Why SiTime Stock Blasted Almost 27% Higher on Thursday

SiTime (SITM) surged nearly 27% Thursday after reporting second-quarter results that crushed expectations. The precision timing chip maker posted revenue of $157.4 million—more than double the prior-year quarter—and adjusted net income of $2.34 per share, quintupling year-over-year and beating analyst estimates.

The company's communications, enterprise, and data center segment drove the upside, growing 181% as AI infrastructure buildouts fueled demand for SiTime's timing solutions. Other segments expanded over 50%.

Management issued strong third-quarter guidance, projecting revenue between $285 million and $295 million with adjusted earnings per share of $3.50 to $3.65. The outlook reflects both organic momentum and contributions from SiTime's recent acquisition of timing products from Renesas.

The sequential revenue guidance implies roughly 80% growth at the midpoint from the second quarter, signaling accelerating traction in AI-related infrastructure spending.