Sivers Semiconductors: A $1.2 Billion Promise Collides With a Bleeding Cash Position

Sivers Semiconductors shares fell 27% this week as Q2 cash burn widened, despite hardware revenue growth and a $1.2B pipeline.

The arithmetic at Sivers Semiconductors is getting harder to ignore. The Swedish chipmaker's second-quarter report, released Thursday, laid out a business that is simultaneously building momentum in its product division and burning through cash at an accelerating pace — a combination that sent shareholders heading for the exits.

By Friday's close, the stock had shed another 14 percent to EUR 2.45, extending the weekly decline to 27 percent. That followed Thursday's initial 15 percent drop to EUR 2.44, leaving the shares roughly 38 percent below their 50-day moving average of EUR 3.94. The sell-off placed Sivers among the worst performers in the Stockholm market, even as the broader OMXS30 index managed modest gains.

The Numbers Behind the Slide

Net revenue for the second quarter came in at SEK 53.8 million, down 12 percent year over year. Adjusted EBITDA deteriorated to minus SEK 35.5 million from minus SEK 20.9 million in the same period a year earlier. Free operating cash flow for the first half widened to minus SEK 119.2 million, versus minus SEK 37.5 million in the prior-year period.

Part of the earnings pressure stems from an accounting quirk: a non-cash charge related to social security contributions triggered by the sharp run-up in the company's share price during the quarter. That detail, however, has done little to soften the market's reaction to the underlying cash burn.

A Product Story That's Gaining Traction

Beneath the headline weakness, there are signs of genuine operational progress. Hardware revenue climbed 18 percent on a currency-adjusted basis, suggesting customer projects are beginning to transition into series production. Management points to an expected revenue inflection in the fourth quarter of 2026 as initial production ramps come online, with 2027 positioned as the pivotal year.

The opportunity pipeline has expanded to $1.2 billion — a 268 percent increase from year-end 2025 — and the company has identified a new addressable market of $4 billion for optical semiconductor amplifiers used in switching systems for AI data centers.

Several partnerships have moved from discussion to contract. ALL.SPACE has placed a production order worth $8.2 million for Ka-band beamforming chips, with series manufacturing targeted for 2027. A strategic collaboration with GlobalFoundries will focus on silicon photonics solutions for AI infrastructure. And roughly two weeks ago, Sivers announced a development program with SemiNex covering next-generation InP light sources for AI data centers — news that has done nothing to arrest the stock's slide, which now stands at 33.6 percent since that announcement.

Capital Structure in Flux

The balance sheet tells a story of its own. Lender Bootstrap Europe has converted a $12 million loan into equity in full and exercised all outstanding warrants from the existing financing facility. The moves reduce debt but dilute existing shareholders' stakes — a trade-off that has clearly weighed on sentiment.

The board has also been strengthened with the addition of Joakim Nideborn and Helena Svancar. Management remains noncommittal on the planned Nasdaq listing, saying preparations should be complete in the first half of 2027, with the final decision dependent on market conditions, investor demand, and operational momentum.

The Long View Looks Steep

The chart tells a cautionary tale. At Friday's close, the stock sat 76 percent below its 52-week high of EUR 10.23, reached in June. It remains far above the 52-week low of EUR 0.2650 from early March, but the recent trajectory has erased a substantial portion of the gains accumulated during the year's earlier rally.

The central question for investors hasn't changed: Can Sivers convert its billion-dollar pipeline into actual revenue before its capital reserves run thin? The market's verdict, at least for now, is that the evidence isn't yet convincing.