Sivers Semiconductors Faces a Triple Threat: Global Chip Rout, Insider-Trading Probe, and a 15% Dilution Proposal

Shareholders in Sivers Semiconductors are bracing for a June showdown that could redefine the photonics firm’s trajectory. The stock closed at €6.70 on Friday, down 15.79% from the previous session, after a staggering two-day slide that erased nearly all the gains from a rally that had pushed the shares to a yearly high of €10.23 on Wednesday. The annualized monthly volatility now stands at 247.13% — a level that signals anything but calm waters ahead.

The plunge was part of a broader convulsion in the global semiconductor market. US chip stocks wiped out more than a trillion dollars in market value in a single day, with the PHLX semiconductor index tumbling almost 8.5% in afternoon trading. Broadcom, the bellwether that reported a revenue surge to $22 billion and a 143% jump in AI-related chip sales to $10.8 billion, still failed to meet the market’s sky-high expectations. Sivers, which supplies photonics and networking products for data centres and advanced telecoms, was swept up in the rout despite being a direct beneficiary of the same AI tailwinds that have driven the sector.

But the corporate narrative is just as turbulent as the market backdrop. The June 15 shareholder meeting in Stockholm will put a series of contentious proposals to a vote. The board is seeking authorisation to issue up to 53.8 million new ordinary shares, representing a potential dilution of roughly 15% for existing holders. If approved, the capital would fund organic growth, potential acquisitions, and a secondary listing on the Nasdaq in New York.

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

That Nasdaq ambition is already drawing scrutiny from Swedish authorities. Prosecutors are investigating possible illegal information leakage after an anonymous X account published precise details of the dual-listing plans some 48 hours before the official announcement. State prosecutor Jonas Myrdal described the timing and trading patterns as “remarkable” and noted parallels with past pump-and-dump schemes. Sweden’s Economic Crime Authority is examining whether the EU Market Abuse Regulation was breached.

The credibility question extends beyond the probe. Short seller Ningi Research has challenged the company’s revenue recognition and the substance of its customer contracts, while US law firm Rosen Law Firm is exploring potential claims over misleading business disclosures. The pressure intensified on Friday when portfolio manager Richard Bråse of the Protean Aktiesparfond Norden, speaking on Di TV, branded the management “completely unserious” and accused it of issuing unrealistic press releases to influence the share price.

Operationally, the numbers do little to soothe nerves. First-quarter revenue fell 22% year-on-year to 61.9 million Swedish kronor, with Sivers blaming delayed US defence budgets and currency effects. Adjusted EBITDA was negative at 13.8 million kronor, and operating cash flow came in at minus 49.2 million kronor. The company points to a growing pipeline — up 77% since the start of the year to $799 million — as evidence that the current weakness does not reflect long-term potential. Management reaffirmed its growth plan for 2026 and expects a stronger second half, with a long-term target of 25% to 30% annual revenue growth from 2027.

Yet the immediate road is littered with risk. US inflation data for May, due on Wednesday, could tighten monetary conditions further and add to the sell-off in high-growth equities. The shareholder vote on dilution follows the next Monday. By the time the next interim report lands on August 6, the market will have had two months to digest the outcome — and to assess whether Sivers can rebuild trust amid a probe, a short-seller attack, and a capital-raising proposal that leaves little margin for error.

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