POET Technologies Inc's stock surged 5.13% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor company.

The price increase appears to be driven by positive commercial developments, including a recently announced supply agreement with Lumilens. The agreement includes an initial $50 million purchase order and a framework that could scale to over $500 million in purchases over five years, providing POET with a clearer commercial pathway in AI-focused photonics.

Additionally, the company recently completed a $400 million equity financing round, which could provide capital to support its plan for a roughly ten-fold increase in manufacturing capacity. These positive developments come despite ongoing class action lawsuits alleging misstatements regarding the company's U.S. PFIC tax status and confidentiality breaches that reportedly led to the cancellation of a Celestial AI order.