Sivers Semiconductors AB (SIVE.ST) saw its shares continue their meteoric rise on Friday, gaining 15% to extend a year-to-date rally of more than 1,700%. The surge comes despite the company reporting a 22% decline in first-quarter net sales, which fell to SEK 61.9 million from SEK 78.9 million in the same period last year. The miss was attributed to delayed approvals for U.S. defense budgets and unfavorable currency movements, pushing some revenue into the second half of 2026.
The Kista, Sweden-based chip supplier posted an adjusted EBITDA loss of SEK 13.8 million, deepening from the prior year. Both retail and institutional traders have piled into the stock, drawn by its exposure to AI data centers, satellite communications, and defense applications. However, short sellers have also stepped up their bets against the company. According to Bloomberg data, short interest climbed to approximately 17% of the free float by May 26, up from just 1.6% at the start of March.
CEO Vickram Vathulya reiterated that the company remains on track to meet its full-year revenue growth target. The sales pipeline, representing potential future orders not yet recognized as revenue, expanded 77% to $799 million. Key growth drivers include wireless beamformers and indium phosphide lasers used in optical systems, as well as a 1.6T pluggable optical transceiver module developed with Jabil for data center applications.
DNB Carnegie described the quarterly report as mixed, noting an 8% organic decline in sales and ongoing cost pressures. The brokerage highlighted the pipeline expansion as a clear sign of strength, but cautioned that the company's cost base remains high relative to current revenue levels. Sivers ended the quarter with SEK 26.6 million in cash and negative operating cash flow of SEK 49.2 million.
Investor sentiment remains polarized. Calle Soderberg, an investment economist at Nordnet, characterized the stock as highly speculative, suggesting many investors may be "dancing close to the exit." The broader market has seen increased interest in smaller semiconductor names tied to AI infrastructure, as investors rotate beyond major players like Nvidia and Intel.
Index inclusion is providing additional support. Sivers is set to join the OMX Stockholm Benchmark Index on June 1, and MSCI has added the stock to its Sweden small-cap index. The company recently raised approximately SEK 125 million through a directed share issue and is working toward a potential dual listing on Nasdaq New York, which would require compliance with U.S. Public Company Accounting Oversight Board standards.
Analysts warn that the stock's elevated valuation hinges on the timely conversion of the pipeline into revenue. Defense budget delays, currency fluctuations, or slower customer adoption could pose significant risks. Sivers previously restated its 2024 and 2025 financial results as part of the audit process for a potential U.S. listing.