Sivers Semiconductors Index Entry Puts 17% Short Interest in Crosshairs as $799M Pipeline Builds

Swedish chipmaker Sivers Semiconductors faces a pivotal week as its stock joins the OMX Stockholm Benchmark Index on Monday, a move that coincides with elevated short interest that could spark a squeeze. With around 17% of free-float shares out on loan as of May 26 — up sharply from 1.6% in early March — the forced buying from index-tracker rebalancing creates an unusual tension between bearish bets and index inflows.

The stakes are heightened by first-quarter results that underscore the challenges the company is navigating. Net revenue fell 22% to SEK61.9 million, down from SEK78.9 million a year earlier, as a US government shutdown late last year delayed defence-related contract releases. Adjusted EBITDA sank to minus SEK13.8 million from minus SEK6.0 million, while the operating loss widened to minus SEK41.5 million. The net loss came in at minus SEK42.7 million, or minus SEK0.14 per share, a marginal improvement from the prior year.

Currency headwinds compounded the pain: the US dollar weakened 14% against the Swedish krona and the British pound lost 6% year-on-year.

Yet the pipeline tells a different story. Since the start of the year, the sales pipeline has surged 77% to $799 million, suggesting demand remains robust even if revenue recognition is shifting into the second half. Management reiterated its expectation of full-year 2026 sales growth, and the stock gained 2% on the day of the Q1 release as investors looked past the weak numbers.

Should investors sell immediately? Or is it worth buying Sivers Semiconductors?

Product ramps slated for 2027 add to the long-term narrative. Sivers has secured a two-year US CHIPS Act contract for an electronic warfare programme and is advancing automotive LiDAR, AI data-centre laser, and satellite communications products. On May 19, the company announced a one-year extension of the EW-STAR programme, with $6.6 million in funding from the Northeast Microelectronics Coalition Hub. Partners include BAE Systems, MIT Lincoln Laboratory, and Columbia University, focusing on wideband antenna arrays for simultaneous transmission and reception in aerospace and defence.

The annual general meeting on June 15 will be a critical test of investor sentiment. The nomination committee proposes a board overhaul: Joakim Nideborn and Helena Svancar as new members, Bami Bastani returning as chair, and Todd Thomson and Karin Raj standing for re-election. Nideborn is slated as deputy chair, while Tomas Duffy, Erik Fällström, and Keith Halsey step down. The reconfiguration aims to add capital-markets expertise and international technology know-how, with an eye on a potential US listing.

Shareholders will also vote on a raft of capital measures. The board seeks authorisation to issue up to 53.8 million new ordinary shares, equivalent to roughly 15% dilution, to fund organic growth, acquisitions, new strategic investors, and a possible Nasdaq New York dual listing. An incentive programme of up to 7 million stock options — around 2% on a fully diluted basis — accompanies the proposal.

Sivers Semiconductors at a turning point? This analysis reveals what investors need to know now.

The Nasdaq dual listing is already well advanced. Sivers has restated its 2024 and 2025 consolidated accounts to comply with Public Company Accounting Oversight Board standards, a prerequisite for a US exchange. Management says substantial preparatory work is complete, though timing and structure depend on market conditions. The directed share issue completed in May, which placed 8.62 million shares at SEK14.50 each and brought institutional investors on board, provides the financial flexibility to act quickly when the time is right.

On Friday, the stock closed at SEK72.90 in Stockholm. Adding to the mix, Sivers will also enter the MSCI Global Small Cap indices alongside the OMX Stockholm benchmark entry on June 1. For the bears betting heavily against the stock, the next few trading sessions may prove especially uncomfortable.

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Sivers Semiconductors Stock: New Analysis - 31 May

Fresh Sivers Semiconductors information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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