Penguin Solutions, Inc. (PENG) stock soared 7.77% in after-hours trading on Tuesday, following a significant analyst action.

The sharp move higher came after Rosenblatt raised its price target on Penguin Solutions to $54 from $32 and maintained a Buy rating on the shares. The firm hosted meetings with the company, signaling continued positive sentiment.

Penguin Solutions is among the smaller chip stocks that have been swept up in Wall Street's artificial intelligence semiconductor boom. The stock has jumped over 100% this quarter, reflecting broader market enthusiasm for the sector, though some analysts caution that rising memory costs could pose future headwinds for smaller players.