SiTime Corporation (SITM) Rallied More Than 90% in 2025

Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund focuses on long-term, competitively positioned companies that are well-managed and have significant potential in untapped markets. The letter also addressed the advancements in AI and how humans define themselves in the changing landscape. In Q4, the fund generated a return of 0.19% (Institutional Shares), underperforming the Russell 2000 Growth Index by 1.03 percentage points. Over the entire year, the fund posted a return of 10.96%, while the Index returned 13.01%. The outperformance of low-quality and short-term price momentum-oriented stocks affected the Fund’s focus on long-term valuation metrics. The top 10 holdings comprised 26.7% of the Fund’s net assets, with cash making up 3.3%. The Fund maintains strong optimism and expects a high-growth, low-inflation environment in 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Baron Discovery Fund highlighted 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 2.55%, and its shares gained 57.62% of their value over the last 52 weeks. On February 3, 2026, SiTime Corporation (NASDAQ:SITM) stock closed at $351.47 per share, with a market capitalization of $9.174 billion.

Baron Discovery Fund stated the following regarding SiTime Corporation (NASDAQ:SITM) in its fourth quarter 2025 investor letter:

“We purchased SiTime Corporation (NASDAQ:SITM) in the first quarter at average prices of $178.63 when it was down 17% (general concerns about the semiconductor sector) – shares finished the year at over $353. In each case, we “anti-momentum” bought on conviction based on our in-depth fundamental research.”

Is SiTime Corp. (SITM) the Best Mid-Cap Growth Stock to Buy According to Analysts?

SiTime Corporation (NASDAQ:SITM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the third quarter, compared to 37 in the previous quarter.While we acknowledge the risk and potential of SiTime Corporation (NASDAQ:SITM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SiTime Corporation (NASDAQ:SITM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered SiTime Corporation (NASDAQ:SITM) and shared the list of best NASDAQ growth stocks to buy for the next 10 years. In addition, please check out our hedge fund investor letters Q4 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.