These are exciting times for POET Technologies (NASDAQ:POET) investors. Shares have been on a tear, culminating in a 24% uptick in Wednesday’s session. And even after Thursday’s profit-taking pullback, the stock is still up ~190% over the past year.
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The latest rally has been fueled by speculation linking the company to Marvell and Nvidia’s hardware ecosystem, a connection that CFO Thomas Mika confirmed in an interview with Stocktwits.
Mika noted that POET had received a purchase order associated with Marvell and is still waiting on feedback regarding additional orders from manufacturing partners and customers, including Foxconn and Luxshare Precision.
The company focuses on designing and producing optical interposers, light sources, and high-speed optical engines that integrate electronic and photonic components onto a single chip. This technology is aimed at enhancing data transmission speeds, improving energy efficiency, and lowering costs across AI systems, data centers, and telecommunications.
POET also supplies its Starlight optical engines to Celestial AI, a company that Marvell acquired for $3.25 billion in February, positioning POET as an important supplier within a key part of Marvell’s AI portfolio.
These developments are no shocker to investor Dmytro Lebid, who thinks POET could be the “missing piece in Marvell’s AI empire.”
“These reports do not surprise me in the least, since I’m confident that POET’s technologies can be successfully and reliably integrated into Marvell’s ecosystem,” Lebid expounded on the matter. “Marvell’s custom chips require high-quality photonics, exactly what POET offers.”
In fact, considering the Celestial AI connection, Lebid believes this “diamond in the rough” could become a target acquisition for Marvell.
We’ll have to wait and see whether that becomes a reality. In the meantime, looking ahead, Lebid reckons POET’s market cap could surpass $5 billion by 2027.
How does he reach that figure, then?
Based on Nvidia’s 2026 roadmap, roughly 6 million Rubin GPUs using 1.5 transceivers each imply demand for about 9 million 1.6T ports, representing a ~$13.5 billion market; with optical engines accounting for ~25% of that value, POET’s addressable opportunity sits at about $375 per unit. If the company captures up to 10% share by 2027, that would translate into ~0.9 million units and roughly $337.5 million in revenue. Applying a peer median forward EV/sales multiple of 15.63x (based on Coherent and Lumentum) results in an implied valuation of about $5.3 billion, suggesting potential upside of roughly 235% from its current $1.57 billion market cap.
“I believe this is a realistic estimate looking ahead to the end of 2027, taking into account how highly volatile such assets are as they’re aimed at participating in the AI supercycle,” Lebid summed up. “From a long-term perspective, my opinion remains that the company is poised for commercial success.”
Bottom line, Lebid rates the stock a Buy. (To watch Lebid’s track record, click here)
It seems POET is flying under Wall Street’s radar right now, with no analysts currently covering this name. (See POET stock analysis)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.