SiTime Corporation (SITM) Surged on Strong AI data center demand

Carillon Tower Advisers, an investment management company, revealed that SiTime Corporation (NASDAQ:SITM) played a significant role in the strong performance of the Carillon Eagle Small Cap Growth Fund during the second quarter of 2026. The fund's portfolio consisted of small-cap stocks that surged broadly, with the Russell 2000 Growth Index (+25.71%) outperforming the Value index (+17.24%).

Information Technology (+46.79%) led all sectors, alongside Real Estate (+25.91%), Industrials (+25.80%), and Health Care (+25.54%). However, Consumer and defensive sectors, as well as Energy (-2.40%), experienced declines.

SiTime Corporation (NASDAQ:SITM), a provider of precision timing semiconductors, contributed 1.68% to the fund's returns that quarter. On September 18, 2026, the company's stock closed at $614.27 per share. Over the past month, SiTime Corporation's shares returned 5.73%, and its stock has increased by 102.14% over the past year. The company has a market capitalization of $18.40 billion, with share prices fluctuating between $243.68 and $901.81 over the past 52 weeks.

In its Q2 2026 investor letter, Carillon Eagle Small Cap Growth Fund noted that SiTime Corporation delivered earnings results that exceeded expectations. This surge was primarily fueled by strong demand for AI data center infrastructure, including AI-processing semiconductors, optical components, network switches, and servers. To bolster its competitive edge, SiTime announced plans to acquire the precision timing business of a rival, thereby expanding its scale and gaining access to a new customer base for cross-selling its products.

Despite acknowledging SiTime Corporation's potential as an investment, Carillon Eagle Small Cap Growth Fund suggested that certain AI stocks might offer greater upside potential with less downside risk. Among the fund's holdings, SiTime Corporation (NASDAQ:SITM) was not among the top 40 most popular stocks among hedge funds. While 76 hedge fund portfolios held the company's stock at the end of the second quarter, this number was up from 54 in the previous quarter.

The fund believes that other AI stocks could provide more significant growth opportunities, especially considering recent AI stocks' benefits from Trump-era tariffs and the trend of companies bringing manufacturing back to the U.S.