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]

Core Insights - Penguin Solutions Inc (NASDAQ:PENG) has guided for a 6% revenue growth for fiscal 2026, which is below the market expectations of 10% [1] - The company's revenue for the last quarter grew by 17% to $1.37 billion, aligning with its guidance, although it fell slightly short of consensus estimates [2] - The revenue guidance for fiscal 2026 is based solely on software and services revenue from Meta Platforms Inc (NASDAQ:META), with expectations that hardware deployments will resume during fiscal 2026 [3] Revenue and Growth - The revenue growth of 17% to $1.37 billion is consistent with the company's guidance [2] - The anticipated revenue growth for fiscal 2026 is lower than expected, indicating potential challenges in hardware deployments from Meta [1] Market Position and Strategy - Penguin Solutions has been successful in adding more enterprise customers, which is seen as a positive indicator for future growth [4] - The company is viewed as having significant value in its HPC/AI software and services, particularly as enterprise AI adoption increases [4]