Penguin Solutions Target Trimmed to $30 by Rosenblatt, Long-Term AI Outlook Still Intact

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the small-cap tech stocks hedge funds were buying in Q2.

On October 1, 2025, Rosenblatt Securities reiterated its Buy rating on Penguin Solutions and raised its 12-month price target from $27 to $36. A week later, on October 8, the firm maintained its Buy rating but revised the price target downward to $30. According to reports, Rosenblatt’s valuation update reflected shifting expectations around memory pricing trends and near-term hardware order timing from major customers such as Meta Platforms.

The analyst reportedly sees strength in memory demand and continues to view Penguin's positioning in enterprise AI infrastructure as a long-term growth lever. On October 14, Rosenblatt reaffirmed its Buy rating with the revised $30 target.

Penguin Solutions, Inc. (NASDAQ:PENG) is a California-based technology company providing high-performance computing and AI infrastructure solutions across enterprise, cloud, and government sectors.

While we acknowledge the potential of PENG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.