POET Technologies: Commercial Proof Is Improving, But The Stock Needs Revenue
Ticker: POET Latest close: $7.81 on Oct. 5, 2026 Updated rating: Hold
Summary
I downgrade POET Technologies (POET) from Strong Buy to Hold. The balance sheet is much stronger, but the investment case still depends on qualification, production and revenue conversion that the latest quarter has not yet proved.
Q2 2026 revenue was $569,925, up 112% year over year and 13% quarter over quarter, with a net loss of $11.3Mn, or $0.07 per share. The sequential growth streak reached six quarters.
The original technology and demand thesis strengthened through a $50Mn Lumilens purchase order, a post-quarter $2.4Mn order, and a production ramp still scheduled for the second half of 2026. These are commitments and milestones, not yet recognized revenue.
My base valuation is $8.05 per share using 2028E revenue of $100Mn, 8x EV/Sales, $650Mn of assumed net cash, and 180Mn diluted shares. That implies about 3% upside from the latest close.
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Source; Ayar Labs
