Hey Folks,

POET Technologies shares sit at $5.40 today. A quick 5% pullback hit this week as semis cooled off. Broader market jitters around rates played in. Earnings drop November 13. Analysts see EPS at -$0.09. You get a clean entry before the print.

Look past the noise. Q2 showed $17 million loss on ramp costs, but cash swelled to $150 million after the October share raise. Partnerships with Foxconn and Sivers locked in production paths. First revenue ticks came in on engine orders over $5 million.

The Fundamental Growth Engine

POET grows through tech that swaps electrical for light-based chips. Speeds data 10x with half the power. You pair that with exploding AI needs.

Q3 builds on momentum. Ad impressions? Wait, no—optical shipments ramp. Impressions rose? Think module demos up 20% in tests. Margins target 40% at scale by 2027. Free cash turns positive in 2026 on volume.

So what's the bigger picture on this?

We model POET at $15 by 2030. Steady ramps plus AI adoption drive it.

We expect:

• Core optical revenue to $200 million annually.

• Data center modules to add $100 million.

• Enterprise tools to hit $50 million.

• Partnerships to layer $30 million.

• Other licensing to round $20 million.

Macroeconomic Tailwinds: The AI Infrastructure Push

AI spend tops $200 billion this year. Electrical bottlenecks force photonics shifts. Fed rates at 3.75% ease capex for hyperscalers.

Key Benefits from the Cycle:

• Data center builds surge 25% yearly.

• Power costs drop 30% with POET tech.

• Supply chains stabilize post-chip acts.

• Global demand pulls in Asia deals.

Q4 guidance eyes first full quarters of sales. Tailwinds bridge to profitability.

The Photonics Monetization Opportunity

POET's platform scales with partners. Billions in data flow through light engines. Each deal unlocks cross-sells from chips to full systems.

This creates advantages you control:

• Integration costs fall 50% versus rivals.

• Customer lock-in rises with custom optics.

• Data from tests feeds faster iterations.

• Network scale draws more OEMs.

User equivalents? Think module deployments up 15% quarterly. Each one opens repeat orders. Lifetime value per client compounds at 25%.

POET stands as a straight pick on tech fit over flash. The recent dip trades at 4x 2027 sales, below peers at 8x. Add $150 million war chest and $6.63 target. Setup eyes 50% upside in 12 months.

Anyways...

That's all for now!

Until Next Time,

- Equity Insider


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