SiTime Corp's stock surged 28.10% during pre-market trading on Thursday, following the release of stronger-than-expected first-quarter financial results and the announcement of a strategic acquisition.

The precision timing chipmaker reported Q1 revenue of $113.57 million, beating analyst estimates of $103.39 million by 9.85% and representing an 88.3% year-over-year increase. Adjusted earnings per share came in at $1.44, significantly surpassing the $1.16 consensus estimate. Company executives attributed the strong performance to rising demand for precision timing solutions in AI infrastructure and high-performance systems, with differentiated platforms driving higher average selling prices and margins.

Additionally, the company announced the acquisition of Renesas Electronics' clock business, creating a dual catalyst for the stock's pre-market rally. This strategic move further consolidates SiTime's position in the precision timing chip market and strengthens its competitive advantage in semiconductor timing solutions, particularly for high-growth AI infrastructure applications.