Up 1,500% this year, the Swedish stock has become a popular target for shorts
Sivers, a small Swedish semiconductor company, has grown rapidly to become one of the most popular securities in Stockholm in terms of short positions / Photo: Shutterstock.com / Mats Wiklund
Shares in small Swedish semiconductor company Sivers Semiconductors have soared more than 1,500% in Stockholm trading since the start of the year - and have now become one of the country's most popular securities for downside bets (shorts).
The company's stock soared on the wave of excitement around artificial intelligence: investors, among other things, actively bought shares of small manufacturers of optical components for data transmission, which are used in the construction of AI infrastructure. Against this background, the market capitalization of Sivers (specializing in the production of optical components) since the beginning of the year and, as of May 26, reached SEK 23.5 billion ($2.5 billion), notes Bloomberg. At that time, the company's shares rose 20 times at the high since the beginning of the year.
However, investors increasingly doubt the sustainability of such a rapid growth of quotations, Bloomberg quotes investment economist of Nordnet company Kalle Soderberg. About 17% of Sivers shares, as of Ma. 26, were involved in short positions, follows from the data of S&P Global Market Intelligence. By comparison, that figure was only 1.6% in March. "There is a lot of speculation, the risk on [Sivers'] shares is perceived as high. Many investors <...> are ready to quickly lock in profits in this highly volatile stock if sentiment changes," Soderberg noted.
The Swedish company's stock has been falling for the past three days, during which time it has dropped just over 20%.
Nevertheless, despite the skepticism of some market participants, the recent rally has opened the way for Sivers to enter stock indices: for example, Nasdaq announced the inclusion of the company's securities from June 1 in the OMX Stockholm Benchmark Index, which includes about one hundred of the largest Swedish companies and is a barometer of the Swedish economy. And MSCI selected Sivers shares for one of its small capitalization indices.
So far, according to Marketscreener, only one analyst is following the company's securities. His target price for Sivers shares is 91% less than their value at the last closing.
On Friday, Ma 29, the Swedish company will publish financial results for the first quarter of 2026 - investors expect confirmation of possible future growth in the stock, writes Bloomberg.
This article was AI-translated and verified by a human editor
