SiTime Corp. (SITM) Rose on Improved Guidance and Quarterly Results

Brown Advisory, an investment management company, released its "Brown Advisory Small-Cap Growth Strategy" second-quarter 2025 investor letter. During the first half of the year, the Brown Advisory Small-Cap Growth Strategy delivered results consistent with its historical performance. A copy of the letter can be downloaded here. In the first quarter of 2025, the portfolio remained robust, outperforming the declines of -9.5% for the Russell 2000 Index and -11.1% for the Russell 2000 Growth Index. However, in the second quarter, unprofitable companies within the Russell 2000 Index outperformed profitable ones, reversing a previous quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Small-Cap Growth Strategy highlighted stocks such as SiTime Corporation (NASDAQ:SITM). SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems. The one-month return of SiTime Corporation (NASDAQ:SITM) was 12.92%, and its shares gained 67.12% of their value over the last 52 weeks. On September 03, 2025, SiTime Corporation (NASDAQ:SITM) stock closed at $224.49 per share, with a market capitalization of $5.838 billion.

Brown Advisory Small-Cap Growth Strategy stated the following regarding SiTime Corporation (NASDAQ:SITM) in its second quarter 2025 investor letter:

"SiTime Corporation (NASDAQ:SITM): Develops and manufactures analog semiconductors. SiTime Corp. (SITM) rallied strongly on improved first quarter results and guidance was solid as its Compute/Data Center end market is benefitting from growth in key AI platforms. Additionally, SITM confirmed content wins on the iPhone, which will buoy revenue gains the next few years."

SiTime Corporation (NASDAQ:SITM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the second quarter, which was 29 in the previous quarter. SiTime Corporation (NASDAQ:SITM) delivered revenue of $69.5 million in the second quarter of 2025, representing a 58% year-over- year increase. 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.

In another article, we covered SiTime Corporation (NASDAQ:SITM) and shared the list of stocks discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.