Penguin Solutions shares jumped 5.8% in extended trading on Tuesday after the semiconductor company posted fiscal third-quarter results and guidance that topped estimates.

For the period ending May 29, Penguim said it earned an adjusted $0.84 per share as revenue jumped 47.6% year-over-year to $478.71M. Analysts had expected the company to earn an adjusted $0.54 per share on $407.47M in revenue.

“Penguin Solutions delivered a record quarter, exceeding expectations for both net sales and EPS. This profitable growth acceleration reinforces our confidence that our AI Factory Platform strategy is working. Integrated Memory net sales more than doubled year over year, and our AI Infrastructure business continued to build momentum, reflecting strong demand and execution across our memory and AI Infrastructure portfolio,” said Penguin Solutions CEO Kash Shaikh in a statement.

“We are seeing very strong AI-driven customer demand for memory and AI infrastructure solutions,” Shaikh continued. “As inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks. Penguin is well positioned at the intersection of memory and AI infrastructure to help customers address these evolving requirements. Given robust demand and disciplined execution, we are raising our full-year outlook for both net sales and EPS.”

Penguin said it now expects adjusted earnings to be between $2.55 per share and $2.65 per share, with revenue between $1.64B and $1.7B. Analysts had expected the company to earn an adjusted $2.23 per share on $1.56B in revenue.