POET Technologies Inc. (POET) is a name that I have been extremely bullish on, rating it as a strong buy in multiple instances over the past year. Recently, POET’s stock has been under pressure as it is down more than 13% over the past month, despite a successful participation at the OFC 2026 conference. During the conference, POET announced a significant partnership with optoelectronics giant LITEON and an expanded partnership with Lessengers; both are for the co-development of 1.6T transceivers.
With POET expanding its partnerships with Tier 2 ODMs, the company’s moves over the past years appear to have resulted in a CPO ecosystem parallel to Nvidia’s (NVDA). In a world where hyperscalers are utilizing their own ASICs and custom AI infrastructures, these partnerships could allow POET to penetrate hyperscalers’ data centers as they continue to shift away from Nvidia’s complete, closed-loop solutions.
The significance of this ecosystem is already starting to show, in my opinion, after Nvidia’s latest investments in Coherent (COHR) and Lumentum (LITE) amidst the ongoing Indium Phosphide (InP) shortage. As these investments could further tighten laser supply, POET could have a significant moat since its 1.6T optical engines utilize 4 laser chips, potentially allowing its customers to produce more modules at the same global InP supply.
In my opinion, this moat could see POET receiving meaningful orders from its partners, LITEON and Luxshare, setting it up for a meaningful revenue ramp in late 2027. With a strong cash position to expand capacity ahead of this potential demand, I’m reiterating my strong buy rating for POET.
OFC 2026 Highlights
POET is coming off the OFC 2026 conference, where it showcased its external light source (ELS) products, Starlight and Blazar. The company also received the Lightwave Innovation Reviews award for its Teralight optical engine during the conference, which is set to be at
