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.

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

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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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PENG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.