SiTime (SITM)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
$589.87-1.52%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-09
Intact: The reason to own it still holds.
SiTime grew revenue 88% year over year to $113.6 million. The Renesas deal should add $300 million revenue next year. Profit margins improved to 64.5% last quarter. Management is focused on growing and keeping profits strong.
SiTime is losing money and faces dilution from new notes. The recent selloff shows investor worries. The Renesas deal may not deliver expected growth. Profit margins could weaken with integration costs.
The price is about 8% below our fair value near $646. Analysts expect 65% revenue growth. Our fair value is 22% below the Street median, showing caution. The market prices in strong growth but also risks.
Breaks if: Dilution exceeds 10% or new notes raise serious concerns
Breaks if: gross margin falls below 60% over next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story, as SITM is currently navigating the integration of a recent acquisition while facing volatility in management and financial results. The current thesis state reflects a cautious outlook due to mixed execution and recent performance trends.
The market appears to have priced in a low level of fragility, with a justified valuation despite a premium compared to peers. There is a slight expectations gap, indicating that the market may not fully anticipate the challenges ahead.
Fundamentals are likely to remain neutral in the near term, as the company has shown some progress in margin expansion but continues to face high risk and recent declines in quality. The low probability of missing earnings suggests some stability, but the company's history of deep misses raises caution.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improvement. There are no new threats impacting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on improving non-GAAP gross margin and profitability while integrating acquisition.
Stated in 3 quarters from 2025-Q4 to 2026-Q2. Non-GAAP gross margin improved from 64.5% in 2026-Q1 to 67.1% in 2026-Q2, exceeding the target range of 60-65%. The acquired business has a 70% gross margin legacy. The trajectory shows delivering margin expansion and strong profitability.
“Non-GAAP gross margin was 67.1% of revenue in 2026-Q2.”
“Non-GAAP gross margin was 64.5% of revenue in 2026-Q1.”
“The acquired business has delivered sustained financial performance of approximately 70% gross margin.”
Breaks if: revenue from Renesas assets falls below $200 million in FY2027
Finalize and integrate Renesas' timing business to expand product portfolio and accelerate revenue growth.
Stated as a priority in 3 quarters from 2025-Q4 through 2026-Q2. Revenue grew from $69.5 million in 2025-Q2 to $157.4 million in 2026-Q2 (+127%). The acquisition completed on July 1, 2026, added over 550 products and is expected to generate at least $300 million revenue in 12 months post-close. The trajectory is delivering with strong revenue growth and successful closing.
“On July 1, we completed the acquisition of Renesas' Timing Business, adding over 550 clocking products to our portfolio.”
“SiTime announced the acquisition of certain assets related to Renesas' timing business, expected to close by end of 2026.”
“SiTime to acquire Renesas' timing business, expected to generate $300 million revenue in 12 months post-close.”
Breaks if: total revenue growth falls below 40% YoY in FY2027
Finalize and integrate Renesas' timing business to expand product portfolio and accelerate revenue growth.
Stated as a priority in 3 quarters from 2025-Q4 through 2026-Q2. Revenue grew from $69.5 million in 2025-Q2 to $157.4 million in 2026-Q2 (+127%). The acquisition completed on July 1, 2026, added over 550 products and is expected to generate at least $300 million revenue in 12 months post-close. The trajectory is delivering with strong revenue growth and successful closing.
“On July 1, we completed the acquisition of Renesas' Timing Business, adding over 550 clocking products to our portfolio.”
“SiTime announced the acquisition of certain assets related to Renesas' timing business, expected to close by end of 2026.”
“SiTime to acquire Renesas' timing business, expected to generate $300 million revenue in 12 months post-close.”
The thesis hinges on several key factors, including the successful integration of the Renesas acquisition, potential changes in Federal Reserve interest rates, and the performance of sector leaders like NVDA and TSM. Any negative guidance from management could significantly impact sentiment.
In the next 1-3 years, SITM's performance will depend on its ability to manage integration and navigate market conditions. Not investment advice.