POET Technologies Inc. (POET) is having a pretty good Thursday, with shares jumping more than 7% as technology stocks caught a nice tailwind. The Nasdaq climbed 0.97% and the broader tech sector gained 1.52%, creating exactly the kind of environment where a momentum stock like POET tends to thrive.

Riding the Tech Wave

Sometimes a stock rally is about company-specific news, and sometimes it's about being in the right sector at the right time. Thursday's move for POET appears to be the latter. The company is benefiting from an overall positive sentiment toward technology stocks, which analysts say reflects growing confidence in the sector's growth trajectory.

What makes POET's performance particularly interesting is the longer-term picture. Over the past 12 months, shares have climbed 71.57%, suggesting this isn't just a one-day wonder. The stock has real momentum behind it.

Technical Picture Looks Strong

The charts tell a compelling story. POET is currently trading 23.7% above its 20-day simple moving average and 39.4% above its 100-day SMA. That's solid strength across both short-term and longer-term timeframes, and the stock is positioned much closer to its 52-week highs than its lows.

The technical indicators show bullish momentum, though with a caveat. The RSI sits at 65.42, which means the stock is approaching overbought territory without quite being there yet. Meanwhile, the MACD remains above its signal line, confirming the positive momentum. Translation: the stock looks strong, but traders should watch for potential pullbacks as it gets stretched.

On the support side, the key level to watch is $7.00. There's no clearly defined resistance level at the moment, which could be interpreted as room to run or simply uncharted territory.

What Analysts Are Saying

Analysts have been warming up to POET Technologies. The consensus rating is Buy, with an average price target of $5.83. Here's the interesting part: the stock is already trading well above that target at $8.66, which suggests either the price targets need updating or the market is ahead of analyst expectations.

Recent analyst activity has been positive. Northland Capital Markets raised its target to $7.00 with an Outperform rating on December 2, 2024. Craig-Hallum bumped its target to $5.50 with a Buy rating on November 22, 2024. And Northland initiated coverage with an Outperform rating and $6.00 target on November 18, 2024.

Looking Ahead to Earnings

Investors have a bit of a wait for the next earnings report, which isn't scheduled until March 30, 2026. The expectations show meaningful improvement: analysts are looking for an EPS of negative $0.06, compared to negative $0.48 in the prior year. Revenue estimates call for $0.62 million, up dramatically from just $0.03 million year-over-year.

That revenue estimate is particularly striking. If the company hits that number, it represents a roughly 20x increase, which would certainly justify some of the momentum we're seeing in the stock.

The Momentum Score

POET scores an impressive 86.87 out of 100 on momentum metrics, firmly in bullish territory. The stock is clearly outperforming the broader market, and that high momentum score confirms the upward trend. For investors considering a position, the strength is apparent, though the usual warnings about volatility in momentum stocks apply.

POET Price Action: POET Technologies shares were up 7.17% at $8.66 at the time of publication on Thursday.