Forget the Hyperscalers: Fund Manager Flags 2 Lesser-Known AI Stocks Whose Earnings Surprises Show the AI
Fund manager Nelson told Business Insider he still sees strong fundamental momentum in AI infrastructure despite recent price pullbacks. The article highlights CTSIX holdings Sterling Infrastructure (STRL) and SiTime (SITM). STRL Q1 2026 EPS was $3.59 vs $2.17 estimate, with revenue up 39.8% to $825.68M. SITM Q1 2026 EPS was $1.44 vs $0.97 estimate.
How this was made
The 30-second read
Why it matters
For STRL and SITM, the actionable element is the quantified Q1 2026 earnings surprise and revenue/EPS growth, which can shift near-term valuation and momentum. CTSIX is discussed mainly as a portfolio context rather than receiving a new catalyst.
Market read
Quantified earnings beats for STRL and SITM provide fresh, tradable catalysts, while CTSIX is mainly sentiment/portfolio framing.
What to watch
No details are provided on forward guidance, backlog, gross margin trajectory, or customer concentration, which are often decisive after earnings beats.
Background
The piece is framed as a fund manager’s view that AI infrastructure fundamentals remain strong, spotlighting two holdings with earnings surprises.
Ticker impact
STRL reported Q1 2026 EPS $3.59 vs $2.17 estimate and revenue $825.68M, plus a 65.4% earnings beat and 39.8% revenue growth.
Moderately positive bias for STRL over days to weeks, assuming market digests the beat and guidance history.
The article provides specific, time-relevant earnings surprise figures and revenue growth, which are direct drivers of repricing.
SITM posted Q1 2026 EPS $1.44 vs $0.97 estimate, a 48.4% surprise, following a 155.9% EPS surprise in Q3 2025.
Positive near-term drift is plausible, though the article notes the stock closed down on the day.
The article includes concrete EPS surprise and a prior-quarter beat, but it also reports a same-day decline, implying the market may have priced expectations already.
Market effects
Supports the view that AI infrastructure supply-chain and enabling semiconductor timing tech can outperform even as hyperscaler narratives cool.
No specific regional macro linkage is provided.
Read-through is global for data center buildout and semiconductor demand, but the article is company-specific.
Counterpoint
The article highlights beats but also notes both STRL and SITM closed lower on Friday, suggesting expectations may already be elevated and the market may focus on forward guidance or margins not discussed here.
Key entities
- public_companySTRL
Sterling Infrastructure, highlighted for a Q1 2026 earnings and revenue beat plus a history of guidance raises.
- public_companySITM
SiTime, highlighted for a Q1 2026 EPS beat and a pattern of prior-quarter outperformance.
- public_companyCTSIX
CTSIX, referenced as the fund manager’s portfolio context with price performance and holdings weights.
