SiTime Corporation (SITM) Positioned at the Heart of AI Hardware Expansion

Osterweis Capital Management's Q2 2026 investor update revealed SiTime Corporation (SITM) as their top-performing IT stock, with a remarkable 114% return in the quarter. The precision timing semiconductor company is at the forefront of AI data centers and other applications, such as Apple's iPhone. SiTime reported an impressive 88% growth in their most recent quarter, primarily driven by its Communications, Enterprise, and Data Center divisions.

The company's acquisition of Renesas' timing business further solidifies its position to achieve 25-30% annual growth and 30%+ operating margins. Although 76 hedge funds held SITM at the end of the second quarter, compared to 54 in the previous quarter, Osterweis Opportunity Fund believes there are AI stocks with greater upside potential and lower risk.