Penguin Solutions, Inc. (PENG) saw a significant rise in its stock price on January 10, 2025, closing at $20.65, up 7.95% from the previous day's close of $19.13. The stock opened at $21.34, reaching a high of $21.35 before settling lower, yet still maintaining a substantial gain. The trading volume was notably high at 2,820,072 shares, nearly three times the average daily volume, indicating strong investor interest.
The surge in Penguin Solutions' stock was primarily driven by the announcement of a strategic partnership with SK Telecom and SK hynix to develop AI data center solutions. This collaboration, unveiled during CES 2025, aims to enhance AI computing technologies and address efficiency challenges in AI data centers. The partnership follows SK Telecom's recent $200 million investment in Penguin Solutions, underscoring the growing importance of AI infrastructure. Additionally, Barclays raised its price target for Penguin Solutions from $22.00 to $23.00, contributing to the positive sentiment.