PENGU ETF Launch Expands Leveraged Exposure To Penguin Solutions Amid AI Infrastructure Rally

• T-REX, a joint venture between REX Shares and Tuttle Capital Management, launched the T-REX 2X Long PENG Daily Target ETF (Cboe: PENU), offering 200% daily exposure to Penguin Solutions.
• Penguin Solutions reported a 48% year-over-year revenue increase in Q3, driven by a 104% surge in AI-driven sales that now comprise 74% of total revenue.
• Management raised full-year 2026 guidance to 22% sales growth and $2.60 EPS, citing accelerating demand for AI infrastructure components beyond semiconductor chips.
• The leveraged ETF launch coincides with a broader market focus on cloud, network, and system infrastructure as critical drivers of the ongoing AI buildout.

REX Shares and Tuttle Capital Management have expanded their tactical trading tools with the introduction of the T-REX 2X Long PENG Daily Target ETF, trading under the ticker PENU on the Cboe exchange. This fund is designed to deliver 200% of the daily performance of Penguin Solutions (Nasdaq: PENG), an AI and high-performance computing infrastructure company . The launch is part of a coordinated release of three leveraged ETFs targeting specific AI infrastructure players, alongside products focused on Akamai Technologies and DigitalOcean.

The strategic timing of PENU’s debut aligns with Penguin Solutions’ recent financial momentum. The company reported third-quarter revenue of $479 million, surpassing analyst estimates of $421.4 million by 13.67% . Non-GAAP earnings per share reached $0.84, significantly outperforming the consensus forecast of $0.56 by 50% . A primary catalyst for this outperformance was the AI-driven business segment, which generated $354 million in revenue, representing a 104% year-over-year increase. Within this segment, the Integrated Memory business saw revenue jump 111% to $275 million, fueled by strong demand for high-performance computing infrastructure .

Reflecting this accelerating demand, Penguin Solutions management revised its full-year 2026 outlook upward. The company now projects net sales growth of approximately 22% year-over-year, up from previous estimates of 12% . Earnings per share are now expected to reach $2.60, compared to the prior forecast of $2.15. Analysts have responded positively to the revised guidance, with Zacks Consensus Estimates for fiscal 2026 and 2027 revised upward to $2.60 and $3.40 per share, respectively . This upward revision follows a streak of four consecutive quarters where Penguin Solutions beat earnings estimates by an average of 22.5% .

Why Is Penguin Solutions Leading The AI Infrastructure Theme?

Penguin Solutions is gaining traction by addressing critical bottlenecks in large-context AI inference through its CXL-based MemoryAI KV Cache Server technology. This innovation targets memory constraints by improving performance, reducing time-to-first-token latency, and expanding memory capacity at a lower cost than traditional GPU high-bandwidth memory . The company is further advancing its technological pipeline through a partnership with Celestial AI to develop the MemoryAI Photonic Memory Appliance, supporting a long-term vision for next-generation AI memory infrastructure .

These technological investments have translated into tangible commercial results, validated by recognition from industry leaders such as NVIDIA and Dell . The company’s focus on cloud, network, and system infrastructure resonates with investors looking beyond semiconductor chips for AI exposure . Greg King, CEO of REX, emphasized that the AI buildout extends beyond chips to include cloud, network, and system infrastructure, making names like Penguin Solutions key drivers of the theme . Matt Tuttle, CEO of Tuttle Capital Management, described the leveraged ETFs as tools for traders to express high-conviction views on specific infrastructure players .

What Risks Offset The Strong Revenue Growth?

Despite the top-line beat and raised guidance, Penguin Solutions faces operational headwinds that warrant investor attention. Gross margins declined 3.6 percentage points year-over-year to 28.1% in the third quarter, a contraction driven by pricing pressure and working capital constraints . While the stock reacted positively to the earnings report, rising 15.89% following the July 7 announcement, the margin contraction highlights the challenges of scaling rapidly in a competitive infrastructure market .

Additionally, the company announced that CFO Nate Olmstead will depart on July 8, introducing a leadership transition during a period of accelerated growth . Investors should also note that the stock trades at a premium trailing P/E of 32.31X, although this valuation is supported by accelerating AI-driven revenue growth and strategic partnerships . For context, competitor Dell Technologies commands an even richer valuation at 36.28X, reflecting broader investor confidence in AI infrastructure opportunities .

The introduction of PENU amplifies both upside potential and downside risk due to the compounding effects inherent in daily leveraged products. Investors are reminded that investing in these funds is not equivalent to direct investment in the underlying stocks, and daily leverage introduces specific risks associated with volatility decay . The T-REX suite, which includes over 40 products, aims to meet demand for tactical, high-impact exposures to dynamic single stocks . As the AI infrastructure theme continues to evolve, the availability of leveraged instruments like PENU provides traders with new mechanisms to capitalize on sector-specific momentum while managing the associated volatility risks .