Editor's Note: The IPO gold rush is here. SpaceX just went public in the biggest IPO ever, and Forbes is warning of "an IPO tsunami heading for Wall Street." And most investors are about to get left in the dust, as always. Meanwhile, trading legend Larry Benedict found a way to pocket $321, $1,605, or even $3,210 or more on IPO day without ever touching the stock, something he has done 95 times at a documented 82.1% win rate. This Wednesday, July 15, at 8 p.m. ET, you are invited to join Larry for a free strategy session. (See more below) Or click right here to RSVP now.
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Urgent Strategy Session: 5-Minute IPO Profits, with Larry Benedict.
Wednesday, July 15, at 8 p.m. ET.
Click here to save your seat automatically, 100% free.
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Dear Reader,
On IPO day, there are only two kinds of people.
The ones who collect... and the ones who get the scraps.
For 40 years, Wall Street decided which one you'd be.
This Wednesday, Larry hands you the keys to potentially profiting on IPO days.
He'll show you how to pocket a triple- or quadruple-digit payout the day a company goes public, from one simple, five-minute trade, without ever owning a share.
He's made this trade 95 times since 2022, at a documented 82.1% win rate.
And with more than 800 companies lined up to go public, we’re just getting warmed up.
Don't let the IPO profit wave be another missed shot you could have taken.
To avoid disappointment...
Click here now to add your name to the guest list automatically, 100% free.
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This is your last call to attend the strategy session Wednesday, July 15, at 8 p.m. ET.
Regards,
Lauren Wingfield
Managing Editor, The Opportunistic Trader
P.S. When you reserve your seat, you'll
As a VIP, you'll get instant access to Larry's brand-new report, The $4 Trillion IPO Tsunami, plus text reminders so you don't miss the session. Click here to claim your spot automatically.
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Why Penguin Solutions May Be the Smartest AI Infrastructure Stock
By Thomas Hughes. Article Posted: 7/8/2026.
Key Points
- Penguin Solutions reported fiscal Q3 2026 revenue of $479 million, up nearly 48% year-over-year and well above consensus estimates, driven largely by AI demand.
- The company raised full-year guidance significantly, including a 22% revenue growth target and improved adjusted gross margin and earnings per share forecasts.
- Analysts and institutional investors remain bullish, with a Moderate Buy consensus, rising price targets, and shares up more than 200% since April despite high valuation concerns.
- Special Report: SpaceX is offering you shares. Don't take them.
While not technically a pure-play GPU-as-a-Service or neocloud operator, Penguin Solutions (NASDAQ: PENG) is essentially in the same business as Nebius (NASDAQ: NBIS), Iren (NASDAQ: IREN), and Applied Digital (NASDAQ: APLD), but with far less risk.
It helps businesses, enterprises, governments, and hyperscalers access AI-capable, high-performance computing (HPC) capacity, along with the software and services needed to run it.
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidThe difference is that Nebius, Iren, and Applied Digital take on significant risk by owning GPUs, data centers, and the infrastructure needed to operate them, while Penguin Solutions doesn’t. It is the true enabler, focusing on clients with the capacity to build their own HPC systems and providing the engineering, hardware, software, and services to make it all work. This includes long-term contracts for data center operation and maintenance, which are the real story in AI. While the data center buildout gets the headlines today, it will be day-to-day operations and maintenance that drive revenue and cash flow in the long term.
Penguin Solutions Earnings Results Signal Game-Changing Shift
Penguin Solutions' Q3 fiscal 2026 results and guidance were so strong, underpinned by AI demand, as to be comparable to NVIDIA's (NASDAQ: NVDA), relatively speaking. Revenue grew nearly 48% year over year to $479 million, more than $55 million above MarketBeat’s reported consensus estimate and about 1,360 basis points better than expected. Strength was driven by AI, with Integrated Memory more than doubling year over year (YOY). Integrated Memory is critical to Penguin Solutions' business, as it helps ease the memory bottleneck by enabling HPC data centers to pool memory across clusters, improving latency and efficiency.
Margins were another critical part of the story. Long criticized for its profitability metrics, the company appears to be turning a corner. While gross margins were compressed, internal improvements and operating leverage helped expand operating margin, allowing top-line strength to carry through. Highlights include record GAAP and adjusted operating income, with adjusted operating income up 67% compared with the 48% top-line increase. Looking ahead, the strength is expected to continue, as reflected in the guidance.
The guidance was as eye-popping as the revenue, with full-year revenue now expected to grow by 22%, a 1,000 basis point improvement from the prior quarter. Within that, the adjusted gross margin target improved by 50 basis points, and adjusted earnings per share (EPS) by 45 cents, or 2,040 basis points. Those projections may still prove cautious. There is clear momentum in the data center industry, and Penguin Solutions has emerged as a top-tier service provider. With this in play, investors should expect results to remain strong for the foreseeable future.
Penguin’s fiscal Q3 strength is also reflected in its balance sheet. While cash is down year to date, the decline is minimal; the company is well-capitalized, and metrics including receivables, inventory, and equity reflect strength. Receivables more than doubled to over $700 million, more than offsetting the cash decline, while inventory also more than doubled and long-term debt declined. The impact on equity was substantial, increasing by nearly 11.5%.
Penguin Solutions Q3 Results Affirm Analysts' Support: Price Targets Rise
Penguin Solutions' fiscal Q3 results affirmed the bullish stance analysts had displayed ahead of the release, prompting some to lift their price targets again after the report. Commentary focused on the massive top-line beat and margin improvements, which directly refute the critics.
The takeaway is that 10 analysts rate this stock as a Moderate Buy, there is a 70% buy-side bias, and price targets are rising. The consensus price target still trails price action, but that is not a concern, as it rose by 40% on a trailing three-month basis as of early July, with high-end targets forecasting fresh all-time highs.
Institutional activity is also bullish, with institutions owning more than 97% of the shares and aggressively buying at a $3-to-$1 pace over the trailing 12 months. They provide solid support and limit downside risk, setting the stage for retail investors to drive shares higher. The likely outcome is that institutions continue to underpin support in future quarters while improving visibility draws retail money into the market.
The chart action is robust. PENG shares have rallied strongly since April, rising by more than 200%. Price action has pulled back from its peak, but MACD convergence suggests this rally is far from over. Convergence across multiple time frames, including monthly, weekly, and daily chart action, suggests new highs are likely. The critical support and resistance levels are near $60 and $75; a move below $60 is unexpected, while a move above $70 is more likely. The biggest risk is valuation, which is high at approximately 35x earnings. However, the fiscal Q3 results affirm a healthy growth outlook, putting this stock at value levels within a few years.
AI Fears Hit Nebius Stock, But Has the Growth Thesis Changed?
By Ryan Hasson. Article Posted: 6/30/2026.
Key Points
- Nebius Group shares have surged almost 240% year to date, but the stock’s June pullback shows how quickly AI sentiment can shift.
- Nebius Group’s valuation remains the central risk, with rich sales and earnings multiples leaving little room for execution setbacks.
- Nebius Group’s revenue guidance, contracted demand and infrastructure expansion still support the long-term AI growth thesis.
- Special Report: SpaceX is offering you shares. Don't take them.
Nebius Group (NASDAQ: NBIS) has been one of the market’s standout AI stories this year, with shares up almost 240% year to date. But the recent wave of AI-related volatility has tested the resolve of even the most committed believers in the neocloud thesis. After surging to an all-time high of $299.86 on June 22, the stock pulled back meaningfully as fears around AI valuations and the durability of the trade swept through the technology sector. Since reaching that peak earlier in June, the stock has fallen by almost 13%.
The question now facing investors is simple: Does Nebius’ elevated valuation leave it dangerously exposed if those fears intensify, or is this still one of the best long-term ways to play the AI infrastructure buildout?
Nebius Relief Rally Shows AI Sentiment Is Stabilizing
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidThe picture brightened considerably at the start of the week. On Monday, June 29, 2026, technology stocks caught a major bid, with memory, semiconductor, and neocloud names all outperforming. Some geopolitical relief appeared to ease pressure on the broader AI trade, and the higher-beta names that had sold off the hardest were among the biggest winners. Nebius rose almost 9% on the session, closing at $261.15.
Even after that move, however, the stock remains well off its peak. At current levels, NBIS sits almost 13% below its 52-week high. That is worth emphasizing because it captures the dynamic unfolding across much of the AI complex right now. Many of these names rallied hard on June 29, but a single strong session does not erase the damage from the recent selloff. Several leading AI infrastructure names, Nebius included, remain meaningfully below their recent peaks.
Nebius Valuation Leaves Little Room for Error
There is no avoiding the elephant in the room. Nebius trades at a price-to-sales ratio of roughly 80 and a trailing price-to-earnings (P/E) above 93. On any conventional measure, that is an extremely rich valuation, and it is precisely why the stock is so sensitive to shifts in sentiment around the AI trade. When a company is priced for years of hypergrowth, even small changes in the market’s appetite for risk can produce outsized swings in the share price. That cuts both ways, as June 29’s nearly 9% jump demonstrated, but it does leave the stock vulnerable if AI fears genuinely intensify from here.
The bears have a legitimate point on this front. A stock trading at 75 times sales has very little margin for error. Any disappointment in execution, any slowdown in contracted revenue, or any broad derating of the AI infrastructure space could hit NBIS harder than its more reasonably valued peers.
Nebius Fundamentals Still Support the AI Growth Thesis
That said, the fundamental story underpinning the valuation has not deteriorated. If anything, it continues to strengthen. Nebius is guiding toward 2026 revenue of $3 billion to $3.4 billion, a staggering increase from the $529.80 million in annual sales it currently reports, and is targeting annual recurring revenue (ARR) of $7 billion to $9 billion. The company has raised its contracted power capacity guidance to over 4 gigawatts by year-end. Its backlog of contracted revenue, anchored by major multi-year agreements with Meta (NASDAQ: META) and Microsoft (NASDAQ: MSFT), provides forward visibility that few companies growing at this rate can match.
The recent news flow reinforces that trajectory. The 1.7 billion pounds (around $2.3 billion) UK expansion announced in early June, the move up the value stack through the Eigen AI acquisition, and the broader buildout across the U.S. and Europe all point to a company executing aggressively against an enormous opportunity. This is not a speculative concept stock. It is a business converting hyperscaler demand into signed contracts and deployable infrastructure at a remarkable pace.
Nebius Stock: Worry and Opportunity Can Coexist
The honest answer is that both things can be true at once. The valuation does leave Nebius exposed to sharp drawdowns if AI sentiment sours, and investors should expect continued volatility. But the underlying business remains one of the best-positioned in the entire neocloud space, with contracted revenue visibility, accelerating expansion, and a clear runway for years of growth ahead.
For long-term investors who believe in the AI infrastructure thesis and can stomach the swings, the recent pullback, with the stock still sitting almost 13% below its high even after the surge on June 29, may represent a more attractive entry than chasing the stock at its peak. The key takeaway is this: the selloff was a sentiment event, not a fundamental one. As long as Nebius continues to execute, the long-term thesis remains very much intact.
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