TacticScaleWhat Penguin Solutions Does & How It Makes Money (PENG)
Updated October 2026 · reflects Penguin Solutions's latest reported financials
Enterprise AI computing, memory, and LED hardware and services provider. It makes money by selling hardware (servers, memory modules, flash storage, LEDs), software, and deployment and management services to OEMs, enterprises and government customers.
How Penguin Solutions makes money
It makes money by selling hardware (servers, memory modules, flash storage, LEDs), software, and deployment and management services to OEMs, enterprises and government customers. Sales go through direct and third-party channels, and it also earns fees from supply chain services such as procurement, logistics and kitting.
What Penguin Solutions does
Penguin Solutions, formerly SMART Global Holdings, was founded in 1988 and is based in Fremont, California. It adopted its current name in October 2024. The company has three segments. Advanced Computing covers hardware, software and services for technical computing and AI, including the OriginAI platform for GPU deployments at scale and Stratus systems for continuous availability. Integrated Memory sells DRAM, memory modules, and SSD and flash storage under the SMART Modular brand. Optimized LED sells Cree LED components. Its customers include OEMs, enterprises and government buyers in areas such as networking, telecom, data analytics and AI/ML. It also provides supply chain services such as procurement, logistics, inventory management and packaging. It works with partners including Dell Technologies, Deepgram and ZulaFly on healthcare, location-based workflow and safety solutions.
Products & services
- Penguin Solutions OriginAI
- Stratus continuous-availability systems
- SMART Modular DRAM and flash storage
- Zefr memory modules
- Altus AMD EPYC servers
- Cree LED XLamp and J Series
What is Penguin Solutions worth?
On an owner-earnings DCF, Penguin Solutions's most-likely value is about $68 versus a recent price near $76 (10% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$34) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Super Micro Computer (SMCI) · NVIDIA (NVDA) · PCI Technology (600728.SS) · Pegasystems (PEGA) · Cambricon Technologies (688256.SS)