PENG Stock Heads For Best Single-Day Gains In 22 Months — Penguin Says AI-Driven Business Now Accounts For 60% Of H1 Revenue

• Integrated memory revenue rose 53% year-on-year to $308 million in H1 FY2026, accounting for roughly 45% of Penguin Solutions’ total revenue of $686 million during the period.
• Penguin Solutions stated that the next phase of AI will focus on inference rather than training.
• The company said its products are designed to help customers optimize token economics and scale inference workloads efficiently.

Shares of Penguin Solutions Inc. (PENG) were up more than 20% in Wednesday’s pre-market trade, on track for their best single-day gains in about 22 months.

The company stated on Tuesday that its AI-driven business accounted for more than 60% of total sales during the first half of fiscal year 2026, up more than 50% year over year.

PENG Banks On Agentic AI Boom

Penguin Solutions stated that the next phase of AI will focus on inference rather than training. The company said its products are designed to help customers optimize token economics and scale inference workloads efficiently.

Penguin stated that inference aligns with its expertise in building customized high-performance AI infrastructure tailored to specific customer workloads.

Integrated memory revenue rose 53% year-on-year to $308 million in H1 FY2026, accounting for roughly 45% of Penguin Solutions’ total revenue of $686 million during the period.

Rosenblatt Says PENG’s Expansion Plans Are Impressive

According to TheFly, Rosenblatt analysts said that Penguin Solutions CEO Kash Shaikh’s strategy to build on the company’s more than 40 years of memory-subsystem expertise is compelling.

The analysts added that the company is combining that foundation with AI software and services to deliver a full-stack platform solution.

Rosenblatt raised its price target for PENG stock to $54 from $32, while keeping a ‘Buy’ rating. The firm noted that the higher price target reflects rising demand for optimized memory subsystems in the AI market, as well as faster corporate adoption of internal AI systems driven by agentic AI.

PENG Says AI Moving From Pilots To Deployment

According to the firm, AI is now moving beyond pilots to full-on-premises deployments, and demand is broadening from hyperscalers to enterprises and sovereign customers. The demand for memory is increasing as AI workflows move into production at scale.

The company also highlighted that its integrated memory modules are built into the infrastructure platforms of industry leaders, which include Alphabet Inc.’s (GOOG, GOOGL) Google, Intel Corp. (INTC), and Juniper Networks, among others.

What Does PENG Do?

Penguin Solutions is a Fremont, California-based company that provides memory and AI infrastructure designed to support enterprises, sovereign AI projects, and neocloud providers.

The company offers a full-stack platform comprising hardware and software solutions to help customers deploy and scale AI workloads while optimizing their total cost of ownership.

How Did Retail Traders React To PENG?

Retail sentiment on Stocktwits around Penguin Solutions trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

PENG stock is up 126% year-to-date and 133% over the past 12 months. The iShares Russell 2000 ETF (IWM) is up 36% over the past 12 months, while the iShares Core S&P Small-Cap ETF (IJR) is up 26%.

Also See: Google, SpaceX Reportedly In Talks To Launch Data Centers In Orbit

For updates and corrections, email newsroom[at]stocktwits[dot]com.