Is POET Technologies (POET) The Next SanDisk?

Is POET Technologies (POET) The Next San Disk? Fahad Saleem Thu, July 2, 2026 at 7:40 PM GMT+7 2 min read POET We just covered The Next San Disk: 9 Potential Breakout AI Stocks You Shouldn't Miss. POET Technologies (NASDAQ:POET) ranks #6 (see The Next San Disk: 5 Potential Breakout AI Stocks You Shouldn't Miss).Number of Hedge Fund Investors: 14POET Technologies (NASDAQ:POET) is up about 35% so far this year but Redditors believe the stock can break out much further. POET makes optical photonics solutions for AI data centers. The company is at a critical inflection point right now. It needs to transition from proving the technology works to actually manufacturing it at scale.POET Technologies' (NASDAQ:POET) main play is External Light Source modules that can be deployed separately from the rest of the data center switching system. This is important because it reduces the risk if co-packaged optics adoption gets delayed.Q1 revenue jumped 194% year over year. Consensus indicates POET Technologies (NASDAQ:POET) will deliver 10x annual revenue growth in 2027, going from roughly $10 million in 2026 to nearly $100 million in 2027. That's the target management needs to hit.The company's flagship product, called the Optical Interposer, reshapes data transmission by enabling much faster data transfer with just a fraction of the power compared to copper. That's critical for AI data centers that need more power and speed. Right now power and cooling are the biggest bottlenecks in data center buildout.However, the stock trades at a 62x premium to peers on forward price-to-sales. The valuation is expensive, which means POET has little room for error.

While we acknowledge the potential of POET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.Disclosure: None. Follow Insider Monkey on Google News.