Sivers Semiconductors' 48-Hour Rout: How Short-Sellers, Insider Sales, and a Criminal Probe Tore Through a Photonics Rally

The Swedish photonics company Sivers Semiconductors just lived through a week that encapsulates the entire bull-bear battle in miniature. On Wednesday, the stock touched a 52-week high of 10.23 euros, buoyed by its inclusion in the MSCI Sweden Small-Cap index. By Friday’s close, it had cratered 34% to 6.70 euros after a 16% single-day crash — leaving investors to sift through a pileup of sell triggers that arrived from multiple directions at once.

The most visible culprit was a short-seller report from Ningi Research, which accused Sivers of booking "hollow" customer contracts and flagged that roughly 31% of the company’s total 2025 reported revenue may stem from aggressive accounting. Ningi contended that the recent rally rested on speculative partnerships and broken promises on series production, not genuine commercial traction. The allegations have already drawn the attention of the Rosen Law Firm, which is weighing legal action on behalf of shareholders over potential misleading business statements.

But Ningi was far from the only actor weighing on the stock. On Thursday, Richard Bråse of Protean Aktiesparfond Norden appeared on Swedish television and described Sivers’ management as "completely unserious," accusing them of inflating the stock with "unrealistic press releases." That same day, the head of the wireless business, Harish Krishnaswamy, liquidated his entire shareholding for roughly 100 million Swedish kronor. Institutional investor Cicero Fonder also exited completely, dumping its 5.75 million shares — a move that erased approximately 452 million kronor in market value.

The pressure has opened a parallel criminal inquiry. The Swedish Economic Crime Authority is investigating a suspected information leak after the stock surged sharply roughly 48 hours before the official announcement of a planned secondary listing on the Nasdaq in New York. Prosecutor Jonas Myrdal said the pattern was "striking" and reminiscent of earlier pump-and-dump schemes.

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

None of this has been lost on the derivatives market. Short interest in Sivers has ballooned to 17% of free float, up from just 1.6% in March. Nordea has responded by hiking margin requirements on triple-leveraged certificates to over 228%. The annualized volatility of the stock now stands at 247%, a figure that speaks to deep fundamental uncertainty around the business.

Amid the turbulence, the company did score a positive strategic win. On June 2, Sivers announced a partnership with GlobalFoundries to develop photonics laser arrays for AI data center reference designs. The news initially propelled the shares, but the market quickly refocused on the credibility gap. Analysts at Redeye, who set a price target of 6.20 euros, described the deal as constructive but not a game-changer. The partnership did not come with any concrete revenue forecasts.

First-quarter numbers underscore just how far the company has to go to meet its own long-term ambitions. Net revenue fell 22% year over year to 61.9 million kronor, the adjusted EBITDA was negative, and operating cash flow came in at minus 49.2 million kronor. Management blamed the US government shutdown in late 2025 and adverse currency effects. On the positive side, the qualified opportunity pipeline surged 77% to around 799 million US dollars, and CEO Vickram Vathulya insists the demand from AI infrastructure and satellite communications is robust. He is sticking to a 2026 revenue growth target and a long-term compound annual growth rate of 25% to 30% starting in 2027.

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

All of that optimism will be put to a hard test on June 15, when shareholders vote on a proposal to issue up to 53.8 million new shares — a dilution of roughly 15%. The funds are earmarked for organic expansion, potential acquisitions, and funding the Nasdaq dual listing. The annual general meeting was pushed back to June so the company could finalise its audit under US GAAP, a prerequisite for the American listing. That process has already forced revaluations of the 2024 and 2025 balance sheets, revealing deeper losses than originally reported.

For now, the stock remains a battleground. The short-seller allegations have not been proven, but they have not been convincingly rebutted either. Until management can articulate a credible path to profitability — and reassure both retail and institutional holders — the volatility that defined this week looks set to persist. The June 15 vote will be the first real referendum on whether the current shareholder base still has faith in the story.

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Sivers Semiconductors Stock: New Analysis - 6 June

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

Read our updated Sivers Semiconductors analysis...

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