The market delivered a blunt verdict on Thursday after Sivers Semiconductors published its second-quarter results: the near-term numbers matter more than the long-term narrative, at least for now. Shares tumbled 11 percent to EUR 2.97, extending the discount to the 50-day moving average of EUR 4.07 to minus 27 percent.
The sell-off caps a volatile stretch for the Swedish chipmaker, whose stock had surged dramatically during the quarter before giving back much of those gains. At the end of June, the shares were changing hands at SEK 63.15, up from SEK 10.71 at the start of the period — a rally of nearly 490 percent that would create an unusual accounting headache for the company’s finance team.
The Cost of a Share Price Explosion
That extraordinary share price appreciation carried a hidden price tag. Under Swedish rules, payroll taxes linked to share-based compensation programs are calculated on the value of the underlying stock, and the second-quarter surge triggered a non-cash charge of SEK 42.9 million that landed squarely in the quarterly results.
The charge compounded an already difficult quarter. Net revenue fell 12 percent year-on-year to SEK 53.8 million, while adjusted EBITDA swung to minus SEK 35.5 million. The operating loss widened dramatically, from minus SEK 40.3 million in the year-ago period to minus SEK 116.9 million, with the payroll tax provision accounting for a substantial portion of that deterioration. The loss per share came in at minus SEK 0.38.
Management attributed the softer top line to a deliberate reallocation of resources. Rather than pursuing customer-specific development contracts, or NRE activities, the company is channeling funds into preparing for upcoming product launches. That shift is expected to show up in the numbers starting in the fourth quarter of 2026 and accelerate through 2027, when several programs are slated to move into series production.
Reuters also reported that some first-half revenue has slipped into the second half of the year, partly due to delayed US budget approvals at customers.
Product Momentum Tells a Different Story
Beneath the headline weakness, the product business is showing genuine traction. Product revenue climbed 18 percent year-on-year, and the company’s order and opportunity pipeline swelled to USD 1.2 billion in July — a 268 percent increase compared with December 2025. For investors willing to look past the current quarter, that metric offers the clearest evidence that the present softness is strategic rather than structural.
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Recent operational announcements reinforce that view. Sivers secured a production order worth USD 8.2 million from ALL.SPACE for Ka-band beamforming chips, supporting a production ramp-up in 2027. Earlier this month, the company unveiled a program with SemiNex valued at approximately USD 3.4 million for next-generation InP light sources used in AI data center cabling, with customer samples and initial production runs expected in the second half of 2027. A strategic collaboration with GlobalFoundries to develop silicon photonics solutions for AI infrastructure adds another pillar to the growth story.
Capital Structure Moves in Both Directions
Alongside the results, Sivers confirmed that lender Bootstrap Europe had exercised its conversion right on an outstanding USD 12 million convertible loan, converting the debt into equity and altering the balance sheet without requiring repayment of external debt.
In a separate transaction, investor Bootstrap Europe IV SCSp exercised all of its warrants, subscribing to 1,659,015 new ordinary shares at SEK 4.53 each. The exercise generated proceeds of roughly SEK 7.5 million and lifted the total number of shares and votes to 356,740,332 from 355,081,317 — a modest dilution that nonetheless signals confidence from a long-standing investor during a period of sharp price swings.
Insider activity has painted a more mixed picture. CEO Vickram Vathulya added 70,000 shares in July, bringing his holdings to just over 4.5 million shares. Chairman Bami Bastani, by contrast, sold 275,000 shares during the same period and also gifted and donated additional holdings.
A Market Weighing Near-Term Pain Against Long-Term Promise
The stock’s trajectory underscores just how far it has come — and how far it has fallen. At EUR 3.32 in early trading, the shares were down 1.0 percent on the day, though still up 28 percent over the past 30 days. From the 52-week high of EUR 10.23 reached in early June, the stock sits roughly 68 percent lower, a gap that highlights the disconnect between the kronor-denominated rally in the second quarter and the correction that has followed.
For investors, the central question is whether the strategic pivot justifies the current weakness. The swelling pipeline and fresh production contracts provide supporting evidence, but Thursday’s price action suggests the market is prioritizing the disappointing actuals over the promised 2027 payoff. The coming quarters will determine whether management’s bet on future product launches was the right call — or a costly detour.
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