Penguin Solutions (PENG) of Fremont, California, is targeting the AI 'memory wall' with CXL technology that adds memory outside the GPU, so processors spend less time waiting for data. A KV cache server shown in September pairs 3 terabytes of DDR5 with up to eight 1-terabyte CXL cards, for roughly 11 terabytes per machine. In its fiscal fourth quarter it signed six new AI infrastructure customers, four of them neoclouds, including a 36,000-GPU facility in Norway backed by a $10 billion compute contract. The article says its software and operations capabilities are hard to replicate, but its memory business is cyclical, the stock has fallen over 30% from its early-October peak, and it depends on a few large customers. The author sees the stock as overlooked and an opportunity, while noting it remains partly cyclical.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
artificial intelligencesemiconductorsdata centers
Open a keyword to see other news on the same topic.
Related news
- Missed Out On Micron and Sandisk? Make Sure You Don't Miss Out On This Memory Stock.
The article argues Penguin Solutions (PENG) is a growth stock worth watching, riding the same tailwinds as memory chipmakers Micron and Sandisk. Revenue in fiscal 2026's fourth quarter rose 68% year over year, driven by its integrated memory segment, which grew 158% and made up 60% of sales on demand for CXL memory modules that address AI data center bottlenecks. The company won six new AI infrastructure data center customers in the quarter, including four neocloud providers. Net income jumped 888% to $93 million, the stock trades at a 12.5 forward P/E and a market cap of about $3 billion, and guidance calls for 40% revenue growth in fiscal 2027. Penguin Solutions has beaten EPS estimates eight consecutive times.
- Nvidia tells data center partners to limit China sales- FT
According to the Financial Times, citing five people familiar with the matter, Nvidia has told its data center partners to reduce their exposure to Chinese customers. Cloud computing clients must now sell at least 51% of their services to non-Chinese companies, a restriction that did not exist before. The instructions were conveyed verbally through Nvidia's sales force and regional teams rather than in writing. The move complicates AI development for Chinese firms that have leased overseas computing capacity, including for model training, as Washington tightens Chinese access to advanced chips through cloud deals. The report also notes that Nvidia chips have been smuggled into China despite U.S. restrictions since at least 2022, and several senior Super Micro employees were charged earlier this year with smuggling about $2.5 billion worth of Nvidia AI servers to China.
- Intel (INTC) Joined A $700 Million AI Startup Funding Round
Intel has joined a US$700 million funding round for AI startup Hark, alongside Nvidia and AMD Ventures. Hark is building AI-native hardware and digital assistant foundation models that require substantial computing resources. The article links Intel Capital's role to Intel's broader push into AI infrastructure and data center demand. It also flags risks, including heavy capex on U.S. fabs and foundry losses that depend on strong AI uptake.
- 5 AI Infrastructure Stocks to Buy and Hold Through 2030
The article highlights five companies across different layers of AI infrastructure: Marvell (MRVL), AMD, Forgent Power Solutions (FPS), Oracle (ORCL) and Brookfield (BN). Marvell's data center revenue rose 46% and made up 79% of sales, with the stock trading at about 30 times forward earnings, while AMD's revenue grew 50% and its stock trades at about 42 times forward earnings. Forgent's $3 billion backlog covers more than 90% of expected next-year revenue, and Oracle's remaining performance obligations total $664 billion with its stock at about 14 times forward earnings. Brookfield is planning a $100 billion AI data center campus in Kentucky with NextEra Energy. The author says he spreads his AI investments across these different parts of the build-out to reduce the risk that hyperscaler AI spending slows.
- Nvidia Isn't the Only AI Winner. Qualcomm May Be the Next Stock to Watch
Qualcomm is lining up two custom silicon wins with global hyperscalers for data center chips, expected to start generating revenue in the December quarter, with data center targets of $5 billion in fiscal 2027 and $15 billion in fiscal 2029. Fiscal Q3 revenue of $9.95 billion beat the $9.67 billion consensus, but non-GAAP EPS of $2.21 came in just short of the $2.22 estimate, as handset revenue fell 20% while automotive rose 61%. The main risk is handset weakness, with Qualcomm's share of upcoming iPhones expected to be materially lower than 20% and Android revenue seen falling 20% in fiscal 2027. The 24/7 Wall St. price target is $225.91, 24.46% above the $181.51 share price, with a buy rating, while its bear case is $190.77.
- Prediction: This Under-the-Radar AI Stock Could Have a Big 2030 Ahead
Marvell Technology is described as one of the purest ways to invest in the buildout of AI data centers. Its Data Center segment brought in $2.1715 billion last quarter, up 46% and making up 79% of revenue; shares are up 194.58% year to date but 24.2% below their 52-week high of $329.73. The article flags concerns including non-GAAP gross margin guidance of 57.5% to 58.5% for Q3, down from 58.9% in Q2, fiscal 2027 operating expenses of about $2.55 billion, reliance on a small group of hyperscalers, and a Google warrant that could dilute shareholders by up to 7%. The Wall Street consensus target of $341.44 implies 36.6% upside, while the article's model base case is $284.80; reaching $500 by 2030 would require a 100.1% gain and a forward P/E of 82x.
Related markets
Latest news
- AMD Fell 16% in a Month Before Earnings. Forecasts Call for 501% Profit Growth in Four Years
AMD shares fell 19.23% over the past month ahead of third-quarter results due November 3 after the close, though they are still up 130.73% year to date. The company has gigawatt-scale AI commitments: Anthropic plans up to 2 GW of MI450 GPUs in Helios, OpenAI has committed to 6 GW, and Meta has signed for up to 6 GW more. Second-quarter revenue reached $11.536B, up 50.11%, and Data Center revenue rose 107% to $6.718B, while AMD forecast third-quarter revenue of about $13B ±$300M. According to 24/7 Wall St., the $527.02 price target implies 4.4% upside from the $504.80 reference price and carries a hold rating at 90% confidence. Risks include a 31% drop in gaming revenue, export controls, reliance on Taiwan Semiconductor Manufacturing (NYSE:TSM) and tight server CPU supply.
- Amazon Vs. Intel: The Good Burn and The Very Bad Burn
Amazon and Intel both reported third-quarter results on October 29, 2026, with strong AI numbers, but Intel shares fell from $93.09 to $59.97 while Amazon was down 9.71% over six months. AWS revenue rose 39% to $45.98B with a $578 billion backlog, but Amazon's capex jumped 120% to $77.26B, leaving a trailing free cash outflow of $42.4B despite a 13.9% operating margin. Intel's Data Center and AI revenue rose 78% to $7.32B, but Intel Foundry lost $1.85B and external foundry revenue was only $411 million. Intel raised $23B in new equity and warned it probably will not generate positive free cash flow next year as it ramps Intel 18A, Intel 3 and 14A simultaneously. The article views Amazon's spending as a 'good burn' backed by signed demand, while Intel suits turnaround investors who can tolerate a cash-negative 2027 and would change their view once named foundry customers sign on.
- Binance Misses Monthly Luna Classic Burn for First Time Since 2023
Binance has burned a share of its Luna Classic (LUNC) trading fees nearly every month since March 2023, but according to StatsBin data, the November burn has yet to occur. Some investors link the delay to the record $6.3 billion hack of Binance, which the FBI attributes to North Korea’s TraderTraitor. A prominent community member says Binance is moving LUNC to a more secure wallet before resuming burns, though Binance has not confirmed this or responded to a request for comment. LUNC has dropped 7.9% over the past week to $0.0000417, down 99.99% from its all-time high of $119.18. Binance previously paused burns at the end of 2022, after the Terra Classic community voted to re-mint burned tokens.
- Here’s Why You Buy Amazon Even As It Spends More on AI Than It Generates From Operations
Amazon reported third-quarter revenue up 12.1% to $201.94B and its highest-ever operating margin, but capex of $77.26B exceeded operating cash flow of $42.42B. AWS revenue rose 39% to $45.98B with a $578 billion backlog, while operating income climbed 61.2% to $28.08B and AWS posted a 38.7% operating margin. Quarterly interest expense rose to $1.691B from $538M a year earlier, and trailing free cash outflow stands at $42.4B. The article rates Amazon a Buy at $245.63, arguing the backlog covers the capex, and the average analyst target of $327.70 implies 33.4% upside. The argument weakens if AWS growth slows in 2027 or AWS margins are squeezed by a greater AI mix.
- AMD, Nvidia Could Join Tesla On Samsung's Texas Chip Plant Customer List: Report
Samsung Electronics reportedly will make base dies for high-bandwidth memory (HBM) chips at its second Texas plant, with orders covering all planned output, mostly from AMD, according to Maeil Business Newspaper as cited by Reuters. Nvidia could also join the customer list, though Samsung would manufacture these components rather than the main processors designed by AMD and Nvidia. The 2.7 million square foot factory, about 1.5 times the size of Samsung's first Texas plant, is scheduled to begin construction this month, with equipment installation in 2029 and production in 2030 using the 2-nanometer process. Samsung's first Texas plant already has a $16.5 billion contract with Tesla, signed in July 2025. In pre-market trading on Tuesday, AMD shares rose about 2.3% and NVDA shares rose about 1.4%, while Stocktwits sentiment moved to bullish for AMD and bearish for Nvidia.
- J.P. Morgan expands UAE footprint with DIFC private bank branch
J.P. Morgan Private Bank has opened a branch at the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA), to serve clients in the UAE and across the Middle East, Africa and South Asia. The move builds on J.P. Morgan's more than five decades in the UAE and 20 years of DIFC-based corporate and investment banking. Ahead of the private banking authorisation, the firm more than tripled its Dubai private banking workforce over the past 12 months, DIFC said. J.P. Morgan International Advisors has also received authorisation to provide asset management services at DIFC, and Selim Elgen heads the UAE private banking operation. DIFC Authority CEO Arif Amiri said the expansion reinforces Dubai's position as a global hub for private wealth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.