SANTA CLARA, California, May 7, 2026, 15:02 PDT
- SiTime jumped 27.9% at the close, with first-quarter revenue surging 88% to $113.6 million.
- The chip supplier bumped up its 2026 revenue-growth target to a minimum of 80% as AI data-center demand gives it a lift.
- The rally sharpens attention on valuation and competition, along with questions about how much further AI-driven demand can really scale.
Shares of SiTime Corporation skyrocketed Thursday, with the Santa Clara chipmaker posting a big first-quarter revenue gain and boosting its full-year forecast. That was enough to catapult this niche timing component supplier into the top ranks among AI infrastructure stocks for the session. The stock finished up 27.9% at $797.31, logging a fresh intraday record, according to Investor’s Business Daily.
This shift is significant: AI investment isn’t just about GPUs and RAM anymore. SiTime, which makes precision timing devices—think the tech that keeps chips, servers, and data links in sync—reports rising demand as AI workloads ramp up data flow and real-time operations.
CED — SiTime’s communications, enterprise and data center division — turned in the standout performance for the quarter. On the earnings call, the company reported CED revenue at $75.7 million, accounting for 66.6% of the total and surging 158% year over year, fueled by rising AI infrastructure demand tied to optical modules, switches, SmartNICs, and accelerator platforms.
SiTime’s first-quarter revenue jumped to $113.6 million, marking an 88.3% increase from $60.3 million the previous year. Despite that surge, the company recorded a GAAP net loss of $5.2 million, or 20 cents per diluted share. On a non-GAAP basis—which strips out stock-based comp and acquisition charges—net income landed at $38.9 million, translating to $1.44 per diluted share.
“Precision timing is becoming a system-level requirement,” Chief Executive Rajesh Vashist said in the company’s release, pointing to the rise of AI infrastructure and high-performance systems. During the call, Vashist noted that inference infrastructure — which runs trained AI models — can demand two to four times more timing content per system compared to training infrastructure. GlobeNewswire Investing.com
The company bumped up its forecast. SiTime is now projecting full-year revenue growth of no less than 80%, not counting any impact from the still-pending Renesas timing business deal. Looking ahead to the June quarter, SiTime sees revenue between $140 million and $150 million, with non-GAAP EPS in a range of $1.85 to $2.00.
Analysts wasted no time reacting. Needham’s N. Quinn Bolton bumped his SiTime price target up to $850 from $450, citing signs the company was “gaining new customers” and seeing more business from current ones, according to Barron’s. UBS’s Timothy Arcuri lifted his own target to $775 from $675, calling SiTime’s valuation “increasingly reasonable” as estimates climbed. Barron’s
Competition is in flux. SiTime struck a deal earlier this year to acquire timing assets from Renesas Electronics, a transaction valued at up to $3.2 billion. CEO Vashist told Reuters that SiTime’s technology might ultimately be used in billions of Renesas chips, but he cautioned that any related revenue is still years away.
SiTime’s latest annual report flags a tough timing market, with rivals including Renesas, Texas Instruments and Microchip Technology. That’s especially relevant after Thursday’s rally. Higher average selling prices gave this quarter a lift, though the company has cautioned that competition brings risks — price pressure, slimmer gross margins, and potential hits to market share.
There are some restrictions in play. CFO Beth Howe flagged to analysts that consumer products might make up a bigger slice of the sales mix later this year—a shift that could “modulate” gross margins, even with strong CED. The company also reminded investors that customer orders are subject to change or cancellation with minimal notice. Investing.com SEC
Right now, investors view SiTime as benefitting indirectly from the AI data-center surge. The real question—can the company translate that burst of AI-related demand into lasting revenue growth, all while holding the line on margins as both rivals and big clients ramp up the pressure?
