Sivers Semiconductors Boosts Growth Pipeline to 799 Million Dollars Amid Revenue Drop and Sector Rout

Sivers Semiconductors posts 22% Q1 revenue decline, stock down 65% in 30 days, while insiders buy shares after a 700M SEK capital raise to bolster balance sheet.

Sivers Semiconductors finds itself caught between a deteriorating top line and a bearish turn in the broader chip sector, even as management moves to fortify the balance sheet and insiders signal confidence through fresh stock purchases. The Swedish photonics and wireless technology group reported first-quarter revenue of 61.9 million Swedish kronor for 2026, a 22% decline from the same period last year, with its photonics division taking the hardest hit at a 32% drop. The adjusted EBITDA landed at negative 13.8 million kronor, while operating cash flow stood at minus 49.2 million kronor. The Philadelphia Semiconductor Index entered bear territory in July, sliding more than 20% from its late June peak, a sell-off that Goldman Sachs described as one of the largest momentum-strategy unwinds in recent history, with hedge funds paring back semiconductor exposure.

The company’s stock has not been immune. Sivers shares closed at €3.19 on Friday — up 2.84% on the day but nursing a 64.77% loss over the past 30 sessions. The current price marks a retreat of nearly 69% from the 52-week high of €10.23 touched on June 3. The rout accelerated after a lock-up agreement covering insiders expired on July 16, releasing shares held by board members Bami Bastani, Karin Raj, and Todd Thomson, along with CEO Vickram Vathulya and CFO Heine Thorsgaard, into the open market. The stock lost roughly 26% in the seven days through Friday, with a single-day drop of more than 13% earlier in the week.

In a move that preceded the lock-up expiry by just days, Sivers completed a directed share issue of 12,280,701 new shares at 57 kronor each — a 9.7% discount to the June 30 closing price — raising approximately 700 million kronor before transaction costs. The offering was multiple times oversubscribed, drawing participation from both Swedish and international institutional investors, new and existing. CEO Vathulya cited the need to strengthen the balance sheet and accelerate capacity expansion for indium phosphide (InP) manufacturing in the photonics business, pointing to long lead times for fabrication equipment as a key reason to move early.

Yet even as the stock tumbled, several insiders stepped in to increase their stakes. On July 13, Sivers disclosed that Bami Bastani, Karin Raj, Helena Svancar, Todd Thomson, and Joakim Nideborn had completed share purchases authorized by the annual general meeting, with a mandatory 12-month holding period attached. The CEO also added to his holdings. One board member had acquired shares at a significantly higher price just a few weeks earlier, underscoring how quickly the stock has reversed course.

The capital injection comes at a time when the company’s financial results are under pressure. For the full fiscal year 2025, Sivers generated revenue of 306.6 million kronor, split between wireless (213.1 million) and photonics (93.4 million), but reported an operating loss of 177.8 million kronor and a net loss of 222.6 million kronor. Three large customers accounted for 183.4 million kronor of 2025 revenue, all from the wireless segment. On the positive side, the company’s opportunity pipeline — a measure of potential future business — has swelled to $799 million, a 77% increase from the end of last year, providing a counterweight to the near-term weakness.

Strategically, Sivers operates a fab-light model, running its own production facility in Glasgow while outsourcing high-volume laser manufacturing to WIN Semiconductors. Additional partnerships include GlobalFoundries, Jabil, and O-Net/Enablence. The company is also laying the groundwork for a potential dual listing in the United States: on July 9 it announced changes to its financial reporting calendar to align with PCAOB audit standards, the first step toward meeting US regulatory requirements.

From a technical standpoint, the stock’s 14-day relative strength index sits at 34.2, signalling oversold territory, while the 50-day moving average of €6.11 looms 48% above the current price — a stark illustration of the scale of the recent decline. Annualized volatility has surged to around 142%. Still, the shares remain roughly 1,100% above the 52-week low of €0.265, set in early March. With a market capitalisation of just over €1 billion, Sivers presents investors with a mixed picture: a balance sheet freshly reinforced by 700 million kronor in equity, a growing long-term opportunity pipeline, and a stock crushed by sector headwinds, a lock-up expiry, and fading quarterly numbers — all at once.