Penguin Solutions is poised to be a beneficiary of the agentic artificial intelligence boom, driving considerable upside to its shares, according to Bank of America. The bank initiated coverage of the AI infrastructure stock with a buy rating. It also put a $100 price target on shares, suggesting 40% upside from Thursday’s close.Shares rose nearly 2% in Friday trading. “In the age of agentic AI, we see the company as a key beneficiary with the domain expertise of installing and managing the performance of large AI clusters of [graphics processing units (GPUs)] and [central processing unit],” analyst Wamsi Mohan said Friday in a note to clients. “We see upside … driven by a sustained memory cycle (through 2028), growing traction in demand driven by agentic AI, improving margins and Penguin’s unique ability to lower the time to first token in Inference applications.” The analyst added that the firm has several advantages over its competitors, including its decades of experience designing, building and managing high-performance computing solutions. The company also has an edge on its peers because of its ability to improve the performance of GPU clusters, which should give its stock an additional boost, per Mohan. Bank of America’s call falls in line with consensus on Wall Street. Of the eightanalysts covering Penguin Solutions, seven have a buy or strong buy rating on the stock, LSEG data shows. Shares have jumped 266% year to date.
