Sivers Semiconductors: Hedge Funds Rebuild Short Positions Just as Order Book Swells to $1.2 Billion

Sivers Semiconductors' Glasgow expansion and $1.2B pipeline clash with renewed short positions from D.E. Shaw and Citadel Securities.

The Stockholm-listed chipmaker finds itself in an unusual tug-of-war. Just as Sivers Semiconductors' Glasgow fab expansion and a record opportunity pipeline signal operational momentum, two of Wall Street's most prominent quantitative houses have re-established disclosed short positions — a reversal that unfolded within a single trading day.

D E Shaw and Citadel Securities were first flagged as disclosed short sellers in the Swedish share register in late August. A subsequent filing suggested Citadel had stepped away, only for a same-day correction to confirm both firms were again listed as public short positions. The whipsaw in regulatory disclosures mirrors the volatility that has come to define trading in the stock, which has seen annualized volatility readings exceed 150 percent.

A 29 Percent Rebound Meets Institutional Skepticism

The timing is notable. Sivers shares had climbed 29.2 percent since the company published its quarterly results and revealed that its opportunity pipeline had grown to $1.2 billion — a 268 percent jump from December 2025. The Glasgow manufacturing expansion, announced last Friday, was expected to provide additional tailwind. Yet the return of high-profile short sellers during this recovery phase suggests a cohort of institutional investors remains unconvinced by the valuation.

At Monday's close, the stock settled at EUR 2.57, up 2.6 percent on the day. It has since eased to EUR 2.51, a 2.3 percent dip, though the weekly gain still stands at 16 percent — evidence that the recent pullback has not fundamentally undermined the preceding rally.

Swedish disclosure rules require public notification once short positions cross specified thresholds. The rapid-fire pattern of reduction and reinstatement among two of the world's best-known quantitative trading firms points to an environment where near-term price action is being aggressively traded from both sides.

Insider Activity Sends Mixed Signals

The short-seller drama is not the only source of conflicting cues. Insider transactions over recent months paint a fragmented picture of sentiment among those closest to the company.

Chairman Bami Bastani sold 275,000 shares in July, while Headwaters Capital, under Todd Thomson, offloaded 950,000 shares during the same period — both transactions occurring as the stock advanced meaningfully. Contrast that with CEO Vickram Vathulya, who acquired 70,000 additional shares, lifting his total holding to 4,540,076 shares. A chairman and a major investor selling while the chief executive buys hardly constitutes a unified vote of confidence, leaving outside shareholders to weigh competing signals.

Glasgow Expansion and Strategic Partnerships

Operationally, the company is pressing ahead on multiple fronts. The Glasgow facility expansion is designed to scale production capacity, complementing a manufacturing order from ALL.SPACE worth $8.2 million for Ka-band beamforming ICs, which is expected to underpin the 2027 production ramp-up.

Sivers has also struck a strategic collaboration with GlobalFoundries to develop silicon photonics solutions for the AI infrastructure market, alongside a joint project with Jabil targeting an energy-efficient 1.6T pluggable transceiver module. Both partnerships position the company in growth markets that management expects to gain traction over the coming years.

The Financial Reality Check

The balance sheet tells a more sobering story. Second-quarter 2026 net revenue fell 12 percent year-on-year to SEK 53.8 million, while adjusted EBITDA came in at minus SEK 35.5 million — a figure weighed down by a non-cash social security charge of SEK 42.9 million triggered by the sharp share price appreciation during the quarter. The product and hardware segment offered a bright spot, growing 18 percent on a currency-adjusted basis.

Management has been explicit about the transition underway: shifting from development contracts toward scalable product revenue. The company expects this shift to become visible from the fourth quarter of 2026 and to accelerate through 2027 as multiple programs reach series production.

For now, investors are left with a bifurcated narrative. On one side sits a rapidly expanding pipeline, strategic partnerships with major industry players, and a CEO adding to his stake. On the other stand disclosed short positions from elite quantitative funds, insider selling from the chairman and a significant investor, and an operating business still running at a loss. The resolution of that tension — whether the growth story translates into revenue and profitability — will likely determine where the stock heads next.