SiTime Corporation (SITM) AI Stock Analysis

• Market Cap: $10.65B
• Dividend Yield: N/A
• Average Volume (3M): 321.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.59
• Revenue Growth: 59.04%
• EPS Growth: 28.50%
• Country: US
• Employees: 395
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.53
• Shares Outstanding: 26,299,915
• 10 Day Avg. Volume: 259,148
• 30 Day Avg. Volume: 321,311
• PEG Ratio: 3.57
• Price to Book (P/B): 7.63
• Price to Sales (P/S): 26.99
• P/FCF Ratio: 251.04
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 33.63
• Enterprise Value/Gross Profit: 62.78
• Enterprise Value/Ebitda: -581.94
• 1Y Price Target: $442.50
• Price Target Upside: 9.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.21
• Revenue Forecast (FY): $443.57M

• Rating: 77 Outperform
• Price Target: $474.00 ▲(17.10% Upside)
• Action: Upgraded Date: 02/12/26
• Date: Action: Upgraded 02/12/26

The score is driven primarily by improving fundamentals (notably strong balance sheet quality and a 2025 cash-flow rebound) and constructive technical momentum. The latest earnings call adds meaningful support via strong guidance and margin expansion, partially offset by execution/financing risk tied to the Renesas timing acquisition. Valuation remains a notable drawback due to the negative P/E and lack of dividend support.

Positive Factors

Very strong balance sheet with minimal debt

Minimal leverage and a large equity base provide durable financial flexibility: the company can fund strategic investments, absorb cyclical semiconductor downturns, and pursue the Renesas asset purchase while limiting default risk. This conservatism supports long-term R&D and qualification cycles central to MEMS timing adoption.

Leading exposure to AI/Datacenter demand (CED outperformance)

Rapid, sustained CED share gains reflect structural secular demand from AI and hyperscale networking. High exposure to datacenter/cloud end markets creates durable, higher-volume design wins and longer platform lifecycles, supporting recurring unit shipments and stronger backlog visibility over multiple quarters to years.

Sustained healthy gross margins and margin expansion

High product-level gross margins reflect MEMS differentiation and favorable product mix toward CED and higher-value clock products. Durable margin expansion supports operating leverage, cash generation and the ability to fund qualification and customer support activities critical for long lifecycle electronics customers.

Negative Factors

GAAP profitability remains negative historically

Although margins improved, persistent GAAP net losses and negative returns on equity mean the large equity base has yet to deliver sustained earnings. This limits free distributable cash over time, pressures long-term ROE, and could constrain strategic flexibility if losses re-emerge during market slowdowns.

Acquisition financing and integration risk (Renesas timing)

The large asset purchase materially increases near-term leverage and introduces execution risk around integration of a carve-out business. Successful de-levering depends on rapid cash conversion and synergies; failure to integrate or slower revenue conversion could strain liquidity and raise financing costs for several quarters.

Working capital and inventory pressures during scaling

Rising DSO and material inventory signal timing and collection dynamics that can stress cash flow when the business scales rapidly or funds large M&A. If receivables and inventory persist at elevated levels, the company may need additional working-capital financing, complicating deleveraging and capital allocation after the acquisition.

SiTime Corporation Business Overview & Revenue Model

Company Description

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. Its solutions have applications in various markets, including communications and enterprise, automotive, industrial, Internet of Things, mobile, consumer, and aerospace and defense. The company sells its timing products through distributors and resellers. SiTime Corporation was incorporated in 2003 and is headquartered in Santa Clara, California.

How the Company Makes Money

SiTime generates revenue primarily through the sale of its silicon timing products, which are integrated into a variety of electronic devices and systems. The company’s key revenue streams include the direct sale of its oscillators and clock generators to original equipment manufacturers (OEMs) and other clients in different industries. Additionally, SiTime benefits from partnerships with major semiconductor firms and technology companies that incorporate its timing solutions into their products. The demand for more precise and reliable timing solutions in the expanding markets of 5G telecommunications, automotive electronics, and IoT devices significantly contributes to its earnings. SiTime also engages in research and development to innovate new products, ensuring a competitive edge in the market and potentially leading to new revenue opportunities.

SiTime Corporation Financial Statement Overview

Summary

Balance sheet strength is a standout (debt essentially eliminated and large equity base), and 2025 showed a sharp cash-flow rebound with positive operating cash flow and free cash flow. The key drag is profitability: despite healthier gross margins and narrowing losses, operating results and net income remain negative in recent years.

Income Statement

Revenue growth improved materially in 2025 (up ~16%) after a soft 2024 and a decline in 2023, signaling demand recovery. Gross margins remain healthy (low-to-mid 50% range in 2024–2025), but profitability is still the key issue: the company posted another net loss in 2025 with negative operating profitability, following large losses in 2023–2024. Overall, strong product-level economics are being outweighed by cost structure, though the loss narrowed significantly versus 2024.

Balance Sheet

The balance sheet is a major strength: total debt is essentially eliminated by 2025 (debt-to-equity at 0.0), with a very large equity base and assets supported primarily by equity rather than leverage. The main weakness is returns: return on equity remains negative in 2023–2025 due to net losses, indicating the capital base is not currently generating profits despite conservative financing.

Cash Flow

Cash generation improved sharply in 2025, with solid positive operating cash flow and positive free cash flow, reversing the free-cash-flow deficit seen in 2023–2024. Cash flow also compares favorably to earnings in 2025, reflecting better cash conversion despite reported losses. The key watch item is consistency: operating cash flow was relatively weak in 2023–2024 before the strong 2025 rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	326.66M	202.70M	143.99M	283.61M	218.81M
Gross Profit	174.99M	104.49M	82.09M	182.96M	139.46M
EBITDA	-42.30M	-74.45M	-83.34M	27.98M	40.77M
Net Income	-42.90M	-93.60M	-80.53M	23.25M	32.28M
Balance Sheet
Total Assets	1.29B	884.96M	951.68M	750.62M	678.21M
Cash, Cash Equivalents and Short-Term Investments	808.41M	418.83M	528.20M	564.10M	559.46M
Total Debt	4.74M	6.23M	8.02M	10.63M	7.73M
Total Liabilities	138.52M	185.24M	243.63M	42.14M	45.71M
Stockholders Equity	1.16B	699.72M	708.05M	708.48M	632.50M
Cash Flow
Free Cash Flow	35.13M	-13.03M	-4.19M	4.10M	25.29M
Operating Cash Flow	87.15M	23.19M	8.06M	39.75M	59.08M
Investing Cash Flow	-427.87M	64.76M	-36.66M	-560.09M	-33.79M
Financing Cash Flow	351.37M	-91.31M	3.47M	-4.52M	460.65M

SiTime Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 404.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITM, the sentiment is Positive. The current price of 404.79 is above the 20-day moving average (MA) of 397.53, above the 50-day MA of 374.11, and above the 200-day MA of 280.58, indicating a bullish trend. The MACD of 12.71 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 31.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SITM.

SiTime Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SITM	77 Outperform	$10.65B	―	-4.62%	―	59.04%	28.50%
CAMT	72 Outperform	$7.50B	182.34	8.70%	―	21.12%	-54.97%
OLED	70 Outperform	$5.01B	20.97	14.32%	1.52%	-0.58%	-6.67%
SMTC	69 Neutral	$8.34B	302.96	13.39%	―	20.60%	―
SLAB	67 Neutral	$6.73B	-102.58	-5.97%	―	47.10%	64.29%
ALGM	66 Neutral	$7.23B	-525.79	-1.39%	―	-7.23%	-15.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SiTime Corporation Corporate Events

SiTime to Acquire Renesas Timing Business in Major Deal

On February 4, 2026, SiTime agreed to acquire Renesas’ timing business for $1.5 billion in cash plus about 4.13 million shares, gaining a portfolio of clocking products, long-standing hyperscale and automotive customers, and a business projected to generate $300 million in its first post-close year with 70% gross margins. The deal, backed by $900 million of committed bridge financing and capped by a closing deadline at the end of 2026, is expected to accelerate SiTime’s path to $1 billion in revenue, expand its reach in AI datacenter and communications markets, and become accretive to non-GAAP EPS within a year, while a new partnership MOU explores integrating SiTime’s MEMS resonators into Renesas’ embedded computing lineup.

The most recent analyst rating on (SITM) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on SiTime Corporation stock, see the SITM Stock Forecast page.

SiTime Appoints AI-Focused Director to Expanded Board

On January 21, 2026, SiTime Corporation expanded its Board of Directors to nine members and appointed semiconductor veteran Faraj Aalaei as a Class II director and member of the Compensation and Talent Committee, with his term running until the 2027 annual shareholders’ meeting and standard independent-director compensation and indemnification arrangements in place. Aalaei, founder, chairman and CEO of AI software firm Cognichip and former CEO of Aquantia and Centillium, brings deep experience in AI, networking and communications that SiTime’s leadership said aligns with its fastest-growing communications, enterprise and data center segment, which has posted more than 100% year-over-year growth for six consecutive quarters, underscoring the company’s efforts to solidify its position as a key timing solutions provider for rapidly scaling AI and data-center workloads.

The most recent analyst rating on (SITM) stock is a Hold with a $360.00 price target. To see the full list of analyst forecasts on SiTime Corporation stock, see the SITM Stock Forecast page.