The photonics stock has run up more than 70% this week on speculation of a major hyperscaler partner, even as short sellers warn of a 'tax nightmare'

The increased focus on optical interconnects in data centers could be a boon for POET's business.

POET Technologies, which provides chip-scale photonic solutions, is the latest buzzy stock in the artificial-intelligence infrastructure trade.

Caught between AI enthusiasm, a retail fan base and accusations from short sellers - or those making bearish bets on the stock - POET shares $(POET)$ have been on a historic run. The stock has soared for three consecutive days, rising 76% since the beginning of the week toward an 11-year high.

The stock's recent breakout is partly driven by speculation of potential hyperscale partnerships. As chips become more powerful, they will increasingly need to use optical interconnects instead of traditional copper ones to transfer data quickly. POET produces optical interposers, which connect optical lasers to microscopic fiber-optic cables.

Google $(GOOGL)$ $(GOOG)$ is reported to be partnering with Marvell Technology $(MRVL)$ to develop new AI chips. On Monday, Google announced the eighth generation of its tensor processing units.

POET Chief Financial Officer Thomas Mika told StockTwits that the company had received a purchase order linked to Marvell and was also waiting on updates from existing customers Foxconn (TW:2354) and Luxshare (CN:002475). POET's connection to Marvell comes from its existing partnership with the photonic interconnect company Celestial AI, which was acquired by Marvell in February.

Mika also told StockTwits that orders for this year would exceed $5 million. Marvell did not respond to a MarketWatch request for comment, and a spokesperson for POET said the company had no additional comment.

The company has also been the target of a short-seller report from Wolfpack Research, released on April 14. Wolfpack accused POET of being "an obvious stock promote" that has pivoted its business model seven times in the past decade. The firm alleged that POET engaged in questionable promotional activities, such as paying influencers nearly $100,000 to tout the stock as a "hidden gem."

Wolfpack also warned that the company's stock dilution and business practices had qualified POET as a Passive Foreign Investment Company (PFIC), creating a "tax nightmare" that could trigger severe IRS penalties for U.S. investors.

POET has a history of shifting business plans. From 2016 to 2018, 100% of the company's revenue came from its photonics manufacturer subsidiary DenseLight Semiconductor. POET sold DenseLight in 2019 to pivot to its optical interposer product.

In response, POET said "we believe that we will not qualify as a PFIC," but announced its intent to move the company's headquarters from Canada to the U.S. to mitigate future risk.

In an interview this week with StockTwits, POET's Mika called short sellers "maggots" and accused Wolfpack of deliberately stirring up fear among investors right before the tax deadline.

POET shares have cultivated a devoted retail following, and they haven't been deterred by Wolfpack's report.

The stock garners frequent mentions on r/WallStreetBets and attracts nearly 9,000 weekly visitors to its own Subreddit r/POETTechnologiesInc. A post in Wall Street Bets titled $POET - THE 10 BAGGER YOU DON'T KNOW ABOUT picked up over 900 upvotes and 500 comments last June, with author u/JarfarFromAfar2 sharing that they owned 8,500 shares of the stock at an average price of $3.93.

In recent weeks, redditors have been closely monitoring for any whisper of POET purchase orders, and Mika's comments have sent ripples of confidence through the community that the company's technology is finally taking off. On StockTwits, message volume regarding the POET ticker has risen nearly 50% in the past day.

A short-seller report and potential new orders aside, POET is a highly speculative AI play. The company reported nearly $63 million in net losses on $1 million of sales for 2025, and the stock currently trades at about 60 times forward sales. In comparison, AI leader Nvidia's stock (NVDA) trades at about 12.5 times forward sales.