Penguin Solutions (PENG) Poised for Growth on Favorable Memory Market Trends

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the AI Stocks Shaping Wall Street’s Next Big Rally. On October 6, Stifel analyst Brian Chin raised the firm’s price target on the stock to $31 from $27 and kept a “Buy” rating on the shares. The firm remains constructive on the stock amid favorable conditions in the memory market.

According to the firm, fiscal Q4 results are anticipated to modestly exceed consensus estimates when the company reports earnings on Tuesday. Not only are memory market conditions favorable both in terms of demand and pricing, but these tailwinds are also likely to sustain into the calendar year end.

The company’s memory division, representing 32% of trailing twelve-month sales, is experiencing tailwinds. Moreover, its advanced computing division (49% of TTM sales) is projected to post sequential growth in the fourth quarter due to an improving order pipeline.

The firm projects 8% year-over-year revenue growth overall, which it deems potentially conservative considering favorable memory market conditions and invigorating trends across the broader AI cloud and enterprise markets.

Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI and HPC computing company engaged in the design and development of enterprise solutions worldwide.

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