Sivers Semiconductors: Insider Exits, Short-Seller Attack, and a Pivotal June Vote

Sivers Semiconductor stock plunged 34% in two days after an insider sellout, short-seller allegations, and a criminal probe into a suspected leak.

A stock that touched a 52-week high of €10.23 on Wednesday had crashed to €6.70 by Friday – a 34% plunge in just two trading days. Sivers Semiconductors ended the week still clinging to an 8% weekly gain, but the damage to investor confidence runs deeper. Three forces combined to shatter the euphoria: a complete insider sellout, a scathing short-seller report, and a criminal probe into a suspected information leak.

Insider and Fund Exits Spook the Market

The selling started at the top. Harish Krishnaswamy, head of Sivers' wireless business, offloaded his entire stake of 1.39 million shares on May 29 at SEK 71.36 each, worth approximately SEK 99.5 million. Swedish insider records confirm it was a full exit, not a partial book-slimming move. Just one day earlier, the company had announced a strategic partnership with GlobalFoundries to integrate its laser arrays into silicon-photonics reference designs for AI infrastructure – news that initially drove the stock higher.

The management exit was quickly followed by a complete withdrawal from the institutional side. Cicero Fonder, a former cornerstone investor, sold 5.75 million shares – roughly 1.8% of Sivers' capital – in a transaction valued at around SEK 452 million. Holdings data shows the fund was no longer a shareholder as of May 31. The timing, coinciding with the GlobalFoundries announcement, made both moves particularly jarring: investors were left wondering why insiders and a long-term backer were rushing for the door precisely when the AI narrative seemed strongest.

Short-Seller Allegations and a Criminal Probe

The selling pressure was amplified by a second front. Short seller Ningi Research published a report accusing Sivers of aggressive revenue recognition, claiming questionable sales accounted for roughly 31% of the company's reported total revenue in 2025. The allegations – unverified by regulators but potent enough to rattle sentiment – hit a stock already under scrutiny from Swedish prosecutors.

A separate investigation by the Swedish Economic Crime Authority is looking into whether inside information leaked ahead of the planned secondary listing on Nasdaq New York. The stock surged sharply around 48 hours before the official announcement, a pattern that prosecutor Jonas Myrdal described as "striking" and reminiscent of past pump-and-dump cases. The probe adds a legal dimension to the credibility questions mountingly rapidly.

The short interest in Sivers has exploded from just 1.6% of free float in March to 17% now. Nordea responded by hiking margins on triple-leveraged certificates to over 228%, a sign that the broker sees extreme risk in the name.

The Catalysts That Weren't Enough

Countering the negativity were two genuine positives. The GlobalFoundries partnership targets the red-hot AI infrastructure market, and the company's opportunity pipeline has grown 77% year-over-year to around $799 million. Meanwhile, index inclusion provided purely technical support: Sivers was added to the OMX Stockholm Benchmark Index and the MSCI Sweden Small-Cap, forcing passive funds to buy shares regardless of sentiment.

Yet even these catalysts could not hold the stock up. Redeye analysts, whose price target translates to roughly €6.20, called the GlobalFoundries deal positive but not a game-changer. The fundamental numbers remain sobering: first-quarter net revenue fell 22% to SEK 61.9 million, adjusted EBITDA was negative, and operating cash flow consumed SEK 49.2 million. The U.S. government shutdown in late 2025 and unfavorable FX headwinds were cited as drags.

Management still insists on a 2026 revenue growth target and a long-term CAGR of 25–30% from 2027 onward. But the market is demanding proof.

June 15: The Credibility Vote

The next major test arrives on June 15, when shareholders will vote on authorizing the issuance of up to 53.8 million new shares – a potential dilution of roughly 15%. The proceeds are earmarked for organic growth, possible acquisitions, and funding the Nasdaq listing. The meeting was postponed to June to allow the completion of an audit under U.S. accounting standards, a prerequisite for the dual listing. That audit has already forced restatements of the 2024 and 2025 balance sheets, revealing deeper losses than initially reported.

For a stock that swung from a 52-week high to a 34% crash in two days, the June 15 vote will be a litmus test. It will show whether institutional investors still trust a management team that lost its wireless chief and its largest institutional holder in the same week – and whether the promise of AI photonics is enough to outweigh the clouds of a short-seller attack, a criminal probe, and a dilutive capital raise.