Investing.com -- SiTime Corporation (NASDAQ:SITM) shares rallied 16% in Friday trading after Seaport Global Securities upgraded the precision timing specialist to Buy from Neutral with a $425 price target. The upgrade followed an indiscriminate sell-off across semiconductor names that pushed the stock down roughly 50% from its September 2026 peaks, presenting what the brokerage characterized as an attractive entry point.
Seaport analyst Jay Goldberg emphasized that the broader artificial intelligence infrastructure buildout remains intact despite recent market volatility that had weighed heavily on the shares. While noting operational risks tied to rapid growth and lingering supply constraints, Goldberg argued that SiTime's expanding competitive lead across data centers and strong execution provide an ample margin of safety at current valuation levels.
The positive inflection on Wall Street comes directly behind the Santa Clara-based chipmaker's blockbuster third-quarter financial release on Wednesday. SiTime posted adjusted earnings of $4.01 per share on revenue of $298.7 million, comfortably exceeding consensus estimates of $3.63 per share and $292.06 million as net sales surged 257% year over year.
Management attributed the performance to broad-based adoption across end markets alongside the integration of TPD, which pushed the company's annualized revenue run-rate above $1 billion. Chief Executive Rajesh Vashist highlighted that core CED revenue expanded 202% from the year-ago period, driven by sustained demand for specialized precision timing solutions within AI data center deployments.
The sharp Friday rebound also follows a wave of target-price recalibrations across Wall Street on Thursday, where firms trimmed aggressive targets while reiterating constructive stances. Needham lowered its target to $600 from $900, Stifel adjusted to $750 from $800, Morgan Stanley moved to $640 from $730, and UBS trimmed to $650 from $750, with all four institutions sustaining their bullish ratings against an improving demand backdrop.
Original Article
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