SiTime (SITM) 2026 Evercore Global TMT Conference summary

AI and data center growth

• AI and data center applications represent the vast majority of the Communications, Enterprise, and Data Center (CED) segment, which accounts for 50%-60% of annual revenue and is growing faster than other categories.

• Eight consecutive quarters of triple-digit growth have been observed in applications like transceivers, optical cables, compute, switching, and NICs.

• Strong shipments of oscillators at 400 Gb, 800 Gb, and leading in 1.6 Tb are expected to continue through 2025 and ramp further in 2026, supported by customer forecasts.

• Average selling prices (ASPs) increase 20%-40% with each new generation and higher performance requirements.

Supply chain and risk management

• Maintains strong relationships with key suppliers such as TSMC and Bosch, ensuring supply through long-term planning and collaboration.

• Uses longer-term purchase orders and may share CapEx with suppliers to secure capacity, especially for back-end processes.

• Operates at 55 nm and 180 nm geometries, allowing for more flexible inventory management and resilience.

• Keeps healthy wafer inventory to meet customer demand and mitigate supply risks.

• Lead times remain stable, with the ability to shorten them when needed due to product programmability.

Market opportunities and diversification

• Aerospace and defense, especially low Earth orbit satellites, present significant opportunities, with up to $2,000 of timing content per satellite and thousands of satellites expected to launch in the coming years.

• Military applications benefit from products like Epoch OCXO, which provide holdover capabilities for GPS-denied environments.

• Consumer market growth is driven by design wins with major customers transitioning to internally developed technology, leading to share gains.

• Physical AI, including robotics and autonomous systems, is an emerging opportunity requiring precision timing.