11 Small-Cap Tech Stocks Hedge Funds Were Buying in Q2

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3. Penguin Solutions, Inc. (NASDAQ:PENG)

Number of Hedge Fund Holders: 25

Percentage Change Since Q2: 15%

Market Cap: $1.2 Billion

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.

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