Sivers Semiconductors: JPMorgan’s 5% Stake Collides With Insider Sales, a Criminal Probe, and a 15% Dilution Vote

Sivers Semiconductors hit a 52-week high then plunged after a short-seller report and insider exits, but JPMorgan built a 5.25% stake, adding to extreme volatility.

The week ending June 5 was a study in extremes for Sivers Semiconductors. The stock hit a 52-week high of €10.23 on Wednesday, then plunged 15.8% on Friday to close at €6.70. Yet in the middle of the carnage, JPMorgan Chase revealed it had built a 5.25% stake in the Swedish photonics company — its first-ever holding in the stock. The bank bought on June 2, the same day Sivers announced a strategic partnership with GlobalFoundries to develop optical solutions for AI data centers.

That €9.5 million selloff on Friday was no ordinary correction. Three forces converged: a televised attack by a prominent fund manager, the exit of two major shareholders, and a short-seller report that questioned roughly 31% of Sivers’ reported 2025 revenue. Richard Bråse of Protean Aktiesparfond Norden called management “completely unserious” and accused the company of manipulating its share price through “unrealistic press releases.” The message stuck. Investors dumped the stock in volume.

Harish Krishnaswamy, head of the wireless business, cashed out his entire holding for approximately €9.5 million. Cicero Fonder, one of the largest institutional investors, followed: 5.75 million shares, representing about 1.8% of Sivers’ capital, sold in full. Both moves were disclosed alongside the price collapse.

The short-seller report from Ningi Research, dated June 1, alleged that at least 97 million Swedish kronor of the company’s 2025 revenue was questionable — tied to products not yet manufactured and research grants. There are no formal charges, but the U.S. law firm Rosen Law Firm is already investigating potential securities claims. Meanwhile, Sweden’s Economic Crime Authority and Financial Supervisory Authority are probing whether there was an illegal insider-information leak around the company’s U.S. IPO in mid-April.

The broader semiconductor market offered no shelter. The PHLX Semiconductor Index cratered 10.3% on Friday after stronger-than-expected U.S. jobs data (172,000 new positions in May) and a cautious near-term AI demand outlook from Broadcom triggered a sector-wide valuation wipeout. Sivers slid with the tide, but its own storm was far more violent.

JPMorgan’s entry now stands as a heavyweight counterbalance to the short interest that has surged to 16% of free float — up from just 1.6% at the end of March. Before the purchase, the bank held zero shares. Its stake is split between 3.28% direct voting rights and the remainder via financial instruments. The move came as Sweden’s financial regulator reported an aggregate short-selling ratio of 6.55% for the stock. Nordea has already demanded margins as high as 228.5% on leveraged short certificates, reflecting extraordinary nervousness.

Sivers’ annualized 30-day volatility sits at 247%, a level that makes it one of the wildest Nordic stocks. The rally that preceded Friday’s rout was itself monumental: the stock had gained more than 2,400% in 2025, fueled by the Silicon Photonics theme and endorsements from Nvidia CEO Jensen Huang, who recently spoke of “unimaginable delivery volumes” for optical interconnect technology. Sivers develops III-V compound semiconductor laser components for photonics and, alongside GlobalFoundries, aims to serve the AI data center infrastructure boom.

Operationally, the picture is less compelling. First-quarter 2026 revenue fell 22% year-on-year to 61.9 million kronor, and adjusted EBITDA came in at minus 13.8 million kronor. The company blamed the U.S. government shutdown in the fourth quarter of 2025 and unfavorable exchange rates. Still, the opportunity pipeline grew 77% to $799 million.

All eyes are now on the annual general meeting scheduled for June 15. Shareholders will vote on two capital measures: a long-term stock option program covering up to 7 million shares (roughly 2% dilution), and — the far more contentious item — board authorization to issue up to 53.8 million new shares, convertible bonds, or warrants. That could dilute the equity base by as much as 15%. The board wants the flexibility to fund acquisitions, attract strategic investors, and support a planned secondary listing on the Nasdaq in New York.

Three board members are stepping down: vice-chairman Tomas Duffy, and founding investors Erik Fallström and Keith Halsey. The Nasdaq ambition remains central to the company’s strategy, but it requires converting 2024 and 2025 annual reports to the stricter PCAOB audit standard, which could shift revenue recognition between periods and alter inventory valuations.

Analysts at Redeye described the GlobalFoundries partnership as “positive but not a gamechanger” and set a price target of SEK 62 (€6.20) — below Friday’s closing price. With credibility under fire, a criminal investigation ongoing, and a dilution proposal that could test investor patience, the June 15 vote will determine whether Sivers’ management can still command shareholder trust.