Rosenblatt analyst Kevin Cassidy expected SMART Global Holdings Inc. (SGH) to deliver a slight beat-n-raise to consensus 3QF22 and 4QF22 outlook. Cassidy maintained his Buy recommendation and $60 price target.
Cassidy saw upside coming from data center demand for Specialty Memory. The demand for SGH’s Penguin Solutions AI/HPC systems has remained robust. However, supply chain constraints likely limited shipments.
He modeled the Intelligent Platform Solutions (18 percent of 2Q22 revenue) business to be up 10 percent q/q and down 5 percent y/y to $90 million. IPS’ customers include large enterprises like Meta Platforms Inc., where SGH is helping provide AI-optimized capabilities for Meta’s cutting-edge supercomputer.