Key Takeaways:
Sterling Infrastructure Inc. and SiTime Corp., two mid-cap AI infrastructure suppliers held by the Calamos Timpani Small Cap Growth Fund, have delivered multi-quarter streaks of double- and triple-digit earnings beats that challenge the narrative of a slowing AI trade.
"We've seen the price momentum pull back, and there's a lot of doomers out there that think that's the beginning of the end," Brandon Nelson, fund manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), said. "I'm not sure I'm there yet. The fundamental momentum of most of those AI infrastructure names is still very strong."
Sterling Infrastructure (STRL), which prepares land for data center construction, posted first-quarter 2026 earnings per share of $3.59 against a $2.17 consensus estimate — a 65.4 percent beat — while revenue surged 39.8 percent to $825.68 million. The company raised its guidance outlook 14 times between August 2022 and May 2026, according to Benzinga Pro data. Shares have gained 161.57 percent over the past 12 months despite a 23.79 percent pullback in the last month.
SiTime Corp. (SITM), a manufacturer of silicon timing semiconductors used in electronic devices, reported Q1 2026 EPS of $1.44 versus $0.97 estimated, a 48.4 percent surprise, following a 155.9 percent EPS beat in the third quarter of 2025. The stock has risen 186.37 percent over the past year. "They've got fast growth, and they're really good at managing expectations, and these are huge markets," Nelson said.
STRL is CTSIX's third-largest holding at a 3.18 percent weight, and SITM is the fourth-largest at 3.09 percent. The fund has returned 47.16 percent over the last 12 months and is up 22.26 percent year to date, outperforming the broader small-cap index.
The earnings momentum at both companies suggests the AI infrastructure buildout is broadening beyond the hyperscaler names that have dominated the trade. Nelson said he sells positions only when he sees fundamental fatigue, which he has not observed in either holding. Investors will watch the next quarterly reports from STRL and SITM for continued guidance revisions, which have been the primary catalyst driving both stocks higher.
This article is for informational purposes only and does not constitute investment advice.
