POET Technologies shares plunge after Marvell cancels purchase orders

Shares of POET Technologies Inc (TSX-V:PTK, NASDAQ:POET, FRA:RI4A) fell more than 46% on Monday morning after Marvell Technology Group Ltd. (NASDAQ:MRVL) cancelled all purchase orders tied to Celestial AI, citing alleged violations of confidentiality obligations.

Marvell provided written notice of the cancellation on April 23, telling POET that it had made disclosures of information related to the purchase orders and shipping details in contravention of its confidentiality obligations.

The cancelled orders included initial production units first disclosed in April 2023.

POET, which designs and manufactures optical engines and light sources for artificial intelligence networks, said it remains focused on executing its strategic priorities and advancing product development within the AI and optical networking markets.

The company said it is continuing to fulfil product deliveries for other customers, including a recently disclosed purchase order with an unnamed technology company valued at approximately $5 million.