Sitime Corporation

Benchmark analyst Gary Mobley initiated coverage of SiTime Corp. with a Buy rating and an $850 target price on August 20, citing the growing relevance of precision timing for system manufacturers. SiTime reported second-quarter net revenue of $157.4 million, up 127% year-on-year, with adjusted gross margins of 67.1% and adjusted net income of $65.6 million, or $2.34 per diluted share, while carrying $1,921 million in cash, equivalents and short-term investments. The company completed its acquisition of Renesas Electronics' timing business on July 1, adding more than 550 clocking products to its portfolio and a business that serves over 10,000 customers, generates close to 75% of its topline from the AI-Datacenter-Comms market, and is expected to bring in at least $300 million in revenue over the next 12 months. Mobley's bullish case also rests on Apple's increasing reliance on its internal cellular modems, which could help SiTime generate annual revenue in the high-$100 million range once Apple's entire product portfolio shifts away from Qualcomm modems. Risks include integration complexity from the Renesas deal, heavy concentration in AI datacenter communications, and added leverage and potential dilution from the convertible senior notes issued to fund the acquisition.

SiTime Corp reported fiscal second-quarter revenue of $157.4 million, a 127% increase year-over-year and 39% sequentially, driven by strong AI and data center demand. Gross margin reached 67.1%, up 8.9 percentage points from a year ago, while operating margin expanded to 34% from 10%. Net income surged 400% to $65.7 million, or $2.34 per diluted share. The Communications, Enterprise and Data Center segment, which accounted for $101.2 million of total revenue, grew 181% year-over-year. For the third quarter, SiTime guided revenue between $285 million and $295 million, including approximately $85 million from the newly acquired TPD business, with gross margin expected around 68% and non-GAAP earnings per share of $3.50 to $3.65.

SiTime Corporation guided third-quarter revenue of $285 million to $295 million following the early close of its acquisition of Renesas' timing business. CEO Rajesh Vashist called the second quarter truly exceptional, with revenue reaching $157.4 million and every business unit and region growing more than 50% year-over-year. The Communications, Enterprise and Data Center segment crossed $100 million in quarterly revenue, hitting $101.2 million. CFO Beth Howe said the combined outlook includes approximately $85 million from the newly acquired Timing Products Division, which serves 10,000 customers with 70% gross margins, while legacy SiTime revenue is expected to be $200 million to $210 million. The company also guided third-quarter gross margin around 68% and non-GAAP earnings per share of $3.50 to $3.65.

SiTime reported quarterly earnings of $2.34 per share, beating the Zacks Consensus Estimate of $1.93 per share by 21.24%. Revenue came in at $157.43 million, surpassing the consensus estimate by 8.51% and more than doubling the year-ago figure of $69.49 million. The company has now exceeded consensus EPS and revenue estimates in each of the last four quarters. Shares have gained about 65.1% year-to-date, outpacing the S&P 500's 13% advance. The current consensus estimate for the coming quarter stands at $2.09 per share on $162.31 million in revenues.

Artisan Small Cap Fund added SiTime Corporation as a new position in the second quarter of 2026, citing accelerating demand for AI infrastructure and margin expansion. The fund believes SiTime is well positioned to benefit from the shift from legacy quartz timing solutions to higher-performance MEMS timing devices, with AI infrastructure supporting sustained growth. Recent results significantly exceeded expectations, driven by stronger AI infrastructure demand and higher timing content per system, which fueled strong revenue growth and margin expansion. The fund sees multiple catalysts including higher speed networking, expanding inference workloads, and increasing product content. SiTime shares closed at $554.46 on July 24, 2026, with a market capitalization of $14.64 billion and a 52-week range of $186.49 to $901.81.

SiTime reported first-quarter 2026 revenues of $113.6 million, up 88% year over year, and guided for second-quarter revenues of $140 to $150 million. The company said inference infrastructure requires 2 to 4 times more timing content than training infrastructure, while GPU utilization in inference workloads is targeted to rise from 20-40% to 50-60%. Its Elite 2 Super TCXO family delivers up to 3 times better synchronization performance than the prior Elite generation, and advanced oscillators for faster optical modules carry higher prices than those used in 800G. Communications, enterprise and data center revenues reached $75.7 million, or 66.6% of total revenues, and first-quarter gross margin hit 64.5%, helped by a stronger mix in those segments. SiTime is also broadening its portfolio beyond oscillators, with its clocking portfolio gaining traction and the pending Renesas timing business acquisition expected to add complementary assets.

SiTime Corporation has finalized its acquisition of the timing business from Renesas, a move aimed at establishing the company as a premier provider of precision timing solutions. The deal increases SiTime's clocking portfolio tenfold and expands its reach in the AI data center market, with an anticipated revenue contribution of at least $300 million within the first year. The acquired business brings a 30-year legacy of specialized clocking products serving over 10,000 customers. SiTime expects the acquisition to accelerate its path to $1 billion in annual revenue and improve overall gross margins. As part of a strategic partnership, Renesas CEO Hidetoshi Shibata is expected to join SiTime's Board of Directors.

SiTime Corporation has completed its acquisition of Renesas Electronics Corporation’s timing business, a move the company says accelerates its path to one billion dollars in revenue. The acquired business brings a 30-year legacy of highly differentiated clocking products, serves over 10,000 customers, and has delivered sustained financial performance with approximately 70 percent gross margin. In the 12 months following the acquisition, the business is expected to generate at least 300 million dollars in revenue, with nearly 75 percent of that coming from the AI-Datacenter-Comms segment. SiTime CEO Rajesh Vashist stated the deal grows the company’s clocking portfolio by ten times and expands its presence in the high-growth AI datacenter market. Renesas CEO Hidetoshi Shibata is expected to join SiTime’s Board of Directors, and the companies will explore a strategic collaboration to integrate SiTime’s MEMS resonators into Renesas’ embedded computing products.

Brown Capital Management added SiTime Corporation to its Small Company Fund during the first quarter of 2026. The fund disclosed the new position in its quarterly investor letter, noting SiTime makes silicon-based timing components that replace quartz crystals in electronics. For fiscal 2025, SiTime reported total revenue of $362 million, up 61% year-over-year, with a GAAP EBIT margin of negative 21%, improved from negative 56.9% in 2024. The fund also highlighted SiTime's first-quarter 2026 revenue of $113.6 million, an 88% year-over-year increase. SiTime shares closed at $706.90 on June 23, 2026, with a market capitalization of $18.66 billion.