• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    POET Technologies (NasdaqCM:POET): Examining an Elevated Valuation After Surging Options Activity and AI Data Center Hype

    Simply Wall St·12/25/2025 01:34:37
    Listen to the news

    POET Technologies (NasdaqCM:POET) is back on traders radar after a sharp jump in call option activity, with rising implied volatility hinting that investors are positioning for bigger AI and data center related moves in the future.

    See our latest analysis for POET Technologies.

    That speculative options activity is landing on a stock that has already been lively, with a 30 day share price return of 51.62 percent and a 3 year total shareholder return of 146.32 percent. This points to momentum that is clearly building rather than fading, even after the latest pullback to 7.02 dollars.

    If POET has you watching semiconductor momentum, it might be a good time to see what else is moving and explore high growth tech and AI stocks as potential next candidates.

    With options traders leaning bullish and Wall Street nudging targets higher, the big question now is whether POET’s AI and data center upside is still flying under the radar, or if the market is already pricing in that growth.

    Price to Book of 13.9x: Is it justified?

    POET Technologies trades at 7.02 dollars while its valuation on a price to book basis screens as expensive compared to both peers and the wider semiconductor group.

    The price to book ratio compares a company’s market value to its net assets and is often used for hardware and semiconductor names where tangible capital and intellectual property matter. In POET’s case, a 13.9 times multiple suggests investors are paying a steep premium to the book value on its balance sheet for access to its optical interposer technology and forecast growth.

    That premium stands out because POET is still loss making, is forecast to remain unprofitable over the next three years, and has generated less than one million dollars in revenue while losses have been widening over five years. With the peer average at 2.9 times book and the broader US semiconductor industry at 3.7 times, the current valuation implies the market is aggressively front loading expectations for future revenue ramp rather than current fundamentals.

    Set against those benchmarks, POET’s 13.9 times price to book multiple is several turns above typical sector levels. This indicates investors are paying a growth stock style price for a business that remains early stage and volatile.

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

    Result: Price to Book of 13.9x (OVERVALUED)

    However, the story could unwind quickly if revenue ramps disappoint or if higher rates and risk aversion crush valuations for unprofitable, early stage semiconductor names.

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

    Build Your Own POET Technologies Narrative

    If you want to dig into the numbers yourself and shape the story your way, you can build a custom 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.

    Looking for more investment ideas?

    Before you move on, consider scanning fresh opportunities that match your style, from growth stories to resilient income plays and beyond.

    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.