https://www.youtube.com/watch?app=desktop&v=YxTVMd_8ztg
Next up is POET Technologies Inc ($POET) which is currently sitting at $4.44 per share with a
market cap of $203.9mn. POET has had a solid year so far being up by 377% partly thanks to the AI
buzz around their innovative Optical Interposer technology. But over the last 12m horizon they
are only up by 48%, so there appears to have been some kind of market correction there to
take them to fair value territory. But saying that, with the catalysts which they have in the
tank and the outlook of AI, there is plenty more room for growth with this play and here’s why.
POET is a design and development company, offering high-speed optical engines, light source products
and custom optical modules to the artificial intelligence systems market and to hyperscale
data centers. POET’s Optical Interposer-based products are lower cost, consume less power
than comparable products, are smaller in size and are readily scalable to high production
volumes. They initially aimed at addressing the data center market, where such components would
enable strong cost, space, and power savings, but lately interest from the AI space has grown
incredibly strong and resulted in even more spotlight on solutions for these applications.
POET and Mitsubishi Electric recently collaborated to develop 3.2T Optical Engines for AI Networks.
The collaboration is aims to co-develop integrated optical engine chipsets for 3.2T
pluggable transceivers, a highly sought-after product for optical connectivity in the rapidly
growing artificial intelligence networking market. POET and Mitsubishi Electric will
jointly support product demonstrations with major customers and aim to complete the optical engine
chipsets in early 2025, and to then demonstrate the innovation during the first half of that year.
AI and cloud datacenter networks are the leading consumers of pluggable optics. And
the global optical transceiver market for 800G and 1.6T is projected to grow at a
CAGR of 33% from $2.5 billion in 2024 to $10.5 billion by 2029, according to LightCounting’s
forecast. I feel this presents an excellent growth opportunity for this
partnership in the quarters to come. One to certainly keep on your rada
