SiTime reported triple-digit year-over-year revenue growth, driven largely by AI demand and the expanding data centre market, according to Chairman and CEO Rajesh Vashist. The company's timing synchronisation technology is critical for data centre components including TPUs, GPUs, switches, accelerator cards, optical modules, and cables. Vashist explained that the technology ensures high performance and cost efficiency across these systems. He discussed the company's growth trajectory and market position during an interview on Bloomberg's "The Close" programme.

SiTime's shares surged nearly 27% on Thursday following strong second-quarter results. The silicon timing components specialist reported revenue of $157.4 million, more than double the $69.5 million from the same quarter in 2025. The communications, enterprise, and data centre segment drove growth with 181% revenue increase, fuelled by artificial intelligence infrastructure build-outs. The automotive, industrial, and aerospace segment, along with consumer, mobile, and IoT, each grew over 50%. Adjusted net income quintupled to $65.6 million, or $2.34 per share, beating analyst expectations of $146.3 million in revenue and $1.96 per share. For the current quarter, SiTime projects revenue between $285 million and $295 million, with adjusted earnings of $3.50 to $3.65 per share, significantly exceeding third-quarter 2025 results.

Macom, SiTime jump as chip stocks stage comeback. Chip stocks rallied on Thursday, helped by positive earnings reports from Macom Technology Solutions (MTSI) and SiTime (SITM). The Philadelphia semiconductor index, known as SOX, fell as much as 2.5% in opening trades, before reversing higher. In recent trades on the stock market today, the SOX was up 1.2%. The SOX includes the 30 largest chip stocks traded in the U.S., including Macom. How To Trade Critical Moment For Market As Indexes Shoot Higher: Jim Roppel Hedge fund manager and Roppel Capital Management founder Jim Roppel shares his thoughts on the stock market's performance in July and analyzes top names on his watchlist with IBD's Alissa Coram. 0 seconds of 52 minutes, 12 secondsVolume 0% How To Trade: Critical Moment For Market As Indexes Shoot Higher, Says Jim Roppel See All Videos Macom stock jumped around 10% to 288.78 in midday trades on Thursday. Before the market opened, the Lowell, Mass.-based company reported quarterly results and guidance that beat expectations. Macom earned an adjusted $1.40 a share, up 56% year over year, on sales of $342.2 million, up 36%, in its fiscal third quarter ended July 3. Analysts polled by FactSet had expected earnings of $1.35 a share on sales of $335.5 million. For the current quarter, its fiscal Q4, Macom forecast adjusted earnings of $2 a share on sales of $420 million, based on the midpoint of its outlook. Wall Street had been modeling earnings of $1.48 a share on sales of $365 million. Macom makes chips for telecommunications, industrial, defense and data center applications. SiTime stock ticks higher. Elsewhere among chip stocks, SiTime stock rocketed more than 20% to 654.74. With the move higher, it cleared its 50-day moving average line, a positive technical indicator. The timing-chip maker late Wednesday crushed estimates with its second-quarter results and Q3 guidance. SiTime earned an adjusted $2.34 a share, up 398% year over year, on sales of $157.4 million, up 126%, in the June quarter. Analysts had been looking for earnings of $1.95 a share on sales of $146.5 million. For the current quarter, SiTime predicted adjusted earnings of $3.58 a share on sales of $290 million, based on the midpoint of its guidance. That would translate to year-over-year growth of 311% in earnings and 247% in revenue. Another big gainer among chip stocks on Thursday was Diodes (DIOD). The chipmaker reported second-quarter results late Wednesday. Diodes earned an adjusted 70 cents a share, up 119% year over year, on sales of $445.5 million, up 22%, in the June quarter. Wall Street had been modeling earnings of 63 cents a share on sales of $437 million. For the current quarter, Diodes sees adjusted earnings rising 184% year over year to $1.05 a share with sales up 30% to $510 million. In midday trades on Thursday, Diodes stock leaped nearly 18% to 100.89. Like SiTime, it cleared its 50-day line on Thursday. Chip stocks rally off 3-month low. Decliners among chip stocks on Thursday included memory-chip maker Sandisk (SNDK) and audio-chip maker Cirrus Logic (CRUS). The SOX index has rallied since hitting a three-month low on July 29. At that point, it was down 28.7% from its all-time high, reached on June 22. Despite rising 16.5% from its recent low, the SOX is trading below its 50-day moving average line. Macom and SiTime are on the IBD Tech Leaders stock list. Further, SiTime is on IBD's Leaderboard. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE: