The steady progress for POET Technologies is predicted to pick up speed as its products begin to accumulate revenue and attract broader industry attention, a recent analyst report said. The report highlights POET’s products that target the artificial Intelligence-machine learning (AI-ML) market, pointing out that they are driving increased interest and complementing the highly regarded data-center solutions the company has designed.
The report, published on April 10, set a price target of $14.50 USD per share (approximately $19.60 CAD), which represents a 275% increase in value over its share price of $3.87 USD at the start of trading this week. A photonics and optoelectronics company headquartered in Toronto and with offices in Asia and the United States, POET has a lead customer in the AI-ML sector that has acquired more than $64 million USD in investor capital.
Celestial AI will purchase light engines and LightBars from POET, which demonstrated its O-Band LightBar™ with high-power CW (continuous wave) lasers for co-packaged optics and AI-ML GPUs at the OFC 2023 industry gathering in San Diego. The analyst report states: “POET will be providing Celestial AI LightBar modules. Each accelerator Celestial AI sells has four POET chips. At $200 per chip, Celestial could represent $800 million in potential revenues by itself. We believe most if not everything Celestial is planning to sell contains POET.”
More reason for excitement is in the company’s growing suite of data-center networking products for ADVA, LuxShare Tech, and BFYY. ADVA, a European network equipment provider (recently merged with AdTran, Inc.), has collaborated with POET on an innovative set of optical engines to extend the life of legacy data-center infrastructure. POET has developed the multi-engine 100G CWDM4 and 100G LR4 chip-on-board solutions for ADVA, enabling seamless migration to next-generation speeds. ADVA will use POET’s multi-engine transmit and receive chips in an innovative pluggable solution that packs the functionality of four independent 100Gbit/s interfaces into a single QSFP-DD housing. The ADVA MicroMux™ Quattro brings the industry’s smallest aggregation technology to the market and, according to the analyst report, POET’s joint venture, SuperPhotonics (SPX), based in Xiamen, China, can expect to book revenues from these products by the end of 2023. [VIDEO: The ADVA-POET Partnership Explained]
In the second half of the year, production is expected to begin on LuxShare’s low-cost, high-efficiency 400G and 800G transceiver solutions that are scheduled to include POET’s receive optical engines. [VIDEO: Learn More About POET’s partnership with LuxShare Tech]
And BFYY (Beijing FeiYunYi Technology) will have POET’s custom-designed optical engines from SPX for use in transceiver modules it sells to end customers. In fact, BFYY — a company owned by industry veterans in the Chinese telecom industry — was formed exclusively to sell modules using POET-designed optical engines sourced from SPX. With deep connections to the telecom industry in China, BFYY is investing in assembly facilities to build, market, and sell modules that will be competitive in the data-center market, specifically focused on large telecom service providers. POET’s third customer in China is FibreTop Technology, which plans to leap over its competition with the help of POET’s 100G and 200G optical engines in its pluggable transceivers.
On top of that activity, momentum is gathering for POET Infinity™, a 400G chiplet that was announced in March in time for the OFC meeting. The small form factor of the POET Infinity chiplet enable multiples of it to be side-by-side in the same package to achieve 800G and 1.6T speeds. Pluggable transceiver customers can use two POET Infinity chiplets to achieve 800G in a 2xFR4 transmitter in a QSFP-DD or OSFP package, or use four Infinity chiplets for 1.6T 4xFR4 solutions in an OSFP-XD package. The POET Infinity product line carries forward POET’s differentiation of all passive alignments and monolithically integrated waveguides, multiplexers, and demultiplexers, which translates to lower cost, power, and ease of assembly for customers.
By using POET’s optical engine chiplets, module designers can easily scale simply by multiplying the number of them in a single package.
Whether it’s AI-ML light sources and light engines or products that benefit data centers, the key is the foundational technology platform, the POET Optical Interposer™. Offering dramatically reduced bill of materials, lower cost, and inherent scalability, the POET Optical Interposer is becoming one of the high-tech world’s stories of the year as it shows how elegantly it can deliver solutions needed right now for hot markets like AI and data-center networking. As the analyst report says, “customers should beat a path to your door” if you can achieve what POET has so far in 2023.
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The Information contained here is a paid advertisement and is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Prior to making any investment decision, it is recommended that readers consult directly with the public company and seek advice from a qualified investment advisor. The corporate information included in this was provided by POET Technologies in order to help investors learn more about their company. The information provided is purely and solely the responsibility of POET Technologies who has reviewed and approved all material for accuracy. Stockhouse does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. Investing in securities is speculative and carries risk. Persons who wish to buy or sell securities should only do so at their own risk and in consultation with their registered securities advisers. Stockhouse does not own stock in POET Technologies.
