Bulls Vs Bears: POET Stock Eyes Best Month In Over 2 Years – But Is The Rising Short Interest Flashing A Warning Sign?

• Short interest in POET has risen to nearly 18% of its float, with the company currently having 172.6 million shares outstanding.
• Night Market Research recently questioned POET’s business dealings and said it holds a short position on the stock.
• The stock came under heavy selling pressure after the company announced a $400 million offering to a single institutional investor.

Shares of Poet Technologies (POET) are heading toward their biggest monthly gain in over two years as enthusiasm for the company’s AI-driven growth prospects has ignited a powerful rally, yet a sharp rise in short interest to its highest level in at least nine months suggests skeptics are quietly positioning against the surge.

Despite wild swings in trading this month, POET stock has surged more than 86%, powered by strong investor optimism surrounding the company’s $50 million Lumilens deal.

However, Nasdaq data implies that short interest has climbed to nearly 18% of the float, the highest since August 2025. Koyfin data shows the company has 172.6 million shares outstanding.

POET shares were trading 0.7% lower in pre-market on Friday, having declined in the past four sessions.

Bears Question POET’s Business Orders

Earlier this month, Night Market Research revealed it holds a short position in POET, arguing that the company has not been fully transparent about its business dealings following the reported cancellation of orders from Marvell Technology.

The firm also raised concerns over POET’s recently announced purchase order from Lumilens, describing the company as “an obscure startup” that it believes has little intention of fulfilling the agreement.

Prior to that, Wolfpack Research disclosed a short position in POET and raised concerns over potential tax risks for shareholders. The firm alleged that POET could qualify as a Passive Foreign Investment Company (PFIC), which may expose U.S. investors to stricter IRS reporting requirements and potentially higher tax liabilities.

Celestial Order Cancellation, $400M Offering Trigger Sell-off

The stock came under heavy selling pressure after the company announced a $400 million offering to a single institutional investor, involving more than 19 million common shares and warrants. POET said the proceeds will fund manufacturing expansion, R&D growth, acquisitions, scaling of its light source business, and general corporate operations.

Sentiment had previously soured after the company revealed that all purchase orders from Celestial AI had been canceled. POET said the orders, including initial production commitments announced in 2023, were scrapped over an alleged breach of confidentiality obligations.

Retail Traders Are Mixed On POET

Retail sentiment surrounding POET on Stocktwits has remained in the ‘bearish’ zone for at least a week. Meanwhile, chatter was mixed.

One user expects the stock to drop to $8.

However, another user said the stock is gearing up for the next rally.

The stock has gained around 96% so far this year.

Read also: Nasdaq, S&P 500 Futures Rise Amid Iran Ceasefire Talks, Dell AI Rally: Why HPE, NOW, SMCI, ASTS, GME Are In Focus

For updates and corrections, email newsroom[at]stocktwits[dot]com.