Sivers Semiconductors: The 1,700% Rally Meets a Short-Squeeze Tipping Point as Margins Spike to 51%

Nordea hikes margins on short ETFs to 51-153% as Sivers stock surges 1,700%, short interest hits 17%, and index inclusion looms on June 1.

Nordea Bank has thrown a wrench into bearish bets on Sivers Semiconductors. Starting 28 May 2026, the Swedish lender hiked the base rate margin on all its exchange-traded short products linked to the stock to sky-high levels. The cost of borrowing for a leveraged short position with a factor of -1 now stands at 51.5 percent. For -2 and -3, the figures jump to 102.5 percent and 153.5 percent respectively. Mini Future Shorts carry a 50 percent margin. The reason, Nordea says, is deteriorating liquidity in the securities lending market and rising borrowing costs for the shares.

The margin squeeze comes at a time when the stock itself has been on a tear. Since the start of the year, Sivers Semiconductors has surged roughly 1,700 percent, pushing its market cap to around 23.5 billion Swedish kronor, or about $2.5 billion. The rally is eye-catching for a company that posted a net loss of 222.6 million kronor in 2025 — a figure that was actually restated from an earlier 186.5 million after the firm adapted its books to PCAOB standards as part of a potential Nasdaq listing. The operating loss (EBIT) widened to 177.8 million kronor, while free cash flow over the trailing twelve months was negative 92.4 million kronor. Revenue for 2025 came in at 306.6 million kronor, up only slightly.

The disconnect between the stock’s price and its fundamentals has drawn in short sellers. As of late May, around 17 percent of the free-float shares were out on loan, compared with just 1.6 percent in early March. U.S. hedge fund Voleon Capital Management recently disclosed a short position of 0.53 percent. The surge in borrowing costs for bears is partly a product of that concentrated short interest — and it may spark a rush to cover if the stock refuses to crack.

Yet the rally is not purely speculative. A technical tailwind arrives on 1 June, when Sivers joins both the OMX Stockholm Benchmark Index and the MSCI Small-Cap Index. Passive funds and institutional trackers will have to buy the stock, providing a supportive floor. That sets up a classic clash: short sellers who are now paying through the nose for their positions versus index-driven inflows.

Amid the financial turbulence, the company continues to secure strategically valuable contracts. On 19 May, Sivers extended its EW STAR electronic warfare project for another year. The award, valued at $6.6 million, comes from the Northeast Microelectronics Coalition Hub and involves partners such as BAE Systems, MIT Lincoln Laboratory and the Columbia University. The collaboration aims to develop broadband antenna arrays capable of simultaneous transmit and receive — a technology with clear defense applications. Separately, Sivers is also working with Jabil on 1.6T optical transceivers, though investors are still waiting for measurable revenue contributions from that partnership.

Today, 29 May, Sivers finally publishes its first-quarter results for 2026. The report was originally scheduled for 20 May but was delayed due to the ongoing audit work tied to the restated financials. The numbers will be scrutinized for any sign that operational momentum is catching up with the stock’s valuation. The consensus analyst price target currently sits at around 6.73 kronor — a fraction of the current trading level.

The Nasdaq listing remains under review, not a done deal. The restatement to PCAOB standards was a necessary step, but the board has yet to formally approve a move. The annual general meeting is set for 15 June 2026, where shareholders may get more clarity on the company’s strategic direction.

For now, Sivers Semiconductors is a story of extremes: a 1,700% rally, a 17% short bet, punitive margin costs, and an earnings report that could tip the balance one way or the other. The next few trading sessions will reveal whether fundamentals reassert themselves or the squeeze continues to tighten.