Sivers Semiconductors: Top Manager and Fund Bail as Dilution Looms After Record Rally

Two major stakeholders sold entire stakes after a stunning 2,900% surge, triggering a 6.5% drop. Now a 15% dilution plan looms.

The stunning rally that sent Sivers Semiconductors shares up nearly 2,900% in three months has abruptly given way to a wave of insider exits and fresh dilution fears. Over the past week, two of the company's most significant stakeholders — the wireless division chief and the institutional investor Cicero Fonder — have liquidated their entire positions, rattling a stock that only days earlier had touched a new 52-week high.

Harish Krishnaswamy, head of the wireless unit, sold his entire holding of 1.39 million shares via the Stockholm exchange in a transaction valued at roughly 100 million Swedish kronor (approximately €8.7 million). The move leaves the division head with no stake in the company. The message to the market could hardly be starker: even a senior executive with intimate knowledge of operations is taking no chances.

Cicero Fonder followed suit, offloading its full stake of 5.75 million shares — representing about 1.8% of the total share capital, a figure some analysts have rounded to 2%. The combined selling pressure triggered an immediate sell-off. On Thursday, the stock slid as much as 6.5% to €7.87 before recovering to close at €7.99, down nearly 5%. Just a day earlier, the shares had peaked at €10.23, a new 52-week high.

The retreat comes after a breathtaking ascent. Even after the drop, Sivers shares remain up roughly 60% over the past month and have gained almost 20% in the past week alone. But the annualized volatility has surged past 242%, highlighting the extreme risk embedded in the stock. The underlying business has yet to catch up with the market's enthusiasm. In the first quarter of 2026, Sivers generated revenue of just under 62 million kronor and posted a net loss of 42.7 million kronor.

Management's plans to raise capital are now drawing sharp scrutiny. At the annual general meeting scheduled for June 15, the board will seek approval for a capital increase that could dilute existing shareholders by approximately 15%. Additional stock option programs would add another 2% dilution. Against the backdrop of two high-profile exits, retail investors are unlikely to greet the proposals warmly.

Yet the company's long-term narrative retains its pull. Sivers is positioning itself as a key player in co-packaged optics, a market analysts project could grow to $80 billion by 2027. The company has already secured critical manufacturing capacity in that space, and ties to Nvidia add further speculative spark: the US chip giant plans to ship new network switches in the second half of 2026 for which Sivers is a potential supplier.

In a sign of ambition, Sivers shares have been listed on the OMX Stockholm Benchmark Index since the start of June, and management is pursuing a secondary listing on the Nasdaq in New York — a move that would expose the company to a far larger investor base for its semiconductor business. For now, though, the tension between operational reality and market fantasy is proving volatile, and the exits of two key insiders suggest that not everyone is betting on a smooth ride ahead.