Sivers Semiconductors Under Fire as Short Seller Takes Aim at AI Claims and Rally

Sivers Semiconductors endured a rocky start to the week, with its stock sliding more than 6% on Monday — the very day the company was admitted to the OMX Stockholm Benchmark Index and an MSCI index. The selloff came as a report from Ningi Research, a short-selling firm, challenged the narrative that has driven the stock to improbable heights. According to the research house, Sivers' rally of more than 1,800% year-to-date rests largely on speculative foundations, not operational substance.

Ningi’s attack zeroes in on the company’s touted links to the Nvidia ecosystem, questioning whether Sivers has secured any meaningful foothold there. Citing an Nvidia engineer, the report argues that Sivers’ products cannot compete with established players such as Coherent or Lumentum. The short seller also casts doubt on the partnership with WIN Semi, alleging that production of indium-phosphide laser diodes has been hampered by poor reliability. More pointedly, Ningi flags around 97 million Swedish kronor in revenue — representing 31% of the company’s 2025 top line — as “questionable,” claiming it was booked for products not yet manufactured or from government-funded R&D programs.

The ambush lands against a backdrop of weak quarterly numbers. Sivers reported net revenue of 61.9 million kronor for the first quarter of 2026, down 22% from 78.9 million kronor a year earlier. The net loss came in at 42.7 million kronor, while adjusted EBITDA stood at minus 13.8 million kronor. Management attributed part of the decline to delays in U.S. defense budgets following the late-2025 government shutdown and to unfavorable currency movements. Yet the explanations have done little to blunt the impact of the short-seller report.

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

There is a silver lining, however, that the short seller’s narrative downplays. Sivers’ qualified pipeline has surged 77% since the start of the year, reaching $799 million compared with $453 million at the end of 2025. CEO Vickram Vathulya points to robust demand from AI infrastructure and satellite communication customers, with several product launches scheduled for 2027. The widening gap between current losses and future opportunities is precisely the tension that now defines the stock.

Analysts are deeply split on valuation. DNB Carnegie updated its fair value range on Monday, lifting it to 12–26 kronor from 3.5–8.5 kronor previously. The bank raised its 2028 EBITDA forecast by 30%, citing long-term portfolio potential, though it trimmed near-term estimates for 2026 and 2027 on higher development costs. Meanwhile, Redeye holds fast to a base case of 6.20 kronor, implying a steep discount to the current trading price of around 68 kronor. The wide dispersion underscores the uncertainty surrounding Sivers’ path from pipeline to profit.

Operationally, the company has been busy. It is collaborating with Jabil on a 1.6-terabit pluggable transceiver module for high-speed data transmission in AI data centers, a project that could bolster its credibility in the optics market. A separate $1.5 million development partnership with Tachyon Networks aims to expand the fixed-wireless-access portfolio. And Sivers is pressing ahead with plans for a secondary listing on the Nasdaq in New York, having restated its 2024 and 2025 financials to PCAOB standards to attract U.S. institutional investors.

The next major inflection point comes on June 15, when the annual general meeting is scheduled. Shareholders will vote on proposed board appointments including Helena Svancar and Joakim Nideborn. Until then, the market is left weighing two opposing forces: the short seller’s granular criticisms and the promise of a pipeline that has swelled to nearly $800 million. For a stock trading at a multiple that leaves little room for error, the outcome of that tug-of-war will determine whether the rally can survive the scrutiny.

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