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Penguin Solutions, Inc. (PENG)



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Upturn Advisory Summary
08/14/2025: PENG (3-star) is a STRONG-BUY. BUY since 64 days. Profits (23.82%). Updated daily EoD!
Analysis of Past Performance
Type Stock | Historic Profit 90.67% | Avg. Invested days 54 | Today’s Advisory Regular Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 830.23M USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) - | Beta 1.67 | 52 Weeks Range 14.20 - 29.81 | Updated Date 06/7/2025 |
52 Weeks Range 14.20 - 29.81 | Updated Date 06/7/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.85 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -4.48% | Operating Margin (TTM) 3.1% |
Management Effectiveness
Return on Assets (TTM) 0.86% | Return on Equity (TTM) -13.3% |
Valuation
Trailing PE - | Forward PE 9.5 | Enterprise Value 1182978810 | Price to Sales(TTM) 0.71 |
Enterprise Value 1182978810 | Price to Sales(TTM) 0.71 | ||
Enterprise Value to Revenue 1.01 | Enterprise Value to EBITDA 18.8 | Shares Outstanding 52914800 | Shares Floating 51435352 |
Shares Outstanding 52914800 | Shares Floating 51435352 | ||
Percent Insiders 2.46 | Percent Institutions 108.09 |
Upturn AI SWOT
Penguin Solutions, Inc.
Company Overview
History and Background
Penguin Solutions, Inc. (formerly Penguin Computing) was founded in 1998. It started as a Linux-based server provider and has evolved into a provider of high-performance computing (HPC), artificial intelligence (AI), and cloud solutions. Key milestones include expanding into cloud services and strategic acquisitions to broaden its product portfolio.
Core Business Areas
- HPC Solutions: Offers high-performance computing servers, storage, and networking solutions for scientific research, engineering simulations, and data analytics.
- AI Solutions: Provides AI-optimized hardware and software platforms for machine learning, deep learning, and data science applications.
- Cloud Solutions: Delivers cloud-based HPC and AI services, including managed infrastructure, software platforms, and consulting services.
- Advanced Computing: Custom engineered systems tailored to meet the most stringent requirements.
Leadership and Structure
The company is led by a CEO and a team of executives responsible for various functions, including sales, marketing, engineering, and operations. The organizational structure is typically functional, with departments focused on product development, sales, and customer support.
Top Products and Market Share
Key Offerings
- Relion Servers: Rackmount servers designed for HPC and AI workloads. They compete with Dell EMC, HPE, and Lenovo. Market share data is not publicly available as a discrete offering, but penguin solutions is a major contributor in the HPC area. Revenues are dependent on contracts.
- TrueHPC Cloud: A cloud platform for HPC and AI applications, offering infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions. Competitors include AWS, Azure, and Google Cloud. Market share is difficult to ascertain due to proprietary services.
- Scorpio Storage: High-performance storage solutions optimized for data-intensive workloads. Competitors include DDN, IBM, and NetApp. Again, specific data isn't easily assessable.
Market Dynamics
Industry Overview
The HPC and AI infrastructure market is experiencing rapid growth, driven by increasing demand for compute-intensive applications in scientific research, engineering, and enterprise data analytics. The cloud computing market is also expanding, with enterprises increasingly adopting cloud-based HPC and AI services.
Positioning
Penguin Solutions is positioned as a provider of customized HPC and AI solutions, focusing on performance, scalability, and energy efficiency. They differentiate themselves through their expertise in Linux-based systems and their ability to tailor solutions to specific customer requirements.
Total Addressable Market (TAM)
The TAM for HPC and AI infrastructure is expected to reach hundreds of billions of dollars in the coming years. Penguin Solutions is well-positioned to capture a significant share of this market through its focus on customized solutions and strategic partnerships.
Upturn SWOT Analysis
Strengths
- Strong expertise in Linux-based HPC and AI systems
- Customized solutions tailored to specific customer requirements
- Focus on performance, scalability, and energy efficiency
- Strong relationships with technology partners
Weaknesses
- Smaller scale compared to larger competitors
- Limited brand recognition in some market segments
- Dependence on key suppliers for certain components
Opportunities
- Growing demand for HPC and AI infrastructure
- Expansion of cloud-based HPC and AI services
- Strategic partnerships with other technology providers
- Increasing adoption of AI in various industries
Threats
- Intense competition from larger players
- Rapid technological advancements
- Economic downturns
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- HPE (HPE)
- Dell Technologies (DELL)
- Lenovo (LNVGY)
Competitive Landscape
Penguin Solutions competes with larger vendors by offering customized solutions and focusing on specific market niches. Their strength lies in their Linux expertise and ability to tailor solutions.
Major Acquisitions
Edge Solutions
- Year: 2021
- Acquisition Price (USD millions): 32
- Strategic Rationale: Expanded Penguin Solutions' high-performance computing capabilities and customer base.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends require access to financial data, which is not available.
Future Projections: Future projections require analyst estimates, which are not readily available.
Recent Initiatives: Recent strategic initiatives include expanding cloud offerings, partnering with AI software vendors, and developing new HPC server platforms.
Summary
Penguin Solutions is a specialized provider in the HPC and AI solutions market, demonstrating a focus on Linux-based systems and custom-engineered solutions. Its strengths lie in its expertise and tailored approach, yet it faces challenges from larger, more established competitors. The company benefits from the increasing demand for HPC and AI infrastructure. Future growth depends on strategic partnerships and successful expansion into cloud services.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Industry Reports
- Analyst Reports (where available)
Disclaimers:
The information provided is based on available public data and represents an analysis based on general market knowledge and available research. Financial figures are estimates. Actual performance may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Penguin Solutions, Inc.
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2017-05-24 | President, CEO & Director Mr. Mark W. Adams | ||
Sector Technology | Industry Information Technology Services | Full time employees 2700 | Website https://www.penguinsolutions.com |
Full time employees 2700 | Website https://www.penguinsolutions.com |
Penguin Solutions, Inc. engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. The company also provides Penguin Computing that focus on technical computing for core and cloud environments through high-performance computing and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications, such as high-performance products for government, health care, manufacturing, and telecommunications applications. In addition, it offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, the company provides LED chip products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brands. It sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is based in Grand Cayman, Cayman Islands.

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