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Rosenblatt Sees 200 percent Upside in SMART Global, Coming From Data Center Demand for Specialty Memory

Rosenblatt Sees 200 percent Upside in SMART Global, Coming From Data Center Demand for Specialty Memory
Analyst Bio:

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.

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