a $500 million deal with photonics-focused company, Lumilens, there must have been some in the market who believed that there could be a correction in the stock.

However, there was no repeat of the Marvell (MRVL) episode, and Poet shares ended yesterday's trading session up a whopping 43%. The partnership aims to combine Poet's expertise in developing wafer-level photonic integration platforms and Lumilens's optical chipsets and advanced manufacturing capabilities to build advanced optical engines for AI data centers.