Sivers Semiconductors' shares have plummeted 66% since their peak in June, weighed down by a capital increase that diluted value and the delay in publishing results. The management team has purchased shares worth 500,000 crowns each to show confidence.
Volatility has taken hold of Sivers Semiconductors. The Swedish company, specialised in semiconductors for data centres and artificial intelligence, has seen its shares drop 66% from the peak of €10.23 reached in June to €3.19 on Thursday. In the last week, the accumulated decline has reached 17%.
A Capital Increase of 700 Million Crowns
The origin of this correction lies in the capital increase executed in early July. Sivers placed 12,280,701 new shares at 57 Swedish crowns each, raising around 700 million crowns. The operation, oversubscribed, involved Swedish and international institutional investors. The funds will be used to expand the production of indium phosphide lasers and optical amplifiers, key components for AI data centres and LiDAR applications.
However, the dilutive effect has weighed more heavily than the growth prospects. The number of shares outstanding has increased significantly, putting downward pressure on the price. Additionally, the delay in publishing results, announced on July 9, aims to strengthen internal controls and align with PCAOB standards, the US regulator.
The Management's Bet on the American Future
Amid the storm, the management team has sought to send a signal of confidence. On July 13, Sivers announced that all its non-executive directors — Bami Bastani, Karin Raj, Helena Svancar, Todd Thomson, and Joakim Nideborn — had acquired shares worth approximately 500,000 Swedish crowns each. The CEO, Vickram Vathulya, invested nearly 950,000 crowns. The purchases were made under a programme approved at the general meeting, and the shares must be held for at least twelve months.
Although these operations are usually interpreted as a vote of confidence, the market has not reacted: the shares continued to fall. Investors seem to be focused on the accounting uncertainty and the dilution caused by the increase. The company is seeking a secondary listing in the United States, likely on Nasdaq, to broaden its investor base, but the process is generating short-term doubts.
Results and Strategic Agreements
Operationally, Sivers is showing progress that contrasts with its stock weakness. In its annual report for 2025, published on May 13, the company reported net revenues of 306.6 million Swedish crowns and a net loss of 222.6 million. The figures include accounting corrections to prepare for the leap to the United States. Additionally, it has closed significant agreements: a partnership with Tachyon Networks worth $1.5 million and another with Jabil for the development of 1.6T-LRO transceivers, a growing segment within photonics.
Sivers' market capitalisation is around €1.14 billion. The stock is trading below its 50-day moving average (€6.14) and its 100-day moving average (€3.86), while the RSI of 35 points is approaching oversold territory. Investors are weighing three factors: dilution, accounting uncertainties, and the symbolic value of management purchases. Resolution will come when the company publishes the delayed reports and finalises timelines for its anticipated dual listing in New York.
For investors interested in semiconductors, Sivers' current situation is an example of how capital increases can punish the price even when fundamentals improve. Those holding shares should monitor the publication of the delayed results and any news regarding the US listing, which could act as a catalyst. The volatility, with an annualised deviation exceeding 151%, is not suitable for conservative profiles.
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