Penguin Options, Inc. (NASDAQ:PENG) is likely one of the AI Stocks In The Spotlight For Investors. On October 8, Rosenblatt lowered its value goal on the inventory to $30.00 from $36.00 whereas sustaining a “Purchase” ranking. The agency famous how Penguin’s fourth quarter fiscal 2025 income was barely beneath consensus, regardless of its Non-GAAP EPS exceeding forecasts.
The corporate’s administration guided for six% year-over-year income progress for fiscal 2026, which is lower than the ten% progress analysts had predicted.
Rosenblatt acknowledged how the decrease steerage consists of solely software program and providers income from Meta. That is baecause the corporate doesn’t but have clear visibility into new Meta {hardware} deployments, which is usually a timing situation associated to Meta’s ongoing RSC buildout and Penguin’s personal fiscal calendar.
With the addition of a tier-1 monetary establishment and a serious shopper merchandise firm, Penguin has more and more been diversifying its buyer base past hyperscalers. Its superior Computing phase reported 75% year-over-year income progress for fiscal 2025. In the meantime, its Built-in Reminiscence enterprise is anticipated to develop 10-20% year-over-year in fiscal 2026.
The agency believes that Penguin’s HPC/AI software program and providers have sturdy potential, significantly as enterprise AI adoption scales. For this reason it recommends traders to purchase PENG shares on the present weak point tied to Meta’s {hardware} order timing.
Penguin Options, Inc. (NASDAQ:PENG) is a number one AI and HPC computing firm engaged within the design and improvement of enterprise options worldwide.
Whereas we acknowledge the potential of PENG as an funding, we consider sure AI shares provide better upside potential and carry much less draw back threat. For those who’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.
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