POET Technologies Inc's stock plummeted 5.02% during intraday trading on Monday, reversing from significant premarket gains.

The decline follows the company's completion of a US$400 million follow-on equity offering at US$21 per share, which was priced at a premium to its previous close. While this capital raise fueled a premarket surge of up to 13% as it is earmarked for manufacturing expansion and AI-focused R&D, the intraday sell-off reflects investor concerns over share dilution and skepticism about the timeline for converting artificial intelligence demand into tangible sales growth.

The stock had already experienced high volatility, tumbling 22.4% in the previous session after details of the financing emerged, highlighting market apprehension about the offering's dilutive effect and execution risks despite the company's growth ambitions.