--- title: "Bank of Nova Scotia went quiet on Penguin Solutions at 2.53% three weeks before its fiscal Q4 print" description: "A Schedule 13G/A filed October 19 shows Bank of Nova Scotia reporting 2.53% of Penguin Solutions, below the 5% line where passive filings end, weeks before a fiscal Q4 print that must convert Norway and Axe Compute headlines into bookings. The stock is down 36% from its high while two brokers hold $100 targets." publisher: "The Inference" section: "Markets" published: 2026-10-20T21:26:19.343Z modified: 2026-10-20T21:26:19.343Z canonical: https://theinference.org/article/bank-of-nova-scotia-went-quiet-on-penguin-solutions-at-2-53-three-weeks-before-its-fiscal-q4-print language: en keywords: "Penguin Solutions, Schedule 13G, AI Infrastructure, Analyst Targets" --- # Bank of Nova Scotia went quiet on Penguin Solutions at 2.53% three weeks before its fiscal Q4 print > A Schedule 13G/A filed October 19 shows Bank of Nova Scotia reporting 2.53% of Penguin Solutions, below the 5% line where passive filings end, weeks before a fiscal Q4 print that must convert Norway and Axe Compute headlines into bookings. The stock is down 36% from its high while two brokers hold $100 targets. A Canadian bank just stepped out of [Penguin Solutions](https://theinference.org/markets/companies/penguin-solutions)' disclosure net, three weeks before the company's biggest test of the AI-factory story. [A Schedule 13G/A filed on EDGAR October 19](https://www.sec.gov/Archives/edgar/data/1616533/000000963126000035/0000009631-26-000035-index.htm) shows Bank of Nova Scotia holding 1,320,241 shares, 2.53% of the class, as of September 30, with the "5% or less" box checked and the amendment signed October 16 [1]. The mechanics matter. A passive 13G/A below 5% requires no future filings: the bank can now buy or sell with total silence. The position may be custody plumbing, but the disclosure effect is identical: one holder's moves have gone dark ahead of [the fiscal Q4 print in early November](https://www.streetinsider.com/Business+Wire/Penguin+Solutions+Sets+Conference+Call+for+Fourth+Quarter+and+Fiscal+2026+Results/27064828.html) [1][7]. ## A record year built on memory, not AI factories The fiscal 2026 results, reported October 6, were real: net sales up 26% to $1.73 billion, fourth-quarter sales up 68% to $566.7 million, non-GAAP EPS of $1.00 against a $0.77 consensus [2]. But the mix is the story. Integrated Memory nearly doubled to $924.0 million while Advanced Computing, the segment that books AI-factory build and operations work, fell 13.8% to $558.8 million [2]. *Chart: **Flat for a year, then fiscal Q3 2026 broke the pattern: net sales up 48% year over year** Line chart of Penguin Solutions quarterly net sales, drifting from 274.25 million dollars in fiscal Q1 2024 to around 343 million dollars through fiscal Q2 2026, then jumping to 478.71 million dollars in fiscal Q3 2026.* *Quarterly net sales in millions of US dollars by Penguin fiscal quarter; the fiscal year ends in late August. Figures from SEC filings [8]. The fiscal Q4 2026 quarter, reported October 6 at 566.7 million dollars, up 68% year over year, falls outside this chart. [8]* ## The headlines were other people's money The two announcements that drove the October rally carry no Penguin contract value. [The Norway project](https://theinference.org/article/penguin-solutions-10-billion-norway-ai-factory-is-a-customer-s-compute-not-penguin-s-revenue): a customer selected Penguin to deploy a 36,000-GPU factory, but no fee, margin or timing is disclosed, and that customer, Volta, is expected to price $5 billion of debt at 11% or more [2]. The Axe Compute partnership: $3.45 billion belongs to Axe's contracted projects, with Penguin supplying ClusterWareAI software and 24/7 network operations for specified sites [3]. Both are other companies' balance sheets wearing Penguin's logo. ## The register moved before the print The market noticed first. [PENG](https://theinference.org/markets/companies/penguin-solutions) [fell 11.82% to $59.60 on October 15](https://www.ad-hoc-news.de/boerse/news/nebenwerte/penguin-solutions-stock-falls-11-82-percent-at-p-e-23-01/70331109), then 7.69% to $57.10 on October 16, now 36% below its $89.86 high and 20x perps launched the same week [4][5][6]. Against that, Rosenblatt and [BofA](https://theinference.org/markets/companies/bank-of-america) [hold $100 targets](https://www.ad-hoc-news.de/boerse/news/nebenwerte/rosenblatt-lifts-target-for-penguin-solutions-stock-to-usd-100-00/70351633) on a ~40% fiscal 2027 growth guide and $4.45 non-GAAP EPS [4][5]. *Chart: **The Street still holds $100 targets; the market paid $57.10 on October 16** Column chart comparing Penguin Solutions' October 16, 2026 close of 57.10 dollars with the 100-dollar price targets held by BofA and Rosenblatt.* *Penguin Solutions' last close against broker price targets, in US dollars per share. The two targets are analyst projections. Sources: ad-hoc-news.de [4][5]. [4][5]* The fiscal Q4 Advanced Computing bookings are the number to watch: the first real reading on whether the Norway and Axe headlines convert into Penguin's own revenue. Until then, size the stock on Penguin's bookings, not its customers' press releases. ## Takeaway Bank of Nova Scotia's amendment drops it to 2.53% of Penguin, below the 5% line where disclosure ends, freeing it to trade in silence ahead of a fiscal Q4 print that must turn the Norway and Axe Compute headlines into Advanced Computing bookings. ## Sources 1. [SEC EDGAR, Schedule 13G/A, Bank of Nova Scotia / Penguin Solutions, Inc., filed 19 October 2026](https://www.sec.gov/Archives/edgar/data/1616533/000000963126000035/0000009631-26-000035-index.htm) 2. [The Inference, Penguin Solutions' $10 billion Norway AI factory is a customer's compute, not Penguin's revenue, 15 October 2026](https://theinference.org/article/penguin-solutions-10-billion-norway-ai-factory-is-a-customer-s-compute-not-penguin-s-revenue) 3. [Stock Titan, Axe Compute Signs Penguin Solutions as Strategic Partner, 14 October 2026](https://www.stocktitan.net/news/AGPU/axe-compute-signs-penguin-solutions-as-strategic-partner-to-sbz0ndgqh4cl.html) 4. [ad-hoc-news.de, Penguin Solutions stock falls 11.82 percent at P/E 23.01, 15 October 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/penguin-solutions-stock-falls-11-82-percent-at-p-e-23-01/70331109) 5. [ad-hoc-news.de, Rosenblatt lifts target for Penguin Solutions stock to USD 100.00, 18 October 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/rosenblatt-lifts-target-for-penguin-solutions-stock-to-usd-100-00/70351633) 6. [X, @variational_io, PENG perps live with zero fees and 20x leverage, October 2026](https://x.com/variational_io/status/2111175703266054421) 7. [StreetInsider, Penguin Solutions Sets Conference Call for Fourth Quarter and Fiscal 2026 Results, 14 October 2026](https://www.streetinsider.com/Business+Wire/Penguin+Solutions+Sets+Conference+Call+for+Fourth+Quarter+and+Fiscal+2026+Results/27064828.html) 8. [Penguin Solutions quarterly figures from SEC filings, retrieved 20 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001616533) --- Bank of Nova Scotia went quiet on Penguin Solutions at 2.53% three weeks before its fiscal Q4 print — The Inference. Canonical: https://theinference.org/article/bank-of-nova-scotia-went-quiet-on-penguin-solutions-at-2-53-three-weeks-before-its-fiscal-q4-print