Key Points
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Poet announced a contract with Lumilens today that could be worth more than $500 million over five years.
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The initial hardware purchase order starts at $50 million.
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The contract looks like a big win for Poet, but there’s still some uncertainty involved.
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Poet Technologies (NASDAQ: POET) stock is roaring higher in Thursday’s trading. The photonics company’s share price was up 33.4% as of 12:15 p.m. ET.
Poet stock is surging today after the company announced a substantial new contract win. As of this writing, the company’s share price is now up more than 330% across 2026’s trading.
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Poet stock surges on Lumilens deal
Poet published a press release before the market opened this morning, announcing that it had secured a major new deal with Lumilens. The contract will see Poet providing optical-networking technologies and could be worth more than $500 million over the lifetime of the deal. The base agreement involves Poet providing $50 million in optical-networking hardware and leaves the door open for Lumilens to substantially scale its orders over the next five years.
What’s next for Poet?
The Lumilens deal looks to be a significant win for Poet and marks its largest-ever contract win. On the heels of the dissolution of its contract with Marvell‘s Celestial AI unit, the new contract win is bolstering investor confidence in the stock.
On the other hand, there’s still some significant uncertainty connected to the company’s outlook and the new deal itself. If Lumilens ultimately winds up moving forward with purchasing roughly $500 million of artificial intelligence (AI) photonics hardware from Poet, it will be a huge win for the company. Still, it remains to be seen just how big the purchase will eventually wind up being. Additionally, Poet granted Lumilens warrants to purchase 22.92 million common shares over a nine-year period at a price of $8.25 per share.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
