Sponge

$PENG Penguin Solutions Becomes an NVIDIA AI Factory Specialized Partner "Joining a select group of NVIDIA Partner Network (NPN) solution providers. Penguin brings proven experience in designing, building, deploying, and operating full-stack, NVIDIA-based AI factory infrastructure for enterprise-scale AI factories that power AI training, inference and agentic AI workloads."

BREAKING: President Trump says the Trump Administration might buy equity stakes in US AI companies and that he will host a meeting with AI executives as soon as next week, per Reuters.

Here’s why the $KOPN base case is $13.50 and bull case $42. AI’s bottleneck isn’t compute — it’s the wires between GPUs (one of many bottlenecks). Copper hit a wall. Silicon photonics is expensive. MicroLED is the dark horse: sub-pJ/bit, no lasers, CMOS-compatible. $90B AI optics TAM by 2030.

AI has a memory problem. $PENG has the solution. And it’s only a matter of time before the price reflects that. Every long AI conversation builds a “KV cache” inside the GPU. Long docs, agent tasks, big context windows — the cache overflows fast. When it overflows, GPUs recompute, stall, or refuse the request. That’s why inference is so expensive.🧵

ServiceNow just raised AI guidance. AI/Now Assist grew by +130% YoY last quarter, with deals including 3+ Now products increasing by 70%. New Guidance: $1.5B (raised +50%) $NOW

Wonder Where $NOW is Headed @BullflowIO

$PENG just announced the current president of network infrastructure at $NOK and former CEO of $INFN (before NOK bought them) has joined the board.

$PENG has a fairly convincing path to get to $2.5B in sales in 2028…at a reasonable 5x multiple that would be a $12.5B market cap vs. $2B today. The mistake is not anyone counting on “photonic memory”, the mistake is pricing $PENG as a systems integrator when it is really an “anti-hyperscaler” as Manuel Walz (Garp Investing substack) so aptly put it in what I believe is one of the best pieces on $PENG to be published. As he so eloquently explains, the company “builds the sovereign, on-prem AI factory that enterprises, governments, and telco operators can’t obtain from AWS, Azure, or GCP”. He goes on to superbly address their software moat (ICE ClusterWare abs MemoryAI) already being deployed at production scale in Korea w/ $SKM who is an investor and sits on the BOD along w/ the Chairwoman of $LITE and CTO of $AMD. He then rightly talks about how the $NBIS acquisition of Eigen AI validates the inference optimization layer at the “highest value layer of the AI stack”. And then how the $NVDA/$NOK $1B partnership creates a “distributed edge inferencing market worth > $200B by 2030 rhat $PENG is UNIQUELY positioned to serve.” $SKM is embedding $PENG in their rollout of its national AI -native strategy and has preferred convertible into shares at $33 purchased 2 years ago way before the big memory bottleneck was appreciated and $PENG was not one of or perhaps the only company with a production ready CXL-based KV Cache server to unlock the memory wall. This is critical with inference workloads being bound predominantly by memory (70%) and only 30% by compute. This technology didnt appear out of nowhere, it builds on $PENG’s 30-year Smart Modular Technology heritage and…the strategic deal they inked with SK Hynix in Jan of 2025 giving $PENG access to cutting edge DRAM packaging the the competition cannot replicate. There is a lot more in Manuel’s piece on Substack, and I think his stuff is highly underrated as he is an extremely insightful writer. I also want to acknowledge @Temple_Eight for being early to write up this name and put it in front of me as an idea requiring serious consideration as a core portfolio position. I will be very surprised if within 12-18 months this isnt a 10-figure marker cap, which implies a 5-6x from Friday’s close. @ThematicTrader or @BryzonX feel free to chime in here if you have anything to add! NFA. Good luck and happy trading.

Us in 2030 because we bought $NOW at $90

Wait till we find out tomorrow this guy bought $PENG 🐧