The remarkable rally that lifted Sivers Semiconductors shares by more than 55% in a single month came to an abrupt halt on Friday, with the stock shedding 9.5% to close at €7.22. The pullback followed a fresh 52-week high of €10.23 hit just two days earlier on June 3, and has now erased nearly 30% from that peak. Yet even after the setback, the equity still trades a staggering 84% above its 50-day moving average of €3.92, underscoring just how overheated the move had become.
Adding to the pressure on short sellers, Nordea Bank this week jacked up the base interest margins on all its bear certificates and mini-future short products tied to the Swedish photonics company. Effective June 3, margins were raised to 76.5% for a -1 leverage bear certificate, 152.5% for a -2 factor product, and 228.5% for the most aggressive -3 instrument. Nordea cited poor liquidity in the securities lending market and rising borrowing costs. Short interest has swollen to roughly 17% of the free float, up from just 1.6% in early March, with Voleon Capital holding 1.86% and Two Sigma 1.78% of outstanding shares. When the partnership with GlobalFoundries sent the stock soaring, short sellers were forced to cover, amplifying the squeeze.
The stock’s extreme volatility — the annualized 30-day reading stands at 242% to 243% — is the very factor that underpins Nordea’s margin hike. Wilder swings make hedging short products more expensive. Meanwhile, index inclusion is providing structural demand: Nasdaq added Sivers to the OMX Stockholm Benchmark Index on June 1, and MSCI has confirmed an upcoming addition, forcing index funds to adjust their portfolios.
No fresh company news sparked Friday’s sell-off. The most recent corporate announcement came June 2, detailing the integration of Sivers’ laser arrays into GlobalFoundries’ silicon-photonics platform for AI infrastructure applications such as co-packaged optics and linear pluggable optics. The decline reflects instead a paring of expectations that had built up at a furious pace.
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The fundamentals remain a stark counterpoint to the rally. First-quarter net revenue fell 22% year on year to 61.9 million Swedish kronor. Adjusted EBITDA came in at minus 13.8 million kronor, operating cash flow at minus 49.2 million kronor, and the net loss widened to 42.7 million kronor. Management blamed delays linked to the US government shutdown in late 2024, budget constraints in defense, and unfavorable currency moves. Yet the opportunity pipeline grew 77% year to date to $799 million, and the company points to rising product deliveries from 2027.
That optimism will be tested at the annual general meeting on June 15. Shareholders must vote on two potentially dilutive measures. The first is a long-term incentive plan involving up to 7 million stock options, representing roughly 2% dilution. The second — far more consequential — is a general authorization for the board to issue up to 53.8 million common shares through equity, warrants, or convertible bonds. That equates to a potential 15% dilution of the current share count. The company cites organic growth, acquisitions, strategic investors, and a possible secondary listing on Nasdaq New York as reasons. Separately, an extraordinary general meeting in May already approved a targeted issue of 8.62 million new shares, settled May 29, which represented about 2.5% on a fully diluted basis.
Clouding the picture further, short-selling research firm Ningi Research published a report on June 1 alleging questionable revenue recognition and empty customer contracts — claims that remain unproven but land in a period of elevated scrutiny. In addition, the Swedish Economic Crime Authority is investigating whether confidential details about the planned Nasdaq listing leaked before the official announcement in April.
The company reiterates its full-year outlook, with automotive LiDAR series production for a major carmaker scheduled for the fourth quarter of 2026. In 5G/6G, Daybreak beamforming ICs for FR3 applications are now broadly available. A development contract with a leading US defense contractor continues, and the second phase of the EW-Star project under the US CHIPS Act has been confirmed, subject to technical milestones. Management calls 2027 a “transformative year” and targets long-term annual revenue growth of 25% to 30%. The shareholder vote on June 15 — and the interim report due August 6 — will offer the next real test of whether investors share that conviction.
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