Rosenblatt names top semiconductor stock

Rosenblatt has identified SiTime Corporation as its top pick in the semiconductor sector, assigning a Buy rating with a $900 price target on shares currently trading at $403.27. The precision-timing chip maker has demonstrated exceptional growth momentum, with the firm raising its earnings estimates substantially based on better-than-expected gross margin performance.

The semiconductor company’s recent quarterly results showed revenue slightly below Rosenblatt’s preview but ahead of consensus estimates, while gross margins exceeded expectations and drove earnings per share above forecasts. The firm has increased its fiscal 2027 and fiscal 2028 non-GAAP EPS estimates to $19.03 and $24.01, respectively, representing increases of 27% and 26% from prior projections of $15.04 and $19.03.

SiTime Corporation (SITM)

Rosenblatt maintains a Buy rating with a $900 price target, based on 37 times the firm’s fiscal 2028 non-GAAP EPS estimate of $24.01. The company has delivered exceptional revenue growth exceeding 100% year-over-year for the past six quarters, with September organic revenue and non-GAAP EPS growing 154% and 360% year-over-year, respectively. SiTime combines proprietary MEMS technology with deeply embedded customer relationships and often single-sourced designs, supporting premium pricing and approximately 70% gross margins.

The company’s design-in funnel has quadrupled since 2025 to $10 billion, spanning faster optical interconnects, AI compute, automotive, and aerospace/defense applications. Rosenblatt expects revenue to grow 60% next year, with incremental gross and operating margins of 72% and 49%, respectively. The firm notes that higher volumes and a richer product mix have driven margin expansion without broad price increases. Despite recent strong performance, shares entered the latest earnings report approximately 55% below their 52-week high at roughly 21 times Rosenblatt’s fiscal 2027 EPS estimate. SiTime remains Rosenblatt’s Top Pick in the semiconductor sector.