NEW YORK — Penguin Solutions Inc. shares surged more than 22% in morning trading Tuesday, reaching $72.99 as investors piled into the AI infrastructure and memory solutions provider amid renewed enthusiasm for its positioning in the expanding artificial intelligence data center market.

The sharp gain builds on recent strength, with the stock having climbed significantly in recent weeks on the back of raised fiscal 2026 guidance and strong demand for its memory and AI factory platforms. At current levels, Penguin Solutions is trading near its all-time highs, reflecting broader sector tailwinds from AI infrastructure spending.

Penguin Solutions, formerly known as SMART Global Holdings, has transformed into a focused provider of enterprise AI infrastructure, designing, building, deploying and managing complex systems for hyperscale and enterprise customers. Its OriginAI platform and specialized memory solutions have positioned it as a player in the race to scale AI inference and training workloads.

Strong Q2 Results and Raised Guidance

In early April, the company reported fiscal second-quarter results that exceeded expectations and lifted its full-year outlook. Net sales reached $343 million, with non-GAAP earnings per share of $0.52. Management raised fiscal 2026 net sales growth guidance to around 12% at the midpoint, with non-GAAP EPS targeted near $2.15.

CEO Kash Shaikh highlighted momentum in AI/HPC initiatives. "Enterprises, governments, and neocloud providers are racing to build AI factories," he said in the earnings release, noting expanded........

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