Meta Timing Creates Buying Opportunity in Penguin Solutions (PENG), Analyst Says

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the AI Stocks In The Spotlight For Investors. On October 8, Rosenblatt lowered its price target on the stock to $30.00 from $36.00 while maintaining a “Buy” rating. The firm noted how Penguin’s fourth quarter fiscal 2025 revenue was slightly below consensus, despite its Non-GAAP EPS exceeding forecasts.

The company’s management guided for 6% year-over-year revenue growth for fiscal 2026, which is less than the 10% growth analysts had predicted.

Rosenblatt stated how the lower guidance includes only software and services revenue from Meta. This is baecause the company doesn’t yet have clear visibility into new Meta hardware deployments, which is mostly a timing issue related to Meta’s ongoing RSC buildout and Penguin’s own fiscal calendar.

With the addition of a tier-1 financial institution and a major consumer products company, Penguin has increasingly been diversifying its customer base beyond hyperscalers. Its advanced Computing segment reported 75% year-over-year revenue growth for fiscal 2025. Meanwhile, its Integrated Memory business is anticipated to grow 10-20% year-over-year in fiscal 2026.

The firm believes that Penguin’s HPC/AI software and services have strong potential, particularly as enterprise AI adoption scales. This is why it recommends investors to buy PENG shares on the current weakness tied to Meta’s hardware order timing.

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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