According to CNBC, Bank of America initiated coverage of Penguin Solutions with a buy rating and a $100 price target, implying 40% upside from Thursday's close. Shares rose nearly 2% in Friday trading, and the stock has climbed 266% year to date. Analyst Wamsi Mohan said the company could benefit from the agentic AI boom because of its experience installing and managing large AI clusters of graphics processing units and central processing units. He also said upside could come from a sustained memory cycle through 2028, stronger demand tied to agentic AI, improving margins and Penguin's ability to reduce time to first token in inference applications. Mohan added that Penguin has advantages over rivals because of its decades of experience designing, building and managing high-performance computing solutions and its ability to improve GPU cluster performance. LSEG data shows seven of the eight analysts covering Penguin Solutions rate the stock buy or strong buy.