POET Technologies (NasdaqCM:POET) Valuation Check After AI Partnerships, Financing Boost and Fresh Product Orders

POET Technologies (NasdaqCM:POET) is suddenly back on a lot of watchlists after a string of AI linked catalysts, ranging from fresh product orders to major financing and the high profile Marvell Celestial AI deal.

See our latest analysis for POET Technologies.

Those AI catalysts have clearly shifted sentiment, with the share price up 5.99% over the last day and delivering a 24.17% one year total shareholder return. This suggests momentum is rebuilding after a choppy stretch.

If POET’s story has you watching the AI hardware space more closely, it is worth exploring other potential beneficiaries through high growth tech and AI stocks as a starting point for new ideas.

With the stock hovering just below its latest analyst target after a sharp rebound, investors now face a key question: Is POET still trading at a discount to its AI potential, or is the market already pricing in the next leg of growth?

Price to Book of 12.6x: Is it justified?

POET’s last close at $6.37 aligns with a very rich 12.6x price to book multiple, signaling the market is paying a premium versus peers.

Price to book compares the company’s market value to its net assets. It is a useful lens for capital intensive, asset heavy sectors like semiconductors where balance sheet strength matters.

In POET’s case, paying 12.6 times book value suggests investors are baking in substantial future success for its optical interposer platform, even though the business remains small in revenue terms and still loss making.

Relative to both direct peers at 4.1x and the broader US semiconductor industry at 3.8x, POET’s price to book stands out as aggressively higher. This implies the stock is priced for a much brighter future than the sector average.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of 12.6x (OVERVALUED)

However, risks remain, including POET’s small revenue base and sustained losses, which could sour sentiment if commercialization or design wins disappoint.

Find out about the key risks to this POET Technologies narrative.

Build Your Own POET Technologies Narrative

If you see the numbers differently, or want to dig into the data yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your POET Technologies research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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