Penguin Solutions Jumps 13% on AMD–Shell AI Data Center Deal and Higher 2026 Outlook

The move underscores Penguin’s shift toward enterprise AI infrastructure under closer scrutiny of its valuation.

Overview

Penguin Solutions shares climbed 13.47% after a Sunday announcement of a three‑way partnership with AMD and Shell to boost AI data center performance.
Management raised fiscal 2026 revenue growth guidance to 12% from 6%, citing stronger demand in its memory unit and a push into “AI factory” and inference-focused deployments.
Second‑quarter revenue came in at $343 million, edging past the $340.2 million consensus even as sales declined 6% from a year earlier.
Analyst views diverged, with Stifel keeping a Buy but cutting its target to $24, Citizens maintaining Market Outperform and lifting its target to $35, and Barclays shifting to Equalweight while raising its target to $27.
Technical buying followed a “golden cross” and heavy trading volume, while valuation questions persisted as shares traded near 55 times earnings and are up about 122% over 12 months.