Sivers Semiconductors: Strong Production Order and AI Deal Overshadowed by Q1 Miss and Surging Short Interest

Short sellers and weak Q1 results drive Sivers stock down 34% from peak, outweighing a $8.2M ALL.SPACE order and AI partnership with GlobalFoundries.

A $8.2 million production order from ALL.SPACE and a high-profile AI partnership with GlobalFoundries might seem like the makings of a sustained rally, but Sivers Semiconductors is instead facing a brutal selloff as short sellers pile in and first-quarter results disappoint. After initially pulling back 3.4% to 7.05 euros on profit-taking, the stock has since tumbled further, closing Wednesday at 6.71 euros — an 8% single-day drop and a 34% retreat from its June 3 peak of 10.23 euros.

The ALL.SPACE contract marks a significant milestone for the Swedish chip developer. Sivers will supply beamforming chips for the Ka-band, the electronic heart of modern satellite antennas that steer signals without moving parts. The deal, valued at $8.2 million, runs through 2027 and transitions the relationship from development into mass production. ALL.SPACE, which is being acquired by US defense contractor York Space Systems, is already testing its terminals with the Royal Canadian Navy, and counts major operators Telesat and Viasat among its backers. Sivers CEO Vickram Vathulya described the order as proof that the company’s technology meets the “stringent demands of the new satellite infrastructure.”

Just days earlier, on June 2, Sivers announced a cooperation with GlobalFoundries to develop laser arrays for AI infrastructure. The technology will be integrated into reference designs on GlobalFoundries’ silicon photonics platform, targeting co-packaged optics and linear pluggable optics for data centers. That news ignited a furious rally — the stock surged nearly 49% in 30 days, climbing from a March low of 0.27 euros to as high as 10.23 euros. But the AI narrative failed to provide lasting support.

The counterweight came on May 29, when Sivers reported first-quarter 2026 results that painted a much bleaker picture. Revenue fell 22% year over year to 61.9 million Swedish kronor. Adjusted EBITDA was negative 13.8 million kronor, and operating cash flow came in at minus 49.2 million kronor. Management attributed the shortfall to delays in the US defense budget, timing shifts in orders, and currency headwinds, warning that expected revenues from the first and second quarters have been pushed into the second half of 2026. Higher costs from sales headcount additions and preparations for a possible US listing also weighed.

Against that fundamental backdrop, short sellers have moved aggressively. Sweden’s financial watchdog Finansinspektionen now lists a net short position of 1.78% from Voleon Capital Management LP as of June 9, slightly reduced from an earlier 1.87%. Combined with positions from Two Sigma Investments LP (2.20%) and Qube Research & Technologies Limited (0.56%) — both dated June 3 — total disclosed short interest stands at 6.45%. The pressure is palpable.

The stock’s extreme volatility underscores the uncertainty. Annualized 30-day volatility has soared past 250%, an extraordinary level even for a small-cap semiconductor name. Yet the equity still trades 56% above its 50-day moving average of 4.28 euros, a reminder of how far — and how fast — expectations had run. The next major test will come with the half-year report, which will reveal whether the delayed revenues actually materialize in the second half of 2026. For now, the market is voting with its feet, and the short sellers are holding the advantage.