Core Insights - Penguin Solutions, Inc. has been highlighted as a notable AI stock, with Rosenblatt lowering its price target from $36.00 to $30.00 while maintaining a "Buy" rating, citing slightly below consensus revenue for Q4 fiscal 2025 despite exceeding Non-GAAP EPS forecasts [1] - The company anticipates a 6% year-over-year revenue growth for fiscal 2026, which is lower than the 10% growth predicted by analysts [1] Revenue Guidance - The lowered guidance primarily reflects only software and services revenue from Meta, due to a lack of visibility into new Meta hardware deployments, which is attributed to timing issues related to Meta's RSC buildout and Penguin's fiscal calendar [2] Customer Diversification - Penguin has diversified its customer base by adding a tier-1 financial institution and a major consumer products company, moving beyond hyperscalers [3] - The advanced Computing segment reported a significant 75% year-over-year revenue growth for fiscal 2025, while the Integrated Memory business is expected to grow by 10-20% year-over-year in fiscal 2026 [3] Investment Potential - The firm believes that Penguin's HPC/AI software and services have strong potential, especially as enterprise AI adoption increases, recommending investors to buy PENG shares amid current weaknesses related to Meta's hardware order timing [4]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Penguin Solutions Inc (NASDAQ:PENG) guided to 6% revenue growth for fiscal 2026, below Street expectations of 10%, with limited near-term visibility into new hardware deployments for Meta Platforms Inc (NASDAQ:META), according to Rosenblatt Securities. The Penguin Solutions Analyst: Analyst Kevin Cassidy reiterated a Buy rating, while lowering the price target from $36 to $30. The Penguin Solutions Thesis: T ...