Penguin Solutions, Inc. (PENG)
Summary
Penguin Stock Jumps 143% YTD: Is There More Room for Growth?
PENG's 143% YTD surge is backed by accelerating AI infrastructure demand, a growing backlog and a valuation below its industry average.
Penguin Solutions: Strong AI Momentum With A Reasonable Valuation
Penguin Solutions offers attractive upside driven by rapid AI infrastructure and integrated memory segment growth, with Q3 revenue up 48% year-over-year. PENG raised its 2026 revenue growth forecast to 22% and expects adjusted EPS around $2.60, while trading at a discounted 18.95x forward P/E versus sector median. Despite strong top-line growth, shrinking gross margins (to 28.5%) and negative operating cash flow highlight risks from working-capital expansion and a hardware-heavy sales mix.
PENG's Backlog Keeps Growing: Is Revenue Visibility Improving?
Penguin Solutions' growing AI-driven backlog, predictable bookings-to-revenue cycle and stronger pipeline are improving revenue visibility into fiscal 2027.
Penguin Solutions, Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
 Curtis Ellergodt Rothschild Investment LLC | 55 | $1,029.41 | $2,592.81 | $1,563.4 | 151.87% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 33,516 | $2.28M | $1.58M | -$693,757.74 | -30.47% |
| BG Bart Gancher Intech Investment Management LLC | 22,802 | $1.06M | $1.33M | $272,719.36 | 25.73% |
| JM John Malone Amundi | 5,603 | $147,246.84 | $309,173.54 | $161,926.7 | 109.97% |
 Michelle Dubey Yousif Capital Management LLC | 12,768 | $335,543.04 | $600,189.21 | $264,646.17 | 78.87% |
Penguin Solutions, Inc. Analysts
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TO Tom O'Malley Barclays | -309.72 | $16,321.18 | $14,549.19 | $1,771.99 | 10.86% |
| MC Matthew Calitri Needham | 1,193.01 | $23,132.5 | $56,274.37 | $33,141.87 | 143.27% |
Penguin Solutions, Inc. (PENG) FAQ
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Penguin Solutions, Inc. Profile
| Automobile Components Industry | Consumer Discretionary Sector | Kash Shaikh CEO | NASDAQ (NGS) Exchange | 706915105 CUSIP |
| US Country | 2,900 Employees | - Last Dividend | 2 Feb 2022 Last Split | - IPO Date |
Overview
Penguin Solutions, Inc. is a comprehensive provider of enterprise solutions with a global footprint, specializing in advanced computing, integrated memory solutions, and optimized LED technologies. Founded in 1988 and headquartered in Grand Cayman, Cayman Islands, the company has evolved from its original identity as SMART Global Holdings, Inc. to its current brand name in October 2024. Penguin Solutions operates through three primary segments: Advanced Computing, Integrated Memory, and Optimized LED, catering to a diverse range of industries including networking and telecommunications, data analytics, artificial intelligence, machine learning applications, and more. The company prides itself on its ability to offer supply chain services, including procurement, logistics, and inventory management, alongside its proprietary hardware and software services. Through a direct sales force, e-commerce, and a network of distributors and resellers, Penguin Solutions delivers its products and services to OEMs, enterprise customers, and governmental entities worldwide.
Products and Services
- Advanced Computing
- Integrated Memory
- Optimized LED
- Penguin Edge
- Stratus
- Supply Chain Services
The Advanced Computing segment by Penguin Solutions encompasses Penguin Computing, which is dedicated to technical computing for core and cloud environments. It provides high-performance computing and artificial intelligence solutions, catering to the demands of computational science, engineering, and AI research fields.
In the Integrated Memory segment, the company offers a wide array of memory solutions including dynamic random access memory modules, solid-state and flash storage. These products are designed to support advanced applications in networking and telecom, data analytics, and AI machine learning, alongside offering supply chain services like programming, kitting, and packaging.
This segment includes LED chip products under the Cree LED brand, focusing on blue and green LED chips based on gallium nitride and other related materials. The products are available under the Cree LED XLamp and J Series brands, targeting applications in various sectors.
Penguin Edge offers edge computing solutions for embedded and wireless applications, delivering high-performance computing products for sectors such as government, healthcare, manufacturing, and telecommunications.
Stratus by Penguin Solutions provides simplified, protected, and autonomous fault-tolerant computing solutions. It encompasses both hardware and software services designed for data center and edge computing needs, ensuring reliability and uptime for critical applications.
The company extends its expertise to supply chain management, offering end-to-end services including procurement, logistics, inventory management, temporary warehousing, and more. This comprehensive service ensures efficient and timely delivery of Penguin Solutions' products and services to its customers.
