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

Osterweis Capital Management, an investment management firm, released its Q2 2026 investor update for its "Osterweis Opportunity Fund". You can download a copy of the letter here. The fund returned 35.34% in the quarter, significantly outperforming the Russell 2000 Growth Index's 25.71% gain. Robust corporate profits, AI investment, easing oil-shock concerns, strong labor markets, and consumer spending drove the rally. Security selection played a key role in outperformance, especially in Technology, Industrials, Health Care, and Consumer Discretionary. Conversely, smaller sectors like Consumer Staples, Financials, and Real Estate lagged but had minimal impact overall. Looking ahead, while AI is expected to continue influencing economic growth and market performance, a potential consolidation phase for AI-related stocks is anticipated. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted SiTime Corporation (NASDAQ:SITM). SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems, which contributed to the fund's returns this quarter. On September 22, 2026, SiTime Corporation (NASDAQ:SITM) closed at $633.72 per share. Over the past month, SiTime Corporation (NASDAQ:SITM) returned 0.72%, and its shares are up 104.73% over the past year. SiTime Corporation (NASDAQ:SITM) has a market capitalization of $19.06 billion, and its stock has traded within a 52-week range of $243.68 to $901.81.

Osterweis Opportunity Fund stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q2 2026 investor letter:

"Our best performer within IT was SiTime Corporation (NASDAQ:SITM), which returned 114% in the quarter. The company is the leading pure-play precision timing semiconductor company, with increasing adoption in AI data centers and other applications like Apple's iPhone. The company reported 88% growth in its most recent quarter, reflecting broad-based acceleration in its Communications, Enterprise, and Data Center division. SiTime also acquired Renesas's timing business, furthering its target of 25-30% annual growth and 30%+ operating margins. We believe precision timing is an underappreciated part of AI infrastructure, and SiTime is the market leader."

SiTime Corporation (NASDAQ:SITM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 76 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the second quarter, compared to 54 in the previous quarter. While we acknowledge the potential of SiTime Corporation (NASDAQ:SITM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.