Sivers Semiconductors enters a pivotal week after a disappointing first-quarter earnings report, a decline in its share price, and its upcoming inclusion in a key Swedish stock market index. The company's shares ended Friday at 68.95 Swedish crowns, a 1.8% drop for the session and a 5.4% decline over the past five trading days. Despite the recent pullback, the stock has still surged more than 1,500% since the start of the year, reflecting the intense investor interest in the AI chip sector.
Q1 Results Disappoint
The Swedish chipmaker reported first-quarter net sales of 61.9 million crowns, down 22% from 78.9 million crowns in the same period last year. The company's adjusted EBITDA loss widened to 13.8 million crowns from a loss of 6.0 million crowns a year earlier, while its operating loss expanded to 41.5 million crowns. Management attributed the revenue shortfall to delays in U.S. defense budget approvals and adverse currency movements. CEO Vickram Vathulya noted that revenue originally expected in the first quarter has been pushed into the second half of 2026, but reiterated that the company remains on track to meet its full-year revenue growth targets.
Index Debut and Market Reaction
On Monday, Sivers Semiconductors will be added to Nasdaq's OMX Stockholm Benchmark Index, a widely followed index that tracks major and frequently traded stocks on the exchange. The index is reviewed semi-annually, and inclusion can attract passive investment flows. The stock experienced volatile trading last week, with shares rising 17.35% on Monday and edging higher on Tuesday before losing 15.49% on Wednesday, 4.36% on Thursday, and another 1.78% on Friday. Friday's trading volume reached approximately 36.9 million shares.
Analyst and Critic Views
DNB Carnegie described the first-quarter report as "a mixed bag" in a flash note, estimating that organic sales fell 8% year-over-year on a like-for-like basis. Meanwhile, Marlon Värnik, a fund manager at Exelity, told Dagens Industri that the stock has become a "meme stock" driven largely by U.S. retail investors rather than underlying fundamentals. He characterized part of the rally as "air" and speculation. The company's opportunity pipeline has grown 77% this year to $799 million, driven by product ramps expected in 2027 and demand in SATCOM, photonics, and wireless markets. Sivers has also increased costs by hiring additional sales staff and preparing for a potential U.S. dual listing.
Capital Raises and Governance
Total shares outstanding increased to 319,953,572 as of May 29, following an 8.62 million-share directed issue earlier in May that raised approximately 125 million crowns before expenses. Investors must be registered with Euroclear Sweden by June 5 to vote at the company's June 15 annual meeting, which will include board elections, a long-term incentive plan, new share-issue authorizations, and the board's recommendation to forgo a dividend in 2025.
Risks Ahead
The stock's astronomical year-to-date gain leaves it vulnerable to a correction if the company fails to deliver on its growth promises. Delayed defense revenue that does not materialize in the second half, a prolonged U.S. listing process, or a drop in index-driven buying after Monday could all weigh on the shares. Nordea's recent increase in financing costs for Sivers bear certificates and short mini-futures—tools for betting against the stock—highlights thin stock-lending liquidity and the stretched nature of the current valuation.