Serenity Questions SIVE's Development Strategy: Should Pivot to the US Market, Otherwise Valuation Will Be Trapped

BlockBeats News, August 29th, Serenity published an article questioning Sivers Photonics' (SIVE) development strategy, indicating that the company is currently still overly focused on the Swedish market, while American investors may be more interested in its future growth potential and the actual economic value brought by its orders.

Serenity stated that American analysts are more likely to focus on what Sivers' recent two wafer fab allocations mean and how much revenue and operational leverage this capacity will translate into against the backdrop of supply chain constraints and ASP (average selling price) increases. In addition, the scale and potential TAM (total addressable market) of developments such as NPO/CPO, pluggable optical modules, Ayar and other CPO manufacturers ramping up by 2028, ELS products in collaboration with O-Net, and the addition of six pluggable customers are also worth further discussion.

In contrast, local market concerns are centered around issues such as "how to stop the bleeding," why private clients cannot be disclosed, why the focus on transceivers, and what exactly the "business opportunity pipeline" signifies, leading to the management spending a considerable amount of time addressing these queries rather than discussing future growth.

Serenity believes that the more time Sivers invests in the Swedish market, the more its valuation is likely to be constrained by the Swedish market investment logic, and therefore, it needs to more actively demonstrate to American investors the future growth opportunities and the economic value behind them.