Core Viewpoint - Penguin Solutions, Inc. is gaining attention as a notable AI stock, with a Buy rating reaffirmed by Rosenblatt analyst Kevin Cassidy, who set a price target of $30.00 based on better-than-expected revenue and earnings performance [1]. Revenue Growth - Penguin's Advanced Computing revenue increased by 52% year-over-year, excluding contributions from hyperscale (Meta) and discontinued Penguin Edge products, indicating strong growth potential as the company diversifies its enterprise customer base [2]. - Integrated Memory revenue also saw a significant growth of 41% year-over-year, with projections suggesting this segment will exceed $600 million in fiscal year 2026 [3]. Segment Performance - The LED segment has started to weaken, which is impacting overall gross margin performance; however, growth in the Advanced Computing and Integrated Memory segments remains a key reason for investment in Penguin Solutions stock [3].
Penguin Solutions’ (PENG) Growth Outlook Remains Intact, Rosenblatt Says