POET Technologies Inc. (NASDAQ: POET ) is a Canadian microcap and semiconductor company. For most, that screams of being cyclical, with limited upside, but the stock has seen a rally this summer.I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.Analyst’s Disclosure:I/we have ...

Core Insights - The article highlights a critical shift in AI development where power supply has become the new bottleneck, surpassing chip availability as the limiting factor for growth [2] - Companies are focusing on building and optimizing infrastructure to support the energy demands of AI systems [2] Company Summaries Iren Ltd. - Iren Ltd. has transitioned from Bitcoin mining to high-performance computing, acquiring significant GPU fleets to support AI [5] - The company reported a 226% year-over-year revenue increase to $187 million in Q4 fiscal 2025, with improved gross margins from AI services [5] - Iren's diversification into both crypto mining and AI cloud services provides a cushion against market fluctuations, and its status as a Nvidia preferred partner ensures priority access to GPUs [6][7] Applied Digital - Applied Digital designs AI-optimized data centers, with its Polaris Forge campus planned to reach 1 gigawatt of capacity [8] - The company has secured a lease with CoreWeave, indicating demand for its facilities, but trades at a high valuation of approximately 34 times trailing sales [9] - The stock's valuation reflects both potential upside and risks associated with execution, including construction delays and cost overruns [10] Poet Technologies - Poet Technologies addresses the energy cost of data movement within data centers through its optical interposer platform, which uses light for communication [11] - The company has started generating modest revenue but continues to incur losses as it invests in R&D and manufacturing [12] - With a market cap under $500 million, the stock presents high-risk, high-reward potential, dependent on successful design wins [13] Investment Perspectives - For exposure to AI infrastructure, Iren is considered the most stable option due to its dual business model and existing capacity [14] - Applied Digital could yield high returns if it meets execution targets, but its current premium valuation poses risks [14] - Poet Technologies is viewed as a speculative investment with significant execution risks until it achieves revenue scale [14][15]

Core Insights - POET Technologies Inc. has received an initial purchase order exceeding US$500,000 for optical engines from a key customer, marking a significant step towards volume production [2][3] - The company will showcase its technology at the 2025 ECOC Exhibition in Copenhagen, where it is nominated for an award for its innovative optical integration platform [1][2] - Production of the ordered optical engines is expected to begin shipping in early 2026, with plans for increased production volumes throughout the year [3] Company Overview - POET Technologies specializes in high-speed optical modules and engines for artificial intelligence systems and hyperscale data centers, utilizing its patented POET Optical Interposer™ technology [4] - The company is headquartered in Toronto, Canada, with operations in Shenzhen, China, Singapore, and Malaysia, focusing on advanced semiconductor manufacturing techniques [4] Upcoming Events - The company will participate in three industry events during the ECOC Exhibition, featuring discussions on co-packaged optics and product presentations related to its optical engines [6]

Core Insights - POET Technologies Inc. is recognized as a promising AI stock following its partnership with NTT Innovative Devices Corporation to develop advanced optical engines for mobile networks [1][3] - The collaboration aims to enhance mobile front-haul networks with a 100G Bidirectional Optical Engine, which is projected to deliver four times the bandwidth efficiency compared to existing devices [2][3] - The market for front-haul mobile networks is anticipated to grow at a CAGR of 14.2% through 2032, reaching a market size of $5.9 billion [3] Company Overview - POET Technologies designs, develops, manufactures, and sells semiconductor products and services across the US, Canada, Singapore, and China [4]

Core Viewpoint - POET Technologies Inc. is showcasing its latest optical products at the 2025 China International Optoelectronic Expo (CIOE), emphasizing its innovations in optical engines and light sources for AI networks [1][2][4]. Group 1: Product Demonstrations - At CIOE 2025, POET will present two breakthrough demonstrations aimed at AI scale-up networks and hyperscale data centers [2]. - The company will feature its Optical Interposer™ technology, which is designed to meet the increasing demands for AI and cloud-scale connectivity [2][4]. Group 2: Executive Participation - Dr. Mo Jinyu, Senior Vice President of Global Product Development, will speak at the International Forum on Optical Communications (IFOC 2025), discussing the advanced capabilities of POET's technology [2]. - The senior executive team will engage in numerous meetings with customers and partners during the expo, indicating strong global interest in POET's offerings [3]. Group 3: Market Context - CIOE is recognized as the largest optoelectronics conference globally, expecting over 120,000 attendees from more than 30 countries, which highlights the significance of POET's participation [4]. - The company aims to provide cost-effective, high-bandwidth solutions that can scale with the demands of AI systems and networks [4]. Group 4: Company Overview - POET Technologies specializes in high-speed optical modules, optical engines, and light source products tailored for AI systems and hyperscale data centers [6]. - The POET Optical Interposer™ platform allows for the integration of electronic and photonic devices into a single chip, offering advantages in cost, power consumption, and scalability [6]. - The company has developed high-speed optical engines and modules for AI clusters, addressing bandwidth and latency challenges in AI systems [6][7].

Core Viewpoint - POET Technologies Inc. has partnered with NTT Innovative Devices Corporation to develop advanced optical engines aimed at enhancing mobile networks for artificial intelligence applications, marking a significant step in the telecom industry [1][3]. Company Overview - POET Technologies specializes in designing and implementing optical engines and light sources for AI networks, utilizing its proprietary Optical Interposer™ platform [5]. - The company is headquartered in Toronto, Canada, with operations in Singapore, Shenzhen, China, and Malaysia [5]. Partnership Details - The collaboration focuses on developing a 100G Bidirectional Optical Engine for next-generation mobile front-haul networks, which is expected to provide four times more bandwidth efficiency than current devices [2][3]. - The partnership aims to create integrated and cost-effective solutions that will accelerate the deployment of advanced mobile infrastructure [3]. Market Potential - The front-haul segment of networking is crucial for AI applications requiring high bandwidth and low latency, projected to grow at a CAGR of 14.2% through 2032, reaching a market size of US$5.9 billion [3]. - The market for bidirectional transceivers was valued at US$1.2 billion in 2024 and is estimated to reach US$2.5 billion by 2033 [3]. Development Timeline - POET will commence development work in 2025, with prototypes expected to be ready in 2026 and high-volume production anticipated for 2027 [4].

Core Viewpoint - POET Technologies Inc. will proceed with the voluntary delisting of its common shares from the TSX Venture Exchange, while maintaining its listing on the Nasdaq Capital Market under the symbol "POET" [1][2][3] Group 1: Delisting Details - The delisting from the TSX Venture Exchange is expected to be effective as of the close of trading on or about August 27, 2025 [2] - The company has received the necessary approval for the delisting and believes this will centralize trading on Nasdaq, improving long-term liquidity and enhancing shareholder value [2][3] Group 2: Trading and Accessibility - Following the delisting, shareholders can trade their shares through brokers on Nasdaq, ensuring continued accessibility [4] - Shareholders with POET shares in Canadian brokerage accounts are advised to contact their brokers for trading instructions on Nasdaq [4] Group 3: Company Overview - POET Technologies specializes in high-speed optical modules, optical engines, and light source products for artificial intelligence systems and hyperscale data centers [5] - The company's products utilize the POET Optical Interposer™, which integrates electronic and photonic devices into a single chip, offering lower costs, reduced power consumption, and scalability [5] - POET's solutions address challenges in 5G networks, machine-to-machine communication, edge computing, and sensing applications like LIDAR for autonomous vehicles [5]

Company Overview - POET Technologies Inc. is a Canadian company specializing in the production of optical chips and engines that utilize light for data transmission, targeting applications in AI systems and large server farms [1]. Market Focus - The company primarily focuses on small- to mid-cap companies, which are often overlooked by investors, while occasionally analyzing large-cap companies to provide a comprehensive view of the equity markets [1].

Group 1 - POET Technologies Inc. is expected to generate its first meaningful revenue this year, indicating a positive outlook for the company [1] - The company's shares have shown bullish trends since the last coverage, reflecting growing investor interest [1] - The analysis is based on thorough research and experience in financial markets, focusing on identifying undervalued companies [1]

Revenue Performance - Revenue for Q2 2025 was $268,469, compared to $0 in Q2 2024, and $435,229 for the first half of 2025, up from $8,710 in the same period last year[4]. - The company recognized $435,229 in revenue from non-recurring engineering services and product sales during the six months ended June 30, 2025, compared to $8,710 in 2024, indicating a significant increase[51]. - The company reported revenue of $435,229 for the six months ended June 30, 2025, with significant selling, marketing, and administration expenses totaling $10,462,255[102]. Operating Expenses - Operating expenses for Q2 2025 totaled $9,025,545, an increase of 33.5% from $6,757,186 in Q2 2024, with total operating expenses for the first half of 2025 at $18,728,714, up from $11,885,055 in 2024[4]. - Selling, marketing, and administration costs for the six months ended June 30, 2025, were $10,462,255, compared to $6,946,241 in 2024, reflecting a 50.5% increase[109]. - Research and development costs for the three months ended June 30, 2025, totaled $3,752,352, an increase from $2,648,498 in the same period of 2024, representing a 41.6% increase[109]. Net Loss and Financial Strain - Net loss for Q2 2025 was $17,263,375, compared to a loss of $7,979,869 in Q2 2024, and the total net loss for the first half of 2025 was $10,921,817, down from $13,696,047 in 2024[4]. - The company reported a comprehensive loss of $15,498,048 for Q2 2025, compared to $8,013,213 in Q2 2024, indicating increased financial strain[5]. - For the three months ended June 30, 2025, the net loss was $17,263,375, compared to a net loss of $7,979,869 for the same period in 2024, representing a 116% increase in losses year-over-year[94]. Cash Flow and Investments - Cash and cash equivalents decreased to $12,364,960 as of June 30, 2025, from $37,143,759 at the end of 2024, reflecting a significant cash outflow[7]. - Short-term investments increased to $60,688,044 as of June 30, 2025, compared to $16,672,811 at the end of 2024, indicating a strategic shift in asset allocation[3]. - The company incurred $41,578,598 in cash used for the purchase of short-term investments during the first half of 2025, indicating aggressive investment strategies[7]. Shareholder Equity and Capital Structure - Share capital rose to $243,889,697 as of June 30, 2025, from $223,742,335 at the end of 2024, reflecting new equity financing activities[6]. - The total shareholders' equity increased to $49,365,406 as of June 30, 2025, from $20,688,887 at the end of 2024, suggesting improved capital structure[6]. - The Company reported cash and cash equivalents and short-term investments of $73,053,004 and shareholders' equity of $331,622,663 as of June 30, 2025[107]. Financial Instruments and Valuation - The company reported a fair value adjustment to derivative warrant liability of $(7,559,991) in Q2 2025, compared to $(1,376,761) in Q2 2024, reflecting volatility in financial instruments[4]. - The fair value of the derivative warrant liability was $29,328,610 as of June 30, 2025[104]. - The estimated fair value assigned to the warrants issued on private placements was $8,127,620 as of December 3, 2024[78]. Compliance and Accounting Practices - The financial statements are prepared in accordance with IFRS, ensuring compliance with international accounting standards, which enhances the reliability of financial reporting[10]. - The company recognizes revenue when control over a product or service is transferred to a customer, aligning with standard revenue recognition practices[37]. - The company follows the liability method for accounting income taxes, which allows for deferred tax assets to be recognized only if expected to be realized in the future[36]. Equity Financing and Share Issuance - The total number of common shares issued increased from 42,488,045 on January 1, 2024, to 76,507,157 by December 31, 2024, raising a total of $223,742,335[66]. - The company raised gross proceeds of CA$6,219,667 ($4,613,312) from a private placement on January 24, 2024, at an offering price of CA$1.22 ($0.90) per unit[67]. - The Company raised gross proceeds of CA$41,574,279 ($30,000,000) from a private placement on May 22, 2025, at a price of CA$6.92 ($5.00) per unit[81]. Asset Management - As of June 30, 2025, the company's total property and equipment amounted to $21,141,623, with a carrying amount of $13,266,167[58]. - The right-of-use asset balance increased to $1,387,282 as of June 30, 2025, with accumulated amortization of $659,912[62]. - The lease liability as of June 30, 2025, was $826,755, with a current portion of $147,877[63].