Sivers Semiconductors Faces a Crisis of Confidence as Credibility Attacks and Capital Concerns Mount

Swedish fund manager calls Sivers 'completely unserious' after short-seller report and insider sell-off send shares tumbling 11% in a day.

A prominent Swedish fund manager went public on Friday with a blistering critique of Sivers Semiconductors, branding the company “completely unserious” and accusing management of artificially inflating the stock price through what he called “unrealistic press releases.” The attack from Richard Bråse, portfolio manager at Protean Aktiesparfond Norden, sent shares into a tailspin, underlining how quickly the narrative around the photonics chipmaker has soured.

The stock closed at €7.12 on Friday, a drop of nearly 11% on the day. That marked a sharp reversal from just days earlier, when the shares had touched a 52-week high of €10.23 on June 3. Against that peak, the equity has now lost roughly 30% of its value. Even after the selloff, the stock remains more than 53% higher than a month ago — a rally Bråse described as fuelled by hype rather than substance.

A Cascade of Headwinds

Bråse’s comments came on the heels of a damaging short-seller report. On June 1, Ningi Research published a critical assessment questioning Sivers’ revenue recognition, the quality of its customer contracts, and its repeated failure to deliver on production ramp-up promises made since 2018. The firm disclosed it held a short position in the stock.

The next day, Rosen Law Firm launched an investigation into potential securities law violations, focusing on whether Sivers had issued misleading business information. Adding to the pressure, Swedish authorities are also examining trading patterns. Prosecutor Jonas Myrdal noted that the stock had surged roughly 48 hours before an official announcement regarding a planned US listing, calling the pattern “remarkable.”

Insider sales have compounded the unease. Harish Krishnaswamy, head of Sivers’ wireless business, liquidated his entire stake of 1.39 million shares, netting around 100 million Swedish kronor. Meanwhile, institutional investor Cicero Fonder sold its full holding of 5.75 million shares, equivalent to about 1.8% of the company’s share capital.

The short interest has exploded as a result, climbing to 17% of the free float from just 1.6% in early March. Nordea responded by sharply increasing margins on bear certificates.

Volatility Reigns Supreme

The stock’s wild swings are captured by a 30-day annualised volatility of nearly 244%. Even after the recent pullback, the shares trade roughly 82% above their 50-day moving average of €3.92. The relative strength index has cooled to 57.5 from the earlier overbought zone, but the credibility debate has yet to be resolved.

Operationally, the numbers do little to justify the euphoria. First-quarter net sales fell 22% to SEK 61.9 million, while adjusted EBITDA came in at minus SEK 13.8 million. Sivers blamed delayed US defence budgets following last year’s government shutdown and unfavourable currency effects. The company posted an operating loss of SEK 41.5 million and negative operating cash flow of SEK 49.2 million.

On the brighter side, the pipeline has grown 77% since the start of the year to $799 million. But the much-hyped partnership with GlobalFoundries, which triggered the June 3 peak, provided no details on contract value, minimum volumes, or revenue timing.

The AGM Showdown

Index additions — to the OMX Stockholm Benchmark Index and the MSCI Sweden Small Cap Index on June 1 — provided a temporary technical boost. But the real focus now is on the annual general meeting scheduled for June 15.

Shareholders will vote on a long-term incentive plan involving up to 7 million stock options, representing roughly 2% dilution. Far more consequential is a proposed authorisation for new shares, warrants, and convertible bonds, which could add up to 53.8 million common shares — about 15% of the current share count.

Management has cited possible uses including organic growth, acquisitions, strategic investors, and a secondary listing on the Nasdaq in New York. For a stock already trading at a 30-day volatility above 240%, the prospect of significant dilution is a powerful overhang. After Friday’s credibility shock, the burden is on Sivers to deliver hard answers — not just a compelling AI story.