Forget the Hyperscalers: Fund Manager Flags 2 Lesser-Known AI Stocks Whose Earnings Surprises Show the AI Trade Isn't Dead

As concerns around hyperscaler capital expenditure ripple through tech markets, beyond the giant megacap names, two lesser-known AI infrastructure stocks, Sterling Infrastructure Inc. (NASDAQ: STRL ) and SiTime Corp. (NASDAQ: SITM ), are dominating earnings expectations with multi-quarter streaks of double- and triple-digit EPS beats alongside frequent upward guidance revisions.

Riding Fundamental Momentum Brandon Nelson, a fund manager who manages the Calamos Timpani Small Cap Growth Fund Class (NASDAQ: CTSIX ) —up 47.16% over the last 12 months—rejects fears that the trade is dead, noting he sells when he sees fundamental fatigue. “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,” Nelson told Business Insider. “I’m not sure I’m there yet.

The fundamental momentum of most of those AI infrastructure names is still very strong.” CTSIX closed 2.37% lower on Friday, and it was down 8.65% over the last month and up 22.26% year-to-date.

Read Also: Two Years to Build or Pay 200% — Which US Pharma Stocks Win? Sterling Infrastructure Preparing land for data center construction, STRL is CTSIX’s third-largest holding, weighted at 3.18%.

The company’s stock has risen 161.57% over the past 12 months. “Someone’s got to clear the trees and make everything flat and build roads around what’s going to end up being a data center,” Nelson said. “These guys are the biggest company in the US that does this.” As per Pro earnings data validates his bullish stance: STRL posted a first quarter 2026 earnings surprise, delivering $3.59 EPS against a $2.17 estimate—a 65.4% beat—while revenue surged 39.8% to $825.68 million.

Between August 2022 and May 2026, STRL raised its guidance outlook 14 times. — STRL closed 7.86% lower on Friday at $660.94 per share, and it was down 23.79% over the last month and up 115.83% year-to-date.

SiTime Corp Manufacturing silicon timing semiconductor chips, SITM is CTSIX’s fourth-largest holding, weighted at 3.09%.

Shares of SiTime have gained 186.37% over the last 12 months. “Most electronic devices need this technology,” Nelson said. “They’ve got fast growth, and they’re really good at managing expectations, and these are huge markets.” Proprietary Pro data demonstrates SITM repeatedly crushing expectations.

In the first quarter of 2026, SITM reported an EPS of $1.44 versus $0.97 estimated, a 48.4% surprise, following a massive 155.9% EPS surprise in the third quarter of 2025.

SITM closed 3.81% lower on Friday at $554.46 per share, and it was down 19.93% over the last month and up 56.99% year-to-date.

Read Also: Stock Market: Will S&P 500 Open Up or Down Today? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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