SummaryCerebras Systems Inc. has fallen 69% from its $386 peak, while Q2 core revenue still grew 103% year over year.RPO reached $25.4 billion, cash exceeded $8.6 billion, and management expects 2027 core revenue to more than triple.AMD integration could increase throughput around 5x, but customer deployment and real revenue conversion remain the key proof points.At $109, CBRS stock valuation still looks expensive today, but 2027 consensus sales imply a much lower 9.5x P/S multiple. NiseriN/iStock via Getty Images
With Cerebras Systems Inc. (CBRS) now around $109, I don't think it makes much sense anymore to discuss how expensive the stock was near $386. What matters to me now is whether this big decline has created an
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Akcie Cerebras od svého debutu klesly o 62,07 %, zatímco zpráva naznačuje, že OpenAI by pro GPT-6.1 Sol mohlo využít GPU NVIDIA namísto hardwaru Cerebras.
Cerebras Systems has shed more than 60% since its splashy debut, yet Wall Street analysts keep raising their price targets. One report about a single customer could determine whether this AI chipmaker stages a massive comeback or slides further into…
Cerebras Systems (NASDAQ:CBRS) currently trades at $117.98. The average analyst price target is $282.55, meaning 139.5% upside.
Cerebras makes wafer-scale AI chips and sells fast cloud inference to CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) and others; key customers are OpenAI, AWS, CrowdStrike, and G42. The Street-high target goes to UBS analyst Timothy Arcuri at $330.00, meaning about 179.7% upside. That rounds to 180%.
Implied upside above 40% means the market and analysts disagree sharply about this company’s future. The stock has also fallen more than 30%, so the disagreement shows up in real losses for shareholders.
A Hot AI IPO Has Lost Most of Its Debut Value The latest blow involved NVIDIA (NASDAQ:NVDA), via a SemiAnalysis report claiming OpenAI may use NVIDIA GPUs instead of Cerebras hardware for the “Ultrafast” mode of GPT-6.1 Sol. Meanwhile, 19.4 million shares became eligible for trading as post-IPO lock-ups expired. The stock fell 16.61% over the past week and 43.41% over the past month. It has dropped 62.07% from $311.07 at its debut and recently reached a 52-week low of $115.13.
The selloff is specific to Cerebras. Over the same month, the S&P 500 moved -0.04%.
Fundamentals had already started the slide. Second-quarter GAAP revenue of $180.11 million missed the $193.55 million consensus. GAAP EPS of -$2.98 missed the -$0.1801 estimate, mostly because of $377.0 million in stock-based compensation. Management guided third-quarter core gross margin to 38% to 40% and said it expects that to be the low point.
Analysts Still Point to a $25.4 Billion Backlog The bullish argument begins with $25.4 billion in remaining performance obligations. That figure excludes any AWS or other hyperscaler business. Management plans to “more than triple our core revenues in ’27”. Core revenue already rose 103% to $209.87 million last quarter. The CEO said, “Looking forward, we see unbound demand for fast inference.”
UBS makes its thesis on three points: the wafer-scale engine’s speed advantage over GPU clusters, contract backlog visibility, and hyperscalers diversifying away from GPU supply bottlenecks.
Several catalysts are scheduled. The disaggregated inference product with Advanced Micro Devices (NASDAQ:AMD) is due to deploy in Q4. AWS Bedrock availability follows in Q1 2027, and revenue from other hyperscalers should start in mid-2027. Management is aiming core gross margin of 60% plus over time.
Analyst view remains firmly positive. Three analysts rate it Strong Buy, seven rate it Buy, one rates it Hold, and none rate it Sell. The 2027 EPS estimate rose to $1.2737 from $0.9613 60 days ago. That came from nine upward revisions and no cuts. Those revisions show no reaction yet to the OpenAI report. Treat the targets as one data point among many.
Cerebras Fell Hardest While NVIDIA and AMD Slipped The rest of the group fell far less than Cerebras.
NVIDIA slipped 3.01% over the past month but is up 19.02% this year. At $221.97, it sits below a $328.72 aiming, which meaning 48.1% upside. It has 10 Strong Buys, 49 Buys, two Holds, and one Sell. That upside is far smaller than Cerebras’, and NVIDIA is also the reported alternative for the OpenAI work.
AMD fell 11.39% over the past month but remains up 158.09% this year. At $552.72 against a $636.21 aiming, implied upside is 15.1%. It has five Strong Buys, 40 Buys, and 11 Holds.
Cerebras has by far the largest analyst-implied upside in the group. That gap reveals how much execution risk investors see in the smaller company.
A 62% Slide Against a Rising S&P 500 At $117.98, Cerebras trades well below the $282.55 consensus of 11 analysts, meaning 139.5% upside. Shares are down 62.07% since the debut. The S&P 500 has gained 13.37% year to date.
The balance sheet gives the company room to wait. Cash and equivalents total $6.74 billion, and the $850 million revolver remains undrawn. Analysts expect revenue to rise from $887 million this year to $2.95 billion in 2027.
OpenAI Is the Swing Factor for This Rebound The recovery case strengthens if the third-quarter report meets the $214 million to $216 million core revenue guidance and OpenAI confirms its 750 MW, $20 billion-plus commitment. The case weakens if OpenAI switches high-speed inference to NVIDIA. The backlog depends heavily on one customer, and stock-based compensation keeps GAAP losses deep.
I am cautiously bullish. The backlog, cash position, and rising estimates support a recovery. Still, I would want management to address the OpenAI report directly before believing the Street’s targets.
Contact [email protected] for any questions or corrections.
Akcie společnosti Cerebras (CBRS) za uplynulý měsíc klesly o 25,3 % v důsledku tlaku na ziskové marže, přesto tržby ve druhém čtvrtletí roku 2026 vzrostly o 103 % na 209,9 milionu USD.
Key Takeaways CBRS shares fell 25.3% in a month amid rising costs and margin pressure.
Cerebras' Q2 core revenues surged 103% on strong AI demand.
CBRS' $25.4 billion backlog supports growth despite margin concerns.
Cerebras (CBRS - Free Report) shares have plunged 25.3% in the past month, underperforming the broader Zacks Business Services sector, which returned 0.3%.
The company’s shares have also underperformed its competitors, which include NVIDIA (NVDA - Free Report) , Advanced Micro Devices (AMD - Free Report) , and Intel (INTC - Free Report) in the AI space. Shares of NVIDIA and Advanced Micro Devices gained 1.6% and 9.7%, respectively, while Intel lost 5.6% over the past month.
The underperformance can be attributed to near-term margin pressure from higher costs associated with renting back systems to expand its cloud capacity. Data center availability constraints and deployment delays could limit revenue growth, while significant investments in manufacturing and infrastructure weigh on profitability. Heavy dependence on OpenAI poses customer concentration risks.
CBRS Stock Performance
Image Source: Zacks Investment Research
However, Cerebras is benefiting from surging demand for high-speed AI inference, expanding cloud deployments and strategic partnerships with hyperscalers. Growing data center capacity, manufacturing expansion and a strong backlog are supporting its long-term growth prospects.
CBRS Benefits From Strong AI Demand and Backlog GrowthCerebras is benefiting from robust demand for artificial intelligence (AI) infrastructure, driven by the rapid adoption of high-speed inference across enterprises, hyperscalers and AI developers. The company’s second-quarter 2026 core revenues surged 103% year over year to $209.9 million, reflecting strong demand for its AI computing solutions. Core cloud and other services revenues jumped 287% to $127.7 million, supported by expanding OpenAI deployments and increased cloud customer usage.
The company is aggressively expanding its data center footprint to capitalize on increasing AI infrastructure investments. The company secured more than 600 megawatts of data center capacity, either operational or under contract for delivery by the end of 2027. Its manufacturing expansion initiatives, supported by partnerships with Flex, Sanmina and TSMC, are expected to increase manufacturing capacity by more than tenfold in 2026. These investments position Cerebras to address growing customer demand and accelerate revenue growth.
Strategic collaborations with OpenAI, Amazon Web Services (AWS) and other hyperscalers further strengthen Cerebras’ growth prospects. Its partnership with OpenAI is supporting strong demand for high-speed AI inference, while AWS integration through Amazon Bedrock, expected to become generally available in the first quarter of 2027, should expand enterprise adoption. Growing customer engagements across AI coding, agentic workflows and cybersecurity provide additional opportunities to diversify its revenue streams.
Cerebras’ strong backlog also supports future upside. Remaining performance obligations stood at $25.4 billion as of June 30, 2026, supporting investments in infrastructure and manufacturing expansion. The company expects core revenues to more than triple in 2027, followed by significant growth in subsequent years. Expanding adoption across AI coding, agentic workflows and cybersecurity applications is expected to strengthen Cerebras’ long-term growth trajectory.
CBRS’ Estimate Revisions Show Improving TrendCerebras robust AI infrastructure demand, expanding capacity, strategic partnerships and strong revenue visibility are expected to benefit the company’s top-line growth. For the third quarter of 2026, Cerebras expects core revenues to be in the range of $214-$216 million.
The Zacks Consensus Estimate for third-quarter 2026 loss is pegged at 13 cents per share, narrower than 32 cents over the past 90 days.
The consensus estimate for CBRS’ 2026 loss is pegged at 52 cents per share, narrower than a loss of 89 cents per share over the past 90 days.
CBRS Grapples With Rising Costs and Fierce CompetitionDespite CBRS’s expanding AI Infrastructure portfolio, the company is suffering from rising infrastructure investments and near-term margin pressure associated with its aggressive capacity expansion. In the second quarter of 2026, core gross margin declined 590 basis points (bps) sequentially to 40.6% as Cerebras temporarily rented systems back from customers to satisfy strong inference demand.
The company expects the third quarter of 2026 to represent the trough, with core gross margin guided to 38-40%, while core operating margin is expected to deteriorate to negative 25-23% from negative 16% in the second quarter of 2026. Although management expects margins to recover as higher-cost rented capacity is replaced by Cerebras-owned systems, near-term margin pressure likely tempered enthusiasm about the revenue outlook. For 2026, Cerebras now expects core gross margin between 41% and 43%, while operating margin is in the negative 19-17% range.
Stiff competition from companies like NVIDIA, Advanced Micro Devices and Intel also remains a concern. NVIDIA dominates the AI GPU market with its Blackwell, Hopper and DGX/NVL systems used for AI training and inference. Advanced Micro Devices’ MI300 and MI350 accelerator families are competing with CBRS in hyperscale AI infrastructure and enterprise AI clusters. Meanwhile, Intel’s Gaudi AI accelerators target enterprise AI training and inference as a lower-cost GPU alternative.
Cerebras shares are also trading at a premium, as suggested by the Value Score of D.
CBRS Stock: Here’s Why You Should HoldCerebras is benefiting from strong demand for fast inference, a $25.4 billion RPO, rapidly expanding manufacturing and data-center capacity, improving earnings estimates and partnerships that could broaden its customer base.
Moreover, Wall Street’s consensus price target implies roughly 104.13% upside from current levels.
It's not uncommon for the stock price of an initial public offering (IPO) to drop 50% from its first-day close. In fact, 38.5% of IPO stocks since 1975 saw their share price cut in half after three years of public trading, according to data from economist and University of Florida professor Jay Ritter.
So, the 52% drop in Cerebras (CBRS +0.49%), one of the hottest artificial intelligence IPOs of 2026, isn't too out of the ordinary. The good news for investors is that analysts are still extremely bullish on the stock, with a median price target roughly double its current price.
Here's a closer look at Cerebras, what caused its drop, and whether the analysts covering it are right.
Image source: Getty Images.
The big drop in the big chipmaker Cerebras made its market debut in May, closing its first day of trading at $311.07 per share, 68% above its IPO price. The big pop in its price reflects excitement around the company, which designs multi-core systems that fill an entire 12-inch silicon wafer. Cerebras' chip architecture aims to solve the biggest challenge in AI inference speeds, transferring data between chips, by keeping everything on a single piece of silicon.
The technology attracted the attention of OpenAI, which signed a deal to use Cerebras' chips for inference. Amazon has also agreed to use Cerebras chips in its Amazon Web Services systems, pairing them with its own Trainium chips to use the best chips available for specific tasks.
But the excitement around Cerebras didn't last long. The stock sold off throughout May and June, dipping below its IPO price. While the chipmaker recovered somewhat alongside the rest of the industry in August, it disappointed investors with its second-quarter earnings report. That sent the stock plummeting 20%.
CBRS Cerebras Systems$142.17+$0.69 (+0.49%)
NASDAQ · As of 4:00 PM ET 10/15/26
The report showed Cerebras rapidly transitioning from selling its hardware directly to customers, as in its deal with Amazon, to standing up its own cloud computing service using its chips, as in its deal with OpenAI. Cloud revenue climbed 281% year over year while hardware sales dropped 23%. Cloud now accounts for two-thirds of revenue, up from one-third last year. Analysts were expecting hardware sales to hold up better.
The next big drop came when reports indicated that OpenAI is running its newest "Ultrafast" model using Nvidia GPUs instead of Cerebras' chips. That cast doubt on Cerebras' ability to execute on its contract with the frontier AI lab. OpenAI CEO Sam Altman reassured investors that Cerebras remains a key partner, but the news highlighted the significant customer concentration risk for Cerebras.
OpenAI has committed to spending up to $20 billion with Cerebras. Through June, it's spent just $74 million. The OpenAI deal makes up the bulk of the company's $25.4 billion backlog as of the end of the second quarter.
Of the 14 analysts covering the stock, not one rates it a sell. The median price target among them is $295, about double the current stock price.
Indeed, there's a lot of potential upside in the stock. After all, it has $25 billion in contracted revenue, while its current annual run rate sits around $720 million. The company could easily increase revenue tenfold if it can execute.
That remains the biggest question for Cerebras: execution. Building its own data centers and renting them out to customers is a much different business than making chips and selling them to third parties. There are major capital requirements as well, adding another wrench in the mix.
That said, management believes it's mostly insulated from supply constraints, using slightly older chip fabrication processes and avoiding the need to buy memory chips, which are in short supply. As such, it should have few problems ensuring it has enough chips for its data centers to meet the demands of its OpenAI contract.
The news that OpenAI is using Nvidia chips for its latest model isn't as big a threat as the actual challenge of getting data centers, power, and chips all in place to serve its biggest potential customer. Investors should look for signs that Cerebras can meet OpenAI's demands before trusting analysts that the stock can double from here.
Cerebras ve středu uvolní k prodeji až 19,4 milionu akcií v rámci postupného ukončování období zákazu prodeje akcií po IPO, což může zvýšit prodejní tlak.
Cerebras Systems Inc. (NASDAQ:CBRS) faces more potential selling when up to 19.4 million more shares become eligible for sale on Wednesday under the AI chipmaker’s staggered IPO lock-up.
The stock is on watch after sliding 10.7% to $146.62 on Monday, its lowest close yet, according to Benzinga Pro market data. Shares are down about 58% from their $350 opening price in May and trade roughly 21% below the $185 IPO price.
CBRS stock is moving. See the real-time price action here. Lock-Up Clock TicksCerebras set up its lock-up to release insider stock in stages rather than all at once, similar to SpaceX. The releases were planned in several rounds running through the end of October, Axios reported at the time of the IPO.
The last tranche of this size arrived Sept. 30. Up to 19.4 million shares held by directors, officers, employees and other holders unlocked that day, equal to 8% of shares outstanding. The stock fell 8.9% that day.
Before that, up to 14.6 million shares had been freed every two weeks since Aug. 19.
Insiders have been selling. CEO Andrew Feldman and CTO Sean Lie sold more than $240 million of Class A shares between Aug. 20 and Sept. 25 under trading plans, according to Benzinga’s insider sale data.
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OpenAI Doubts LingerThe unlock comes on top of questions about Cerebras’ biggest customer. On Sept. 30, research firm SemiAnalysis said OpenAI would run the “Ultrafast” mode of GPT-6.1 Sol on NVIDIA Corp. (NASDAQ:NVDA) GPUs rather than on Cerebras hardware. Cerebras fell nearly 20% that week and closed at $166.43 on Oct. 2.
OpenAI CEO Sam Altman pushed back late that Friday.
“There is some speculation about our partnership with Cerebras. Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed,” he wrote on X. The stock jumped 9% the following Monday. His post did not say which chips run the new tier.
Citi analysts said their 2026-2028 revenue outlook for Cerebras was “unchanged.” They called it “too early to read much into” the rollout, CNBC reported.
The two companies are closely tied. Cerebras has a multiyear deal worth more than $20 billion to supply OpenAI with 750 megawatts of computing power. OpenAI also lent Cerebras $1 billion and holds warrants for up to 33.4 million shares.
Altman Bounce FadesCerebras’ Altman bounce didn’t hold. Shares have fallen about 19% since closing at $181.55 on Oct. 5.
Pressure across the sector added to the losses. AI stocks slid Oct. 8 after reports that OpenAI’s annualized revenue at the end of September was about $18 billion below earlier figures.
On Monday, Microsoft Corp. (NASDAQ:MSFT) unveiled its Maia 300 chip and said it would become the main inference system for Microsoft’s own products. The Philadelphia Semiconductor Index dropped 2.7% the same day.
Inference is the core of Cerebras’ pitch, and each new in-house chip from a big cloud company makes the competitive question harder to ignore.
Cerebras is now worth about $34.8 billion. It was valued near $95 billion after its first day of trading.
CBRS Stock Price Activity: Cerebras stock was up 0.49% at $147.34 at the time of publication on Tuesday, according to Benzinga Pro.
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Photo: Courtesy Cerebras
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Shares of Cerebras Systems Inc. (NASDAQ:CBRS – Get Free Report) reached a new 52-week low during mid-day trading on Monday. The company traded as low as $155.50 and last traded at $152.4270, with a volume of 2,101,527 shares changing hands. The stock had previously closed at $164.17.
Analysts Set New Price Targets
A number of equities research analysts recently weighed in on CBRS shares. Weiss Ratings cut Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a report on Friday, September 25th. Wedbush lifted their price objective on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a report on Thursday, August 13th. Mizuho decreased their target price on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. Freedom Capital upgraded Cerebras Systems from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 2nd. Finally, Citigroup lowered their target price on Cerebras Systems from $340.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Cerebras Systems presently has an average rating of “Moderate Buy” and an average price target of $299.90.
Get Our Latest Analysis on CBRS
Cerebras Systems Trading Down 7.3%
The firm has a market capitalization of $36.16 billion and a P/E ratio of -1,896.19. The company has a 50 day simple moving average of $199.54. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.
Cerebras Systems (NASDAQ:CBRS – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($2.77). The firm had revenue of $209.87 million during the quarter. Cerebras Systems’s revenue was up 74.3% compared to the same quarter last year. On average, equities research analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current fiscal year.
Insider Transactions at Cerebras Systems
In other news, CTO Sean Lie sold 120,000 shares of the company’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the completion of the transaction, the chief technology officer owned 309,569 shares of the company’s stock, valued at $64,690,633.93. This represents a 27.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares of the company’s stock, valued at approximately $36,166,763.10. This represents a 22.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,864,452 shares of company stock worth $387,680,754 in the last quarter.
Institutional Investors Weigh In On Cerebras Systems
Several hedge funds have recently modified their holdings of the stock. Value Aligned Research Advisors LLC acquired a new position in shares of Cerebras Systems in the 2nd quarter valued at $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems in the second quarter valued at approximately $194,853,000. State Street Corp acquired a new position in Cerebras Systems during the second quarter valued at approximately $105,343,000. Dragoneer Investment Group LLC acquired a new position in Cerebras Systems during the second quarter valued at approximately $88,400,000. Finally, Montanova Capital LLC purchased a new stake in Cerebras Systems during the second quarter worth approximately $37,990,000.
Cerebras Systems Company Profile
(Get Free Report)
Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company’s technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.
Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.
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Buy a quality AI-infrastructure/semicap basket instead of CBRS—e.g., NVIDIA (NVDA) and Broadcom (AVGO). The news highlights that “AI infrastructure” winners are those that convert demand into cash; CBRS is priced for exceptional execution. Second-order effect: capital rotates toward firms with proven cash generation and lower execution risk as investors de-risk AI capex exposure.
Key Risk: AI demand shifts away from cash-generating incumbents toward newer infrastructure players, compressing NVDA/AVGO relative performance.
CBRS short
Sell Cerebras (CBRS). The DCF base case still implies overvaluation for risk-averse investors: even after the selloff, fair value is about $96 vs a much higher market price, and ~72% of value depends on terminal assumptions. The company must rapidly turn heavy AI infrastructure spending into durable free cash flow, which is exactly what has been missing so far.
Key Risk: They prove sustained free-cash-flow margins quickly (not just revenue), making the terminal-value assumptions conservative.
Cerebras Systems CBRS shares are extending losses on October 12th as investors continue to reassess the artificial intelligence (AI) infrastructure company’s future prospects.
CBRS is now trading at about half its price at the start of 2026, yet an illustrative discounted cash flow (DCF) analysis suggests it’s still overvalued for risk-averse investors.
For those interested in buying the dip in Cerebras stock, the central question is whether rapid sales expansion can ultimately translate into durable cash generation.
Cerebras Systems’ latest outlook targets $880 million – $890 million in 2026 core revenue, while management plans to more than triple revenue in 2027.
Its $25.4 billion in remaining performance obligations (RPOs) provides substantial visibility into contracted business, although those commitments are not equivalent to immediate cash flow.
DCF’s base case assumes “economic revenue” reaches $2.8 billion next year, $10.5 billion in 2031, and $19.2 billion by 2036.
It also assumes free cash flow (FCF) margin improves from negative 25% to positive 22% over that period.
While these assumptions aren’t official company forecasts, they’re still ambitious given Cerebras must absorb considerable investment needed to expand computing capacity before delivering cash to shareholders.
Discounting projected cash flows at 12% – with perpetual growth of 3% after 2036 – produces an estimated enterprise value of $21.2 billion.
Adding $6.2 billion in assumed adjusted net cash brings equity value to roughly $27.4 billion, and dividing that figure by an assumed 285 million diluted shares yields $96 fair value for CBRS stock.
The cash adjustment allows for spending after June, while the share count incorporates an allowance for warrants and employee equity. Neither represents a reported October balance-sheet figure.
Alternative scenarios demonstrate the uncertainty: weaker growth and profitability produce a value near $34 – while exceptional growth and a 30% terminal FCF margin support about $258 per share.
The DCF model suggests Cerebras shares look expensive under base assumptions, despite the selloff.
Holding margins, dilution, and discount rates constant, justifying $150.85 would require a revenue trajectory about 74% above the base case – reaching roughly$33 billion in 2036, alongside $7.3 billion in annual free cash flow.
Stronger margins or lower investment requirements could also support today’s valuation. However, about 72% of base-case enterprise value comes from the terminal value – making the result highly sensitive to distant expectations.
Investors should therefore treat $96 as a scenario estimate, rather than a precise price target.
In short, Cerebras Systems’ opportunity remains rather huge – but the company’s current price still demands considerable long-term success.
That said, Wall Street rates it at Buy currently, with a bullish mean price target of about $291.
Cerebras Systems Inc. (NASDAQ:CBRS) has had a busy stretch that included a sell-off on reports about the hardware behind OpenAI’s newest model and a rebound after OpenAI CEO Sam Altman called the chipmaker a "close partner."
Cerebras shares are approaching critical lows. Why did CBRS hit a new low? Shares Fall on a Report That OpenAI’s Fastest Tier Runs on Nvidia ChipsOn September 30, shares traded lower after SemiAnalysis reported that OpenAI’s GPT-6.1 Sol Ultrafast tier is running on Nvidia GPUs instead of Cerebras hardware. Cerebras had powered the Ultrafast tier for the previous version, GPT-5.6 Sol, at up to 750 tokens per second starting in August. Neither OpenAI nor Cerebras has confirmed what hardware serves the new tier. Shares closed Friday at $166.43, below Cerebras’ $185 IPO price.
Altman Calls Cerebras a "Close Partner" and Shares ReboundLate Friday, Oct. 2, Altman posted on X: "There is some speculation about our partnership with Cerebras. Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed." The post did not say which chips run GPT-6.1 Sol Ultrafast. Shares rose about 9% on Monday, Oct. 5. Barclays analyst Tom O’Malley said OpenAI’s relationship with Cerebras "remains strong," according to Investing.com.
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Cerebras Shares Edge LowerCBRS Price Action: At the time of publication, Cerebras shares are trading 1.56% lower at $161.61, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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When investors think about the artificial intelligence boom, two names tend to dominate conversations. They are Nvidia (NVDA -0.52%), which supplies the graphics processing units (GPUs) powering much of the AI industry, and Broadcom (AVGO +0.39%), which helps tech companies develop custom silicon. But there's a lesser-known player that could be the industry's best-kept secret: Cerebras Systems (CBRS -2.23%).
Why speed is central to Cerebras' strategy With Cerebras, it all starts with speed. Instead of the usual approach to chip design, Cerebras built its business around a large processor designed specifically for artificial intelligence: its Wafer-Scale Engine.
Image source: Getty Images.
The chip combines computing cores, memory, and communication capabilities into a single piece of silicon, reducing the need to move data between separate components. Through this approach, Cerebras aims to alleviate bottlenecks that can slow AI workloads.
That matters because training an AI model is only one part of the equation. Once a model is deployed, it's used for AI inference, answering questions, writing code, and even executing tasks for millions of users in real time. In fact, inference is becoming one of the fastest-growing trends in the AI market today.
Cerebras is investing in that shift by working to make AI responses faster.
As AI applications become more interactive, speed could become a huge competitive advantage. It could make conversations with AI chatbots faster and more fluid, while enabling AI agents to complete multi-step tasks more quickly, across domains ranging from software development and business workflows to scientific research.
The company's approach is already attracting attention from major AI players, including OpenAI.
OpenAI's partnership puts Cerebras on the map Getting a major AI company to adopt its technology is a huge vote of confidence for any chipmaker. That's why Cerebras' relationship with OpenAI stands out.
The companies recently announced a multi-year agreement to deploy 750 megawatts of Cerebras compute capacity for OpenAI customers, with deployment planned in stages through 2028. The goal is to make AI responses faster, particularly for workloads that generate long answers, assist with coding, and power AI agents.
The partnership took an even bigger turn in August, when Cerebras announced that it's powering the Ultrafast mode for OpenAI's GPT-5.6 Sol. The company says the service can deliver up to 750 output tokens per second and run up to 14 times faster than with standard processing. This demonstrates how Cerebras' specialized hardware can greatly improve the user experience with advanced AI models.
For investors, the important point is that Cerebras' technology is already powering real commercial AI services, backed by one of the leading AI model providers. But proving its technology works is only part of the equation.
The company is also racing to build out its next-generation hardware.
An expanded technology portfolio Cerebras recently announced its CS-4 system, which it says can deliver up to twice the speed of its predecessor, along with improved efficiency and faster token generation. CS-4 is part of a broader platform that Cerebras says will allow it to upgrade computing, cooling, and power delivery more independently. That matters because performance doesn't depend on chips alone.
Data centers must also deliver enough power, move data efficiently, and cool dense hardware. As a result, by adopting this design, the company is trying to improve the economics of running AI at scale. That makes Cerebras' technology better suited for large deployments, especially as AI data centers become bigger and more complex.
For investors looking beyond the biggest chipmakers, this continued product development is another reason to watch the company.
Is Cerebras stock a buy right now?
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Nvidia and Broadcom may be providing much of the infrastructure behind AI, but the AI boom is also creating opportunities for lesser-known chipmakers. That could mean room for more than one winning chip design.
Looking ahead, Cerebras' focus on speed and inference could give it a major role in the next phase of the AI boom, especially as it launches broader platforms that can scale with AI data centers.
If demand for faster AI keeps growing, Cerebras could turn out to be one of the market's strongest under-the-radar chip suppliers.
SummaryCerebras targets 20x throughput improvement by 2027, while CS-4 promises substantial inference performance gains across leading AI models.Cerebras holds $25.4 billion in RPO, although pass-through costs, OpenAI warrants, and customer concentration complicate its economic value.Core gross margin reached 40.6% in Q2, with management targeting above 60% as lower-cost owned infrastructure comes online.Consensus sees revenue reaching $7.54 billion and EPS hitting $6.15 by 2028, materially compressing today's demanding valuation. akinbostanci/iStock via Getty Images
My view on Cerebras Systems (CBRS) lies somewhere in the middle of growing conviction in the company and skepticism about the stock. While I'm becoming more and more convinced about the validity
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Společnost Cerebras ve 2. čtvrtletí 2026 meziročně zvýšila tržby o 74,3 % na zhruba 210 milionů USD, k čemuž přispěla poptávka po hardwaru pro AI inferenci.
Investors evaluating the artificial intelligence (AI) hardware sector often find themselves cornered into a single, dominant trade. Finding a credible, publicly traded alternative to established GPU leaders is a persistent challenge for investors seeking more exposure to AI infrastructure.
The search for a viable secondary layer in the silicon stack is leading institutional money toward Cerebras Systems NASDAQ: CBRS. Investors are pricing in Cerebras's unique wafer-scale architecture as a legitimate alternative to standard GPU systems. Driven by key endorsements from hyperscale partners and a heavily capitalized balance sheet, Cerebras provides an alternative for high-speed inference workloads.
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The Hardware Shift Funding Next-Gen AIThe pricing power of established chipmakers is creating friction for hyperscalers trying to build next-generation AI models. While traditional GPUs remain the standard for training large language models, the inference phase, where models actively generate responses for end users, requires a different focus on latency and speed.
Data center operators are increasingly constrained by the physical limitations of linking thousands of individual chips together to process these workloads. The energy requirements, physical space, and cooling costs associated with traditional computing clusters are pushing capital out of generalized hardware and into specialized, purpose-built processors. Investors are rewarding semiconductor sector designers that can bypass traditional network fabric bottlenecks and deliver raw processing speed at scale.
Bypassing the Interconnect Speed LimitInvestors received a clear signal regarding this hardware shift in late September. Following industry rumors that OpenAI might rely exclusively on standard GPUs for upcoming faster models, OpenAI CEO Sam Altman publicly reaffirmed Cerebras Systems as a close partner. This confirmation of deep, ongoing engagement focused on AI processing speed quickly reversed a temporary stock sell-off and provided verifiable proof of concept for Cerebras hardware.
Cerebras Systems Inc. (CBRS) Price Chart for Thursday, October, 8, 2026
Cerebras's edge centers on its Wafer-Scale Engine. Standard computing systems connect dozens of individual chips, forcing data to move between processors and external high-bandwidth memory. Cerebras instead places computing cores and memory on a single large silicon wafer.
That design keeps more data close to the processor, reducing the delays created when information has to move between separate chips and memory systems. By relying on local static memory instead of routing data through network fabrics to external bandwidth arrays, Cerebras can reduce inference latency to levels that traditional GPU clusters may struggle to match.
This technological advantage is translating directly into financial data. In the second quarter of 2026, Cerebras reported an approximate 74.3% year-over-year revenue increase, reaching roughly $210 million. This level of top-line growth suggests hyperscale clients and enterprise customers are actively spending on alternatives to traditional AI infrastructure.
Funding the AI Future With Zero Liquidity PanicDeveloping specialized semiconductors from the ground up requires significant spending. Cerebras reported a net loss of about $450 million in its most recent quarter, a figure that naturally invites scrutiny regarding execution risk and corporate cash burn. The balance sheet suggests a foundation built to withstand heavy manufacturing and research cycles without near-term shareholder dilution.
Large-scale enterprise clients require assurance that their hardware partners will survive long enough to provide multi-year maintenance and software support. With an approximate $4.7 billion capital raise during its May 2026 initial public offering, Cerebras currently holds roughly $7.5 billion in cash and short-term investments against manageable debt of about $0.8 billion.
This liquidity is paired with an unlevered balance sheet, with a debt-to-equity ratio of about 0.02 and a current ratio near 5.82. The current cash burn rate represents capitalized growth rather than an immediate liquidity crisis. Cerebras has the financial runway to scale hardware production and fulfill its multi-billion-dollar client backlog without the immediate capital constraints that often hinder younger technology hardware firms.
ETF Accumulation Offsets Post-IPO SellingOne factor shaping Cerebras' near-term trading environment is the IPO lock-up expiration expected in early November. Approximately 30 million shares will become eligible for public trading, representing a notable portion of the roughly 237 million total shares outstanding.
Ahead of this event, corporate insiders have steadily sold stock. Insider sales over the trailing 12 months have surpassed $400 million. That is not unusual after a company goes public, as early investors and executives gain the opportunity to cash out part of their holdings, but it does add more shares to the market.
While insider shares are entering the market, buy-side absorption remains active and organized. In early October, Cathie Wood's ARK Invest allocated roughly $20 million to acquire over 117,000 shares across its exchange-traded funds. Additional tracking data points to steady accumulation from institutional anchors like Silverleafe Capital Partners LLC, alongside nine other major institutional funds actively adding to their positions this quarter. This institutional demand suggests professional funds view current pricing as a reasonable entry point and are readily absorbing shares distributed by early investors to build long-term holdings.
Building a Position Ahead of the Next AI WaveValuing a high-growth semiconductor firm requires looking beyond traditional earnings multiples. Cerebras Systems currently trades at a price-to-sales multiple near 54x, carrying a market capitalization of about $41 billion. While the valuation premium is high, it reflects forward-growth expectations tied to disrupting the large data center infrastructure market.
69th Percentile
Moderate Buy
71.3% Upside
Healthy
N/A
0.18 Selling Shares
Growing
See Full Analysis
Wall Street analysts maintain a generally favorable outlook on Cerebras's trajectory. Cerebras holds a consensus Moderate Buy rating, outperforming the broader technology sector's average Hold designation. Sell-side desks issued high-conviction upgrades amid recent selling pressure. Jefferies upgraded Cerebras to Outperform, helping establish an average analyst price target near $300. If realized, this suggests a potential upside of nearly 70% from early October trading levels around $177.
Market mechanics remain stable underneath the price action. Short interest sits at a healthy 5.39%, suggesting recent price rebounds are driven by spot buying from institutions rather than temporary short-covering squeezes.
Investors navigating the ongoing AI hardware expansion might consider how a specialized processor company balances a tech-heavy portfolio. While customer concentration and supply-chain execution require careful monitoring, a capitalized balance sheet, verifiable hyperscaler partnerships, and steady institutional inflows present a clear fundamental framework. Those looking to diversify away from single-vendor reliance may find that monitoring trading volume and institutional support around the upcoming lock-up expiration provides valuable insight into Cerebras Systems' next long-term base.
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Shares of Cerebras Systems Inc. (NASDAQ:CBRS – Get Free Report) shot up 8.8% during trading on Monday after Jefferies Financial Group upgraded the stock to an outperform rating. The stock traded as high as $184.79 and last traded at $181.0320. 4,795,897 shares traded hands during trading, a decline of 33% from the average session volume of 7,127,809 shares. The stock had previously closed at $166.43.
A number of other equities analysts have also issued reports on CBRS. Mizuho reduced their target price on shares of Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, August 13th. Morgan Stanley upped their price target on Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. TD Cowen began coverage on shares of Cerebras Systems in a report on Monday, June 8th. They issued a “buy” rating and a $275.00 target price on the stock. Finally, Citigroup decreased their price target on shares of Cerebras Systems from $340.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $299.90.
Get Our Latest Stock Analysis on CBRS
Insiders Place Their Bets In other Cerebras Systems news, CAO Yagnesh Patel sold 1,320 shares of the business’s stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $204.50, for a total value of $269,940.00. Following the sale, the chief accounting officer owned 15,356 shares in the company, valued at approximately $3,140,302. The trade was a 7.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $210.30, for a total transaction of $10,515,000.00. Following the completion of the sale, the director owned 171,977 shares in the company, valued at $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,864,452 shares of company stock worth $387,680,754 in the last 90 days. Hedge Funds Weigh In On Cerebras Systems A number of large investors have recently modified their holdings of CBRS. State Street Corp acquired a new position in Cerebras Systems during the second quarter valued at approximately $105,343,000. Situational Awareness LP acquired a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $2,210,000. Proficio Capital Partners LLC acquired a new position in shares of Cerebras Systems during the 2nd quarter worth approximately $1,383,000. Ratan Capital Management LP bought a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $4,641,000. Finally, UNC Management Company Inc. acquired a new stake in shares of Cerebras Systems in the 2nd quarter valued at approximately $4,439,000.
Cerebras Systems Price Performance The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The company’s 50 day simple moving average is $201.27. The stock has a market capitalization of $43.11 billion and a price-to-earnings ratio of -2,262.50.
Cerebras Systems (NASDAQ:CBRS – Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The company’s quarterly revenue was up 74.3% compared to the same quarter last year. Analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.
Cerebras Systems Company Profile (Get Free Report)
Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company’s technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.
Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.
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Cerebras Systems Inc. (NASDAQ:CBRS) shares are soaring Monday after a social media post from OpenAI CEO Sam Altman appeared to boost investor sentiment.
Cerebras Systems stock is charging ahead with explosive momentum. Why is CBRS stock up today? Altman Addresses Speculation About OpenAI’s Cerebras PartnershipAltman took to social media to respond to chatter about OpenAI’s ties to Cerebras. He said that “Cerebras is a close partner,” and that the two companies “have a deep engagement pushing on the frontiers of speed.”
The post landed after reports last week that OpenAI’s newly unveiled GPT-6.1 Sol Ultrafast model doesn’t run on Cerebras chips. Those reports had weighed on the stock.
A Bounce After a Rough StretchToday’s gain comes after a rough month for Cerebras. The stock is down roughly 14.6% over that period. That makes the move look more like a positive correction than a fresh breakout. Shares also still sit below the $185 IPO price.
Last Wednesday’s decline came as a new wave of shares hit the market. Cerebras structured its post-IPO lockup as 11 separate releases rather than one 180-day freeze. Three smaller unlocks of 14.6 million shares each began in August. Last week’s release added about 19.4 million shares and was the first of three larger waves.
What Cerebras Brings to the AI MarketBehind those share-supply headlines is a company focused on large-scale AI computing. Cerebras builds very large systems for training and running AI models. The company says it makes the world’s fastest AI infrastructure, including the world’s largest semiconductor and the hardware that powers, cools and feeds data to it.
Cerebras also writes software that ties those systems together into supercomputers. That software is built to work with common machine learning frameworks like PyTorch. Customers rely on the systems to train large models and run inference at speeds the company says rival approaches have trouble matching.
CBRS Shares Are FlyingCBRS Price Action: Cerebras shares were up 9.73% at $182.63 at the time of publication on Monday, according to Benzinga Pro.
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UBS ponechává na Cerebras Systems doporučení Buy a cílovou cenu 291,64 USD, což implikuje 75,2% růst. Firma zároveň zvýšila výhled tržeb z hlavní činnosti na rok 2026 na 880–890 milionů USD.
Cerebras stock cratered to a post-IPO low while rivals like NVIDIA and AMD surged, yet one of the world's largest banks just doubled down with a price target that implies the market is deeply, fundamentally wrong about this AI chip…
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Cerebras Systems (NASDAQ:CBRS) currently trades at $166.43. The average analyst price target is $291.64, which implies 75.2% upside.
Cerebras makes wafer-scale AI chips and runs the Cerebras Inference Cloud, a service built for very fast AI inference. Its customers include OpenAI, AWS, G42, Figma (NYSE:FIG) and GSK (NYSE:GSK | GSK Price Prediction). It has also signed a multi-year OpenAI deal for 750 MW of inference compute valued at more than $20B.
UBS, one of the world’s largest banks, has set the most bullish price target at $330.00. That works out to 98.3% upside, so UBS expects the stock to roughly double. Either the market is missing a hypergrowth story or analysts are anchored to the excitement around the IPO.
Hot IPO Hits a Post-IPO Low Cerebras fell 19.5% in five sessions and hit a post-IPO low. Shares now trade below the IPO price and are down 46.5% from the first-day close of $311.07.
Second-quarter results showed the crack. GAAP revenue of $180.11M missed the $193.55M consensus, though core revenue grew 103%. Core gross margin slipped to 40.6% from 46.5% the prior quarter. Third-quarter guidance calls for 38% to 40% margin.
The selloff is specific to Cerebras. During the same week, NVIDIA (NASDAQ:NVDA) gained 3.95%.
Why UBS Still Expects the Stock to Double UBS analyst Timothy Arcuri repeated his Buy rating and $330.00 target. His thesis: the WSE-3 chip delivers up to 6x the inference performance of GPU clusters; demand for inference workloads avoiding HBM memory bottlenecks keeps growing; and sovereign AI contracts like G42 partnerships provide revenue visibility several quarters out.
The backlog supports this. Cerebras has $25.4 billion in remaining performance obligations, excluding AWS and other hyperscalers. Management raised 2026 core revenue guidance to $880 to $890 million and expects to more than triple core revenue in 2027. The average 2027 revenue estimate is $2.95 billion, with average 2027 EPS rising to $1.2737 from $0.9573 90 days ago. Over the past 30 days there were nine up revisions and no cuts.
The catalysts have dates attached. Disaggregated inference with Helios racks from Advanced Micro Devices (NASDAQ:AMD) launches in the fourth quarter and promises 5x more throughput. AWS Bedrock availability follows in early 2027, with revenue from other hyperscalers starting in mid-2027. Management says gross margin bottoms in the third quarter and then moves toward 60% plus.
The analyst ratings are skewed:
Strong Buy: 3 Buy: 7 Hold: 1 Sell: 0 Arcuri asked on the earnings call whether OpenAI and AWS could make up about two-thirds of next year’s revenue. The CEO replied that OpenAI “will stay a big part next year.” Price targets carry real uncertainty.
Cerebras Falls While Its Chip Rivals Rally Cerebras is falling on its own while its biggest rivals rally.
NVIDIA is up 25.74% year to date at $233.95. Its average target of $327.70 implies 40.1% upside, with 10 Strong Buys, 48 Buys, 2 Holds and 1 Sell.
AMD is up 196% year to date at $633.91, above its $619.51 target. It has 5 Strong Buys, 39 Buys and 11 Holds.
Cerebras has the largest analyst-implied upside in the group. That gap reflects execution risk that its larger, profitable rivals don’t carry.
Down 46.5% Since Debut as the S&P 500 Gains 12.86% This Year At $166.43, Cerebras has 75.2% upside to the $291.64 consensus target held by 11 analysts. The stock is close to its 52-week low of $160.81 and far below its high of $386.34.
Cerebras is down 46.5% since its debut. Meanwhile, the S&P 500 is up 12.86% year to date. Cerebras trades at 58.09 times sales and 217x forward earnings.
A Rare Discount Comes With OpenAI Strings Attached The bull case improves if AWS and the AMD partnership start bringing in revenue on schedule and gross margin bottoms in the third quarter as promised. The backlog already locks in years of growth, and the 2027 estimates keep rising.
The bear case improves if OpenAI moves more work to NVIDIA or if new data centers come online late. When one customer dominates the backlog, it carries more risk than the headline figure suggests. More lockup releases could also keep pressure on the stock.
The evidence leans bullish. The discount looks too steep for a company whose revenue is about to triple, the kind of early signal we cataloged in a free playbook on spotting the next NVIDIA. Still, OpenAI concentration is the risk I’d track most closely in every earnings report.
Contact [email protected] for any questions or corrections.
Cerebras klesl pod svou IPO cenu poté, co vypršel lock-up a dva vedoucí pracovníci podali oznámení o zamýšleném prodeji akcií. Zároveň se objevila zpráva, že nejnovější rychlý model OpenAI může běžet na standardních GPU místo na hardwaru Cerebras.
Cerebras stock slipped below its IPO price on the same day insiders filed to sell and a report surfaced questioning whether its anchor customer moved its fastest model to rival hardware.
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Cerebras Systems (NASDAQ:CBRS) last traded at $177.65, down 8.87% from a $194.95 prior close. That puts the stock under its $185 IPO offer price.
The shares opened their first day of trading at $350, so early public buyers have lost most of that premium. From the May 14, 2026 close of $311.07, the stock is down 42.89%.
Three separate events landed on September 30, 2026. The post-IPO lockup ended, two senior officers filed notices of planned sales, and a secondhand report questioned whether OpenAI’s newest fast model runs on Cerebras hardware.
For a company whose IPO pitch leaned on OpenAI, that deserves examination.
What Expired, What Was Filed and What Was Only Reported A lockup bars insiders and early holders from selling for a set period after an IPO. When it ended at 6 a.m. Eastern, about 19.4 million shares became eligible for sale.
Officers also filed Form 144 notices covering about $84.3 million of stock. A Form 144 records an intent to sell; only a later Form 4 confirms an executed sale.
The third item is a SemiAnalysis claim that OpenAI’s newest ultrafast model runs on standard GPUs instead of Cerebras systems. OpenAI had previously confirmed that an earlier ultrafast model ran on Cerebras hardware.
Sizing the Insider Filings Against Cerebras Chief Operating Officer Dhiraj Mallick filed to sell 396,000 shares worth about $77.9 million. Chief Financial Officer Robert Patrick Komin Jr. filed to sell 32,500 shares worth about $6.39 million.
Most of Mallick’s shares come from options and performance-based stock awards. Against 112,247,000 shares outstanding, these notices are small next to the unlocked block.
The business underlying is growing. Second-quarter core revenue rose 103% to $209.9 million, and remaining performance obligations, meaning contracted revenue not yet recognized, reached $25.4 billion.
Why the Hardware Report Carries the Bigger Risk Insiders commonly sell when a lockup ends. The notices also leave out whether, when, or at what price any shares were actually sold.
The hardware claim cuts closer to the IPO story. OpenAI signed a multi-year deal for 750 MW of inference compute worth more than $20 billion, and CEO Andrew Feldman said on the August 12 call that OpenAI will “stay a big part next year.”
If OpenAI sends its fastest models elsewhere, that concentration becomes a liability. At 68x trailing sales, the stock has little room for doubt about its anchor customer. We reverse-engineered the characteristics earlier chip winners shared before their biggest runs in a free playbook on spotting the next Nvidia, and customer concentration is one signal worth watching.
How the Valuation Leaves CBRS Exposed to Customer Doubt The risk outweighs the reward until the picture clears. The growth is real, but a stock at 217x forward earnings needs its largest customer relationship to be secure, and right now it is questioned.
Analysts remain upbeat, with 3 strong buy and 7 buy ratings and an average target of $291.64. That optimism rests on the same OpenAI ramp now in doubt.
Form 4 filings will show whether Mallick and Komin actually sold and at what price. A direct statement from OpenAI or Cerebras on which hardware runs the new model would settle the report.
A close back above $185 alongside third-quarter core revenue inside the $214-$216 million guidance range would suggest the selloff came from lockup supply and would ease that risk.
Contact [email protected] for any questions or corrections.
Cerebras dodá startupu Gimlet Labs AI čipy a hardware s kapacitou zhruba 100 megawattů pro jeho cloudové podnikání. Systémy CS-4 má dodat během jednoho až dvou let.
Cerebras Systems (CBRS.O) plans to supply AI chips and hardware with capacity to consume roughly 100 megawatts to startup Gimlet Labs to help run its cloud computing business, the companies said on Monday.
The deal between Gimlet and Cerebras is part of rising interest from AI companies in procuring hardware that is capable of speedy AI calculations known as inference, the process in which a chatbot such as Anthropic's Claude generates a response to a user question.
Performing inference operations speedily can help in areas such as cybersecurity, voice applications and financial analysis, Gimlet CEO Zain Asgar said in an interview with Reuters. For this hardware, Gimlet plans to target selling to companies and startups that are building their entire products around AI in some way, Asgar said.
Gimlet plans to use the Cerebras hardware to run so-called frontier models — the cutting-edge AI models — that require enormous amounts of computing power to run speedily.
Cerebras plans to supply its CS-4 systems, which it unveiled over the summer, over one to two years, its CEO, Andrew Feldman, said. Gimlet plans to make the CS-4 hardware available in its cloud in 2027, the company said.
The deal is "further validation from Cerebras ... of how easy it is to deploy, even in heterogeneous environments," Feldman said, referring to installing the hardware alongside chips and systems from other companies.
Cerebras and Gimlet declined to disclose the financial terms of the deal. Gimlet will be responsible for maintaining and operating the systems once delivered by Cerebras.
OpenAI and companies such as Nvidia have recognized the importance of the ability to perform speedy inference. Earlier this year, Cerebras signed a deal to supply OpenAI with chips. And last year, Nvidia signed a licensing deal with Groq for the company's chips and hardware.
Cerebras Systems (CBRS +0.17%) expects to generate $880 million to $890 million of core revenue in 2026, an outlook management raised in mid-August. Core revenue is the artificial intelligence (AI) computing specialist's preferred non-GAAP (adjusted) measure, and it's the number I'll use throughout. It excludes data center revenue the company merely passes through to customers and adds back a noncash deduction tied to customer warrants.
I think 2027 core revenue tops $1.8 billion -- more than double this year's target. That may sound aggressive for a company that went public in May. I'd argue it's the conservative reading of Cerebras' own numbers.
After all, management's plan for next year is bigger than mine. And Cerebras closed the first half with $25.4 billion of remaining performance obligations, the value of signed customer contracts it hasn't yet turned into revenue.
The prediction doesn't lean on finding new demand. It leans on Cerebras building fast enough to serve what it has already sold.
Image source: Getty Images.
The ramp is already visibleThe second quarter offered the strongest evidence yet. Core revenue rose 103% year over year to about $210 million, accelerating from the first quarter's 92% pace. Core cloud and other services revenue (the business of renting out computing power and related services rather than selling hardware systems) grew 287% year over year to $127.7 million. The losses are shrinking, too, with Cerebras' core operating margin improving to negative 16%, from about negative 42% a year earlier. And management plans for revenue to more than triple in 2027.
Cerebras also raised its full-year target, which had been $855 million to $865 million. Its new range implies about $480 million of core revenue in the second half of the year.
And with the third quarter guided to $214 million to $216 million, that puts the fourth at about $270 million. For perspective, the 2026 target itself represents about 74% growth over 2025.
In other words, a doubling next year arguably wouldn't require a new trajectory -- just the current one holding for another year.
Most of the growth is already under contractA significant amount of that $25.4 billion backlog, the company's latest quarterly filing says, traces to a single agreement with OpenAI, the ChatGPT maker. But for 2027, the conversion schedule is what matters.
Cerebras expects about 22% of the balance (about $5.6 billion) to be recognized as revenue during the 24 months that end June 30, 2028. The company cautions that the timing can shift at the customer's request. (The backlog converts on Cerebras' reported revenue basis, which ran about 7% below core revenue in the first half.)
Calendar 2027 covers half of that window. And the guided second half of 2026 comes to only about $480 million of core revenue. For next year to fall short of a doubling, then, most of that $5.6 billion would have to crowd into the window's final six months in early 2028.
A shortfall like that is possible. Management, though, is planning for the opposite. A tripling next year would put the steep part of the ramp squarely in 2027.
What could stall the build-out?The main risk is construction, not demand. Cerebras counts more than 600 megawatts of data center capacity as live or under contract for delivery by the end of 2027.
Manufacturing capacity is set to grow more than tenfold in 2026, and Cerebras says it has secured the wafer supply it needs from Taiwan Semiconductor Manufacturing. Every one of those is a schedule that has to hold.
Notably, three customers accounted for 76% of second-quarter reported revenue, and the backlog itself leans on the OpenAI agreement. If a single buyer's schedule slips, most of a year's growth could slip with it.
The build-out is expensive, too, for a company that remains unprofitable on its core measure. Cerebras is paying for data centers and factory lines ahead of the revenue they'll carry, helped by the $6.4 billion it raised in its May initial public offering (IPO).
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A revenue forecast isn't a buy call, of course. With the stock around $203 as of this writing, Cerebras carries a market value near $48 billion, which is more than 25 times the 2027 core revenue I'm predicting -- for a company that hasn't yet turned growth into core profits.
So I'm not a buyer at this level.
Ultimately, though, the revenue call is different. Getting above $1.8 billion next year would take only about two-thirds of what management itself is planning for, on demand the company has already signed. I expect Cerebras to clear that bar.
Klíčovým termínem pro Cerebras je 9. listopadu: tehdy má skončit lockup a k prodeji se uvolní zbytek akcií. Do té doby už bylo uvolněno zhruba 113 milionů z odhadovaných 171 milionů akcií.
Last Wednesday, about 14.6 million shares of Cerebras Systems (CBRS +2.18%) became eligible for sale for the first time. Two weeks earlier, another 14.6 million. Two weeks before that, 14.6 million more. The artificial intelligence (AI) computing specialist's initial public offering (IPO) lockup isn't waiting for an expiration date -- it has been dissolving on a schedule since the stock started trading.
Cerebras went public on May 14, selling 34.5 million shares at $185 apiece and raising $6.4 billion. Nearly every other share stayed locked.
But the lockup was never a single 180-day freeze. It lets shares out on 11 separate dates.
The first 10 free about 171 million shares, by the company's own estimate. And Cerebras has about 238 million shares outstanding. The 11th date frees whatever is left.
Most of those dates are already behind the stock. Here's how the schedule works, and why Nov. 9 is the one worth circling.
Image source: Getty Images.
Most of the supply is already looseThe releases started immediately. About 2.5 million shares held by rank-and-file employees could be sold on day one, and another 2.5 million on day two. That second release required the stock's first-day close to top 133% of the IPO price, or about $246. It closed at $311.07.
The bigger waves were tied to earnings. About 27.7 million shares held by directors, officers, and early investors became sellable two trading days after Cerebras reported first-quarter results on June 23. Another 36.4 million (the schedule's biggest single release so far) came two trading days after the second-quarter report on Aug. 12. From there, the schedule turned biweekly -- about 14.6 million shares each on Aug. 19, Sept. 2, and Sept. 16.
Add it all up, and nearly 113 million of the estimated 171 million early release shares are already free. In other words, most of the lockup was gone well before its expiration date.
Nov. 9 is the date to circleThree more waves sit on the published schedule, about 19.4 million shares apiece. One lands Sept. 30, and October brings the other two, on the 14th and the 28th. Together, they free about 58 million more shares.
Then comes the finale. Everything still locked becomes eligible for sale on whichever of two dates comes first: the second trading day after Cerebras reports third-quarter results, or Nov. 9, which lands 180 days after the date of the IPO prospectus.
The company hasn't put a number on that last wave. It is everything not yet freed.
The tech company hasn't scheduled its third-quarter report yet. But its first report as a public company came 84 days after the quarter closed, and its second came 43 days after.
To beat Nov. 9, the company would have to report by about Nov. 4, a faster turnaround than it has managed yet, and I wouldn't count on that. Nov. 9, then, is likely the day the lockup ends.
Of course, the schedule isn't ironclad. The underwriters can release any of these shares early, and even after full expiry, company insiders face securities-law limits on how much they can sell at once.
Does the new supply change the story?The market's reaction to the supply has been uneven. The stock fell about 26% over the two sessions following the June 23 report, the second of which was also the day the 27.7 million-share wave opened. The AI specialist's roughest stretch, a slide of more than 30% from mid-August into early September, began days after the schedule's biggest wave and ran through another release date.
But last Wednesday's release passed with shares rising that day. Scheduled supply, after all, is arguably the easiest kind of news for the market to see coming.
Notably, a stock that peaked just above $386 on day one now trades around $199 as of this writing, about 7% above its IPO price.
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Meanwhile, the business those shares represent keeps growing quickly. Second-quarter revenue came in at about $180 million, up 74% from a year earlier.
Demand also runs years ahead. Remaining performance obligations, the backlog of contracted work Cerebras hasn't delivered yet, stood at $25.4 billion as of June 30 -- and a significant share of that comes from one customer, OpenAI.
Demand isn't in question here. What changes every couple of weeks is how many shares can chase it.
Ultimately, the lockup calendar tells investors who can sell and when. It says nothing about whether they will, and nothing about the company's valuation.
If I owned the stock, I wouldn't sell just because more supply is on the schedule. And I wouldn't treat a quiet release date as a buying signal, either. But I'd know when the calendar runs out. After Nov. 9, there's nothing left to unlock.
Cerebras Systems (CBRS +2.32%) has been cut in half. Shares of the artificial intelligence (AI) computing specialist peaked at $386.34 on their first day of trading in May, a day after the company priced its initial public offering (IPO) at $185 and raised $6.4 billion. As of this writing, the stock trades around $184 -- about 52% below the high, and just under that IPO price.
A decline like that usually follows a stumble: a guidance cut, a lost customer, a bad quarter. Cerebras hasn't had one. Shares dropped double digits anyway the day after its mid-August update, arguably the company's strongest yet and one in which management raised its outlook for the year.
Yet even at half price, the stock costs about 145 times the earnings analysts expect the company to generate next year.
What did the fall reprice -- the business, or just the price tag?
Image source: Getty Images.
Growth hasn't been the problemIt wasn't the business. In its mid-August update, Cerebras reported core revenue (a measure that strips out pass-through data center revenue and adds back a noncash deduction tied to customer warrants) of $209.9 million, up 103% year over year, with core gross margin improving to 41% and core operating margin to negative 16%. In other words, the company still loses money, but far less of it on every dollar of sales. And management raised its full-year outlook to a range of $880 million to $890 million in core revenue, up from a prior range of $855 million to $865 million.
The cloud business is driving the growth, and the growth is accelerating. Cloud and other services revenue, as reported under generally accepted accounting principles (GAAP), was $33 million in the year-ago quarter, about $83 million in this year's first quarter, and $126 million in the second, up 281% year over year. Renting out computing is increasingly the story -- the cloud side supplied 70% of the company's reported revenue in the latest quarter, up from about a third a year ago.
Whatever cut the stock in half, it wasn't the fundamentals.
The valuation did the fallingWhat changed is what buyers will pay for that growth. Analysts expect Cerebras to earn about $1.25 per share next year.
At around $184, the stock costs about 145 times those expected earnings. And measured against the same estimate, May's $386.34 peak worked out to about 310 times next year's expected earnings.
That, I'd argue, is the honest reading of the sell-off. Investors didn't mark down Cerebras' business. They marked down what they were willing to pay for it. Even now, buyers are paying for profits that are still mostly forecast.
What has to go right?For today's price to make sense, earnings have to grow into it. Suppose the stock eventually traded at 30 times earnings -- still a premium price for most businesses. At about $184 per share, Cerebras would need to earn about $6 per share annually, nearly five times what analysts expect for next year.
The bull case is that much of the growth needed to get there is already under contract. Cerebras ended June with $25.4 billion in remaining performance obligations (work customers have committed to pay for but the company hasn't yet delivered), much of it tied to a single agreement under which OpenAI committed to purchase 750 megawatts of AI computing capacity. Cerebras expects about $5.6 billion of that balance, or 22% of it, to become revenue over the 24 months ending June 30, 2028.
"We have made rapid progress in key areas required to deliver exceptional growth ... and plan to more than triple revenue in 2027," chief financial officer Bob Komin said in the company's second-quarter earnings release.
Sure, revenue could triple next year. The contracts support it. But revenue isn't earnings.
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After all, Cerebras ran a core operating loss last quarter even with sales doubling, and most of the backlog converts after mid-2028. The profits the price depends on are still years of execution away, and the timing can shift.
So, what did the halving reprice? Mostly the price tag. The business is in better shape than it was in the spring, and the backlog gives Cerebras' growth plans unusual visibility.
But at about 145 times next year's expected earnings, the stock still assumes years of rapid growth and a smooth swing to profitability, and it leaves little room for the timing to slip.
Ultimately, cut in half isn't the same as cheap. I'd stay on the sidelines at this price. If Cerebras starts turning that backlog into profits, and not just revenue, I'd take another look.
Cerebras za poslední měsíc klesl o 17,2 %, ale ve 2. čtvrtletí překonal odhady: tržby vzrostly o 103 % na 209,87 milionu USD. Firma zároveň zvýšila celoroční výhled základních tržeb na 880–890 milionů USD.
A month has gone by since the last earnings report for Cerebras (CBRS - Free Report) . Shares have lost about 17.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cerebras due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Cerebras Q2 Earnings Beat Estimates, Revenues Increase Y/YCerebras reported a second-quarter 2026 loss of 4 cents per share, narrower than the Zacks Consensus Estimate, delivering an 80.95% earnings surprise.
Core revenues of $209.87 million rose 103% year over year and topped the consensus estimate by 8.09%. The upside was led by rapid adoption of fast inference services. Core cloud and other services revenues surged 287% year over year to $127.7 million, while remaining performance obligations (RPO) reached $25.4 billion.
CBRS Cloud Business Drives Revenue GrowthCore cloud and other services revenues nearly quadrupled from $33 million a year earlier, reflecting the ramp-up of the OpenAI deployment and higher usage from other cloud customers. Core hardware revenues rose 17% year over year to $82.1 million.
Management said the revenue mix can vary significantly from quarter to quarter depending on the timing of large cloud-capacity additions and hardware shipments. Demand remained strong, with several late-stage hardware opportunities representing hundreds of millions of dollars and additional cloud deals targeted for 2027.
CBRS Sees Broader Customer AdoptionCerebras signed new cloud-capacity agreements with AI coding companies Cognition and Lovable. It cited Block, Figma, AlphaSense and GSK among customers using fast inference for agentic workflows.
The company highlighted CrowdStrike as an example of a new security use case, where low-latency large language model inference can inspect enterprise traffic inline. Management also said six deals worth more than $30 million each were signed during the quarter.
Cerebras Deepens AI Infrastructure PartnershipsThe company enabled support for OpenAI's GPT-5.6 Sol at 750 tokens per second. Cerebras also expanded its disaggregated inference strategy with AMD, pairing GPU-based prefill processing with Cerebras systems for decoding.
Management said the AMD configuration can maintain Cerebras’ speed while increasing throughput by up to fivefold and is expected to enter production in the fourth quarter of 2026. A similar disaggregated inference offering with AWS is expected to become generally available through Amazon Bedrock in the first quarter of 2027.
CBRS’ Q2 Operating DetailsIn the second quarter of 2026, core gross margin was 40.6%, up about 940 basis points year over year. Core cloud and other services gross margin was 41.8%, while core hardware gross margin came in at 38.8%. Sequential margin pressure reflected the temporary use of higher-cost systems rented back from cloud customers.
Operating expenses totaled $502.8 million. Research and development expenses were $320.2 million, sales and marketing expenses were $87 million, and general and administrative expenses were $95.7 million. The sharp increase in reported expenses included substantial stock-based compensation costs.
Adjusted EBITDA was a loss of $53.1 million compared with a loss of $38.3 million in the prior-year quarter.
Core operating loss was $33.6 million compared with $43.9 million a year earlier and core operating margin improved to negative 16% from negative 42%.
CBRS Balance Sheet Supports Capacity InvestmentsThe balance sheet strengthened meaningfully. As of June 30, 2026, cash, cash equivalents, restricted cash and short-term investments totaled $8.6 billion. The company has access to an $850 million revolving credit facility, which remained unused at quarter-end.
For the first six months of 2026, net cash used in operating activities was $47.5 million. Purchases of property and equipment totaled $548.9 million as the company continued investing in the data center and infrastructure capacity needed to support future growth.
Cerebras Raises 2026 OutlookFor the third quarter of 2026, Cerebras expects core revenues to be in the range of $214-$216 million. Core gross margin is projected between 38% and 40%, while core operating margin is expected between negative 25% and negative 23%.
For 2026, management raised core revenue guidance to $880-$890 million. Core gross margin is expected to be 41%-43%, while core operating margin is projected between negative 19% and negative 17%. Management expects core revenues to more than triple in 2027.
CBRS Builds Capacity for 2027 ExpansionCerebras has secured more than 600 megawatts of data center capacity that is either live or under contract for delivery by the end of 2027. Its pipeline of additional data center opportunities is measured in gigawatts, as available capacity remains a key constraint on revenue growth.
Manufacturing capacity is expected to increase more than tenfold in 2026, supported by new factory lines at Flex, Sanmina and Rocket EMS. The company secured TSMC wafer supply and highlighted that its architecture does not require High Bandwidth Memory (HBM), CoWoS packaging or 3-nanometer fabrication technology.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 57.9% due to these changes.
VGM ScoresAt this time, Cerebras has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cerebras has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCerebras belongs to the Zacks Technology Services industry. Another stock from the same industry, Duolingo, Inc. (DUOL - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Duolingo reported revenues of $298.45 million in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $0.66 for the same period compares with $0.91 a year ago.
Duolingo is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of -42.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.
Duolingo has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Cerebras má ke konci června backlog 25,4 miliardy USD, z velké části díky dohodě s OpenAI. Firma očekává, že do června 2028 z něj zaúčtuje jen asi 22 %.
By most measures, Cerebras Systems (CBRS +10.30%) delivered an outstanding second quarter.
The artificial intelligence (AI) computing specialist grew its non-GAAP (adjusted) revenue 103% year over year to $209.9 million. Its inference cloud business nearly quadrupled, and management raised its full-year outlook to a range of $880 million to $890 million in adjusted revenue.
But the most important number in the mid-August update wasn't on the income statement at all. Cerebras ended June with $25.4 billion in remaining performance obligations, the backlog of contracted work it hasn't yet delivered or recognized as revenue. That's nearly 29 times the revenue management expects for all of 2026, a figure lifted by data center costs passed through to OpenAI.
A figure that large deserves scrutiny. The company's own filings say where to look: at a single agreement with OpenAI.
Image source: Getty Images.
The backlog arrived almost all at onceIn December 2025, Cerebras signed a master relationship agreement with the ChatGPT maker under which OpenAI committed to purchase 750 megawatts of computing capacity for AI inference -- a deal Cerebras has valued at more than $20 billion. OpenAI also holds an option to buy an additional 1.25 gigawatts of capacity by the end of 2030.
Remaining performance obligations were $24.6 billion at the close of 2025, then edged up to $25.0 billion in March and $25.4 billion in June. The balance grew only about 3% over the first half of 2026. Nearly all of it was on the books before 2026 began. And Cerebras says in its latest quarterly filing that a significant amount of the balance is attributable to its obligations under the OpenAI agreement.
Cerebras recognized $56.8 million of revenue under the arrangement in the second quarter, or about 32% of the company's $180.1 million in revenue under generally accepted accounting principles (GAAP), which grew 74% year over year.
When does the backlog become revenue?The backlog converts slowly, by design. Cerebras expects to recognize only about 22% of the $25.4 billion (about $5.6 billion) over the 24 months ending June 30, 2028.
Another 43% should arrive between months 25 and 48, with the rest coming later. Of course, the timing can shift at the customer's request.
It's worth noting, though, that the near-term share has moved up. At the close of 2025, Cerebras expected about 15% of the balance to convert in the 24 months through 2027. The latest figure is 22%, though it covers a window ending six months later.
The conversion takes years partly because Cerebras is still building the thing it has sold. Capacity for OpenAI deploys in stages from 2026 through 2028. Cerebras says more than 600 megawatts of data center capacity is live or under contract for delivery by the end of 2027, with manufacturing capacity set to grow more than tenfold in 2026. And just this week, Cerebras announced a new 165-megawatt data center in Finland.
OpenAI is even helping to finance the build-out, advancing Cerebras a $1 billion working capital loan in January.
Concentration isn't new hereIn 2025, Mohamed bin Zayed University of Artificial Intelligence accounted for 62% of the company's revenue, and Group 42 accounted for another 24%. Those figures are shares of last year's revenue, not of the backlog.
But the pattern held in the second quarter, when three customers each accounted for at least 10% of revenue, or 76% of it between them. The company doesn't say exactly how much of the $25.4 billion sits with OpenAI. Either way, a short list of buyers is doing most of the buying.
That matters because of the stock's valuation. With shares around $215 as of this writing (down about 44% from their 52-week high of $386.34), the whole company is valued near $51 billion -- nearly 58 times the adjusted revenue management expects this year, for a company still posting operating losses. Even if revenue more than triples in 2027, as management plans, the stock would trade at about 19 times those expected sales.
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What, then, is the backlog worth to a shareholder? A lot, I think -- just not everything the headline number implies.
The $25.4 billion includes a customer's multiyear commitment, not revenue in hand. And most of it is scheduled to convert after mid-2028, by a company that must build enormous capacity on time, much of it for one buyer whose needs could change.
The business itself is executing well. Adjusted gross margin improved about nine percentage points from a year ago, and Cerebras holds about $8.6 billion in cash and investments after May's initial public offering.
Ultimately, the backlog is evidence of extraordinary demand and arguably the best reason to keep watching Cerebras closely. But I'd want to see the OpenAI revenue step up for a few more quarters before paying today's price.
Cerebras a Compute Nordic Finland oznámily nové AI datacentrum ve městě Mikkeli s kapacitou až 165 MW. Projekt je formalizován sérií servisních objednávek se sedmiletými smluvními podmínkami a odhadovanou regionální investicí 1,0–1,7 miliardy €.
Facility backed by seven-year contracted capacity agreement and estimated €1.0–1.7 billion in regional investment for local development and employment | Source: Cerebras Systems Inc.
MIKKELI, Finland, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems (NASDAQ: CBRS) today announced a new AI data centre in Mikkeli, Finland, developed in partnership with Compute Nordic Finland. The facility will scale in phases to 165 MW of contracted IT capacity to deliver high-density AI compute with construction on the initial 50 MW phase already under way.
The agreement, formalized through a series of service orders each with seven-year contract terms, gives Cerebras long-term, purpose-built infrastructure to support growing global demand for its AI compute platform, while providing the Mikkeli region a long-term industrial anchor with significant estimated revenue and sustained job opportunities.
“This partnership with Cerebras is not a speculative bet on future demand — it's a contractually committed, phased build-out that reflects exactly how much AI compute the market needs today and where that need is heading,” said Pyry Virrantaus, CEO of Compute Nordic Finland. “We are proud to build that capacity in Mikkeli, alongside a partner network of local and national organizations who are ready to deliver the project and build the workforce it requires.”
More AI Per Megawatt
Cerebras and Compute Nordic designed the Mikkeli facility for efficiency from day one to optimize power and water usage. The facility is designed to use closed-loop cooling systems that recirculate water rather than draw continuously from municipal supply, and the campus is designed to support waste-heat recovery, enabling thermal energy generated by AI compute into a resource for the surrounding community.
“Our architecture is built to get more useful AI output out of every megawatt we deploy,” said Andrew Feldman, CEO and co-founder, Cerebras. “Mikkeli lets us pair that efficiency with a data centre designed for closed-loop cooling and heat reuse from the ground up.”
A Long-Term Industrial Anchor for South Savo
Cerebras' long-term commitment in Mikkeli reflects the company's broader approach to data centre development: building long-term technical capability and high-quality, permanent jobs around advanced AI infrastructure, rather than treating a site as a temporary construction project. As demand for Cerebras' wafer-scale AI compute continues to grow globally, Mikkeli adds a purpose-built, efficiency-first facility to the company's infrastructure footprint, with capacity scaling from 50 MW to 80 MW to a full 165 MW as data centre capacity is delivered.
Independent analysis from Ramboll's Finnish Data Center Market Study and Impact Assessment Report (12 September 2025) estimates that, at full 165 MW scale, the project represents an indicative investment of €1.0–1.7 billion for the region, supporting an estimated 80–250 direct permanent jobs and €0.8–2.5 million per year in property tax revenue.
Unlike the construction-heavy, short-lived employment sometimes associated with large data centre projects, Cerebras and Compute Nordic are emphasizing the permanent, technical roles the Mikkeli campus will create and sustain over the life of the facility — including operations, power and cooling engineering, networking, security, and facilities management — alongside the near-term construction and local supply chain activity already under way.
“The clearest measure of a project like this isn't the number of construction jobs it creates upfront; it's what remains ten or twenty years later,” Virrantaus said. “We looked at permanent employment, workforce pathways, local suppliers, and durable economic activity when building this out in Mikkeli.”
A Broad Partner Network
The Mikkeli project is developed in close cooperation with the City of Mikkeli and key regional stakeholders across South Savo, supported by a broad network of Finnish construction, engineering, energy, recruitment, and professional services partners.
Compute Nordic Finland is leading project development, operator responsibility, the customer interface, and overall programme governance.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
About Compute Nordic Finland
Compute Nordic Finland develops and operates high-density AI data centre infrastructure in Finland, partnering with local communities, energy providers, and technology talent to deliver long-term industrial investment. Compute Nordic leads project development, operator responsibility, and programme governance for the Mikkeli AI Data Centre.
Cerebras Disclosure Information
Cerebras uses its blog (cerebras.ai/blog), investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements about the partnership with Compute Nordic; expectations regarding contracted capacity and ability to deliver AI compute; impact on and direction of the AI infrastructure industry; long-term economic impact in Finland, including impact on employment, investment scale, and tax revenue; expectations regarding operational efficiency and environmental responsibility, including heat-reuse and closed-loop cooling; and any assumptions relating to the foregoing. The words "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "objective," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Cerebras’ control. These risks and uncertainties include, but are not limited to: Cerebras’ ability to sustain and manage its growth, access borrowings and other sources of capital on acceptable terms, and deploy available capital to support growth; its history of net losses and ability to achieve and maintain profitability; its limited operating history at its current scale and ability to accurately forecast revenue and appropriately budget and manage expenses; its dependence on a limited number of significant customers, including OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence, and AWS, and the potential impact of any reduction in demand from, material adverse development in its relationships with, or failure to meet its obligations to, such customers, including under its Master Relationship Agreement with OpenAI; the timing, execution and expected benefits of its strategic customer, partner and financing arrangements; its historical reliance on sales of hardware systems and the early-stage, rapidly evolving market for its cloud-based offerings and AI infrastructure; its ability to secure sufficient data center capacity and capital to support its cloud-based offerings; its ability to launch new offerings and add new product capabilities; and its ability to compete effectively in the rapidly evolving and competitive market for AI computing solutions.
Cerebras’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Accordingly, undue reliance should not be placed on such statements. These forward-looking statements are made as of the date they were first issued and are based on information available to Cerebras together with Cerebras’ expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the SEC, including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.
NVIDIA oznámila čtvrtletní tržby ve výši 81,61 miliardy USD, tažené datovými centry s 75,246 miliardy USD. Cerebras zvýšil celoroční výhled hlavních tržeb na 880 až 890 milionů USD.
NVIDIA prints $81 billion quarters while Cerebras barely cleared its IPO, yet one metric puts the underdog in a position the AI giant cannot easily dismiss. The strategic clash between wafer-scale inference and full-stack AI factories raises a real question…
Cerebras Systems (NASDAQ: CBRS) and NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) delivered post-earnings reports showing two distinct AI compute visions. NVIDIA reported a $81.61 billion quarter powered by full-stack AI factories. Cerebras, fresh off its IPO, bets on wafer-scale inference speed. The results make a direct comparison unusually relevant.
Wafer Scale Meets AI Factory Scale NVIDIA’s Q1 FY27 earnings were dominated by Data Center revenue of $75.246 billion, up 92% year over year, with networking growing 199%. Jensen Huang stated “Demand has gone parabolic.” Blackwell Ultra swept every MLPerf inference benchmark, and Vera Rubin production begins in the second half of fiscal 2027.
Cerebras took a different route. Core revenue reached $209.87 million, up 103%, though GAAP revenue of $180.11 million came in 6.95% shy of consensus. CEO Andrew Feldman said “our cloud business nearly quadrupled year-over-year”, driven by fast inference demand from OpenAI, AWS, AMD, and CrowdStrike. Backlog sits at $25.4 billion in remaining performance obligations.
Platform Empire Versus Speed Specialist The strategic split is clear. NVIDIA sells a vertically integrated stack: CUDA, NVLink, Spectrum-X, DGX, and Vera Rubin, aimed at every hyperscaler and sovereign buildout. Huang emphasized that “AI native clouds don’t build chips, don’t design their own chips”, positioning NVIDIA as the ready-made AI factory. Cerebras leverages single-chip scale that sidesteps HBM memory, CoWoS packaging, and 3nm constraints, wrapped in a cloud inference service.
Lens NVIDIA Cerebras Core Bet Full-stack AI factories Fastest single-user inference Gross Margin 75.0% non-GAAP 40.6% core Anchor Customer Every hyperscaler OpenAI 750MW deal Key Vulnerability China revenue at zero Customer concentration NVIDIA counters Cerebras with TensorRT-LLM, speculative decoding, multi-user concurrency scaling, and ubiquitous cloud availability. Cerebras wins on raw tokens per second for a single user. Different buyers, overlapping budgets.
Vera Rubin Ramp Versus Cerebras Scaling The next tests are concrete. NVIDIA guided Q2 FY27 revenue to $91.0 billion, plus or minus 2%, excluding China Data Center compute. Vera Rubin promises up to 35x higher inference throughput versus Blackwell. Watch whether hyperscalers accept that leap without hesitation.
Cerebras raised full-year 2026 core revenue guidance to $880 to $890 million and plans to triple revenue in 2027. Monitor whether manufacturing capacity, scaling more than 10x in 2026, actually delivers.
Why NVIDIA Remains the Anchor, With Room for Cerebras NVIDIA remains the sturdier position. A 32x trailing P/E on 17.28% one-year gains, paired with $48.554 billion in quarterly free cash flow, reflects a business printing money while buildout is early. Cerebras appeals as a smaller, higher-variance position for investors believing inference speed commands a premium. GAAP losses tied to $377.0 million in stock-based compensation and customer concentration warrant caution. If Vera Rubin ships on time and Cerebras hits 2027 guidance, both can work. Until then, NVIDIA is the anchor and Cerebras is the swing.
Contact [email protected] for any questions or corrections.
Ark Invest koupil 93 290 akcií Cerebras za zhruba 17,2 milionu USD a zároveň prodal 7 600 akcií AMD za téměř 3,5 milionu USD. Wood tak dál sází na AI čipový titul místo AMD.
Ark bought $17.2 million of Cerebras shares. Summary
Wood sold about $3.5 million of AMD stock.
Cathie Wood is backing Cerebras Systems (CBRS, Financials) with a greater vote of confidence. Ark Invest bought 93,290 shares of Cerebras, a purchase valued around $17.2 million. The move adds to recent buys by Wood in the AI chip business.
Ark also sold 7,600 shares of Advanced Micro Devices valued at almost $3.5 million. That difference makes the trade interesting.
Cerebras is currently a far smaller player than AMD or Nvidia, but it's seeking to carve out a niche in AI inference with devices built to run models quicker and more efficiently.
The company recently announced its CS-4 system, which it said will provide more than 4,400 tokens every second per user. Analysts have also indicated Meta could come in as a further customer later this year.
Wall Street is generally bullish. Cerebras has a Strong Buy consensus rating and its average price target is $296, suggesting ~61% upside from recent levels.
The risk is obvious: Cerebras shares continue to be substantially lower since the company's IPO in May. But her new action indicates she sees that weakness as an opportunity, not a warning.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Cerebras Systems ve 2. čtvrtletí téměř zdvojnásobila core non-GAAP výnosy na zhruba 209,9 milionu USD. Firma zároveň zvýšila celoroční odhad core výnosů na 880 až 890 milionů USD.
The semiconductor sector is undergoing a fundamental shift. While the opening chapters of the artificial intelligence boom centered on heavy training clusters, enterprise spending is pivoting toward real-time inference. For generative applications and autonomous agents, how fast a system can process tokens often dictates product viability.
Cerebras Systems Today
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Cerebras Systems
$205.61 -14.40 (-6.55%)
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$160.81▼
$386.34$299.90
Cerebras Systems Inc. NASDAQ: CBRS sits at the center of this shift. By taking a distinct path away from legacy processor designs, Cerebras Systems has engineered a wafer-scale architecture that overcomes the physical memory constraints that cap traditional hardware.
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With expanding hyperscale partnerships, an insulated supply chain, and a multibillion-dollar backlog, Cerebras Systems presents a compelling case for investors watching the next wave of infrastructure buildouts.
Cracking the Latency Code With Single-Wafer SiliconEvaluating Cerebras Systems requires understanding how generative workloads actually run. Machine learning inference divides into two phases: prefill and decode. Prefilling ingests the initial prompt in parallel, a process in which traditional graphics chips excel. Decode generates output sequentially, creating tokens one word or character at a time.
During decode, traditional processors must repeatedly move data between compute cores and external memory banks. This physical bottleneck, known as the memory wall, severely restricts generation speed. When an autonomous software engineer or an automated cybersecurity system works through a multi-step problem, slow output can create lag that disrupts the user's workflow.
Cerebras Systems bypasses this challenge by building an entire processor across a single silicon wafer. By embedding 44 gigabytes of static random-access memory directly on the chip alongside hundreds of thousands of cores, data shuttling over external circuit boards is eliminated. The architecture delivers tokens at up to 14 times the speed of conventional setups, turning interactive AI into an instantaneous tool.
Divide and Conquer: Teaming Up to Speed UpRather than forcing enterprise customers into expensive rip-and-replace infrastructure cycles, Cerebras Systems embraces disaggregated inference. Under this model, standard accelerators handle input prefill, while wafer-scale hardware manages sequential decode. This division of labor delivers up to a 5x boost in overall data center throughput while preserving ultra-low latency.
Hyperscale Handshakes: Powering OpenAI at Blistering VelocityReal-world proof of this disaggregated approach is broadening through partnerships with top-tier companies:
AMD Alliance: Cerebras Systems has teamed with Advanced Micro Devices Inc. NASDAQ: AMD to link Helios rack platforms with Cerebras Systems hardware. Entering production around the fourth quarter of 2026, the joint setup allows existing GPU operators to multiply system throughput.
Amazon Bedrock Integration: A collaboration with Amazon.com Inc. NASDAQ: AMZN brings Cerebras Systems to Amazon Bedrock in the first quarter of 2027, enabling broad distribution across enterprise cloud environments.
OpenAI Production Tier: Cerebras Systems powers the Ultrafast mode for OpenAI's GPT-5.6 Sol model, clocking up to 750 tokens per second to deliver high-value performance for complex reasoning.
Enterprise adoption is spreading into latency-sensitive software environments. Cybersecurity platform CrowdStrike Holdings Inc. NASDAQ: CRWD uses the technology to run real-time threat analysis on active corporate networks, while digital payments leader Block Inc. NYSE: XYZ uses it to accelerate automated customer workflows.
Dodging the High Bandwidth Memory CrunchSupply chain exposure remains a structural risk for many semiconductor manufacturers. Industry demand for high-bandwidth memory and specialized 3D packaging continues to create packaging waitlists and margin volatility.
Cerebras Systems avoids these chokepoints through its unique manufacturing footprint. Relying on integrated on-chip memory rather than stacked memory modules reduces exposure to tight packaging channels. Silicon fabrication runs on proven, cost-effective 5-nanometer wafers from Taiwan Semiconductor Manufacturing Company NYSE: TSM, ensuring stable wafer deliveries at attractive component pricing.
Assembly capacity is expanding rapidly. Contract manufacturing lines with Flex Ltd. NASDAQ: FLEX, Sanmina Corp. NASDAQ: SANM, and Rocket EMS are scaling hardware output by more than 10x through 2026. On the facility side, Cerebras Systems has secured over 600 megawatts of data center capacity under contract through 2027. Immediate technology upgrades are underway, with the debut of the fourth-generation CS-4 system at the Supernova 2026 conference, projected to deliver a 20x increase in throughput over the next 18 months.
A Backlog of Billions Backs Up the HypeCerebras' recent results demonstrate that customer demand is translating into meaningful top-line expansion. Second-quarter core non-GAAP revenue roughly doubled year-over-year to approximately $209.9 million, driven by core cloud revenue surging 287% to about $127.7 million.
Although headline GAAP numbers reflected an accounting net loss of approximately $450.5 million, largely due to post-IPO stock-based compensation and non-cash customer warrant amortization, operational leverage improved markedly. Core gross margins expanded by roughly 940 basis points to about 40.6%, while core operating margin gained approximately 2,600 basis points compared to the prior year.
Management raised full-year core revenue expectations to a range of $880 million to $890 million, while projecting core revenue to more than triple in 2027. Providing long-term commercial visibility, Cerebras' remaining performance obligations stand near $25.4 billion. A balance sheet holding around $8.6 billion in cash, equivalents, and short-term investments, alongside an undrawn $850 million credit facility, provides significant runway to self-fund data center buildouts.
Shifting Into Overdrive: Why Patient Capital Is Eyeing CerebrasEvery major computing cycle transitions from early infrastructure buildout to real-time workload optimization. As businesses prioritize low latency, power efficiency, and per-token unit economics, computing architectures tailored specifically for high-speed inference stand to capture meaningful market share.
Investors should account for potential near-term gross margin fluctuations at Cerebras, as temporary system rentals to meet immediate cloud demand could keep third-quarter margins in the 38% to 40% range before owned hardware deployments take over.
However, with Wall Street price targets averaging around $299.90, representing roughly 35% upside from current prices near $221.71, investors with a growth-focused horizon may want to keep Cerebras Systems on their radar as an innovative pure-play in the inference buildout.
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Cerebras ve 2. čtvrtletí zvýšil tržby o 74 % na 180,1 milionu USD a upravené hrubé marže vzrostly na 40,6 %. Firma zároveň zvedla celoroční výhled upravených tržeb na 880 až 890 milionů USD.
After Cerebras Systems (NASDAQ: CBRS) reported its second-quarter results after the close on Aug. 12, its shares sank 16% over the following two trading sessions, although the stock bounced back after the investment advisor Wedbush Securities praised the company for powering OpenAI's ultrafast mode for its GPT-5.6 Sol model.
The chipmaker's stock is now down by around 43% from the high it touched shortly after its initial public offering earlier this year, and the stock looks like a buy as inference demand soars.
Cerebras makes systems built around its wafer-scale chips -- processors the size of dinner plates that are made from a whole silicon wafer. They can contain a large amount of static random-access memory (SRAM), which is an advantage, but they also require special cooling and power management, which makes them a premium option.
However, having many standard chips' worth of hardware on a single extra-large chip also makes them super-fast and ideal for the decode phase of inference. The company is teaming up with Advanced Micro Devices, whose Helios solution will cut down costs and offer strong value. It also has big deals in place with OpenAI and a partnership with Amazon through Amazon Web Services that is expected to go live early next year.
Soaring revenue and improving gross margins Cerebras saw 74% revenue growth in the second quarter, with sales climbing to $180.1 million. Its core sales figure, which strips out revenue distortions caused by customer warrants and pass-through accounting, more than doubled to $209.9 million.
More and more customers are renting out its systems, which led to its cloud revenue surging 281% year over year to $126 million, and its core cloud revenue soaring 287% to $127.7 million. Hardware revenue sank 23% year over year to $54.1 million, while core hardware revenue rose 17% to $82.1 million.
Gross margins have been a point of contention for the company. Its core gross margins came in at 40.6%, up 940 basis points versus a year ago. Core gross margin for its cloud operation was 41.8%, a 1,600 basis point year-over-year improvement, while core hardware gross margin was 38.8%, 510 basis points higher than a year earlier. However, core gross margin fell sequentially from 46.5% in the first quarter due to higher costs from renting back systems to meet urgent demand.
Management projected third-quarter revenue of between $214 million and $216 million, with core gross margins between 38% and 40%. Cerebras also upped its full-year guidance, taking its core revenue forecast to a range of $880 million to $890 million, up from a prior outlook of $855 million to $865 million. It now sees its core gross margins coming in between 41% and 43%, up from an earlier projection between 38% and 41%.
For 2027, management is looking for core revenue to surge more than threefold and is expecting strong growth in 2028 and beyond. It is projecting core gross margins to improve in 2027 and move toward its 60%-plus long-term target.
Image source: The Motley Fool.
The AI inference market is heating up, and the size of that segment is expected to eventually become much larger than AI training for Cerebras. Bloomberg Intelligence is projecting it will grow at a 32% compound annual rate through 2032 to reach $1.3 trillion, nearly double the size of the AI training market. While Nvidia dominated the AI processor market when it came to hardware for training, the inference market looks like it will have multiple winners, including Cerebras.
Although the company's systems are a more expensive option, their superior performance should help it gain its fair share of this rapidly growing segment. The OpenAI announcement is the perfect example of the opportunity in front of Cerebras at the high end of the market.
Meanwhile, I really like its partnership with AMD. A combined solution, where AMD chips can more cheaply handle the pre-fill inference phase -- the initial stage of large language model inference -- should be very compelling and help give customers the best of both worlds. Cerebras' deals with OpenAI and Amazon also provide a strong core customer base, and over time, its customer base should expand.
Given the growth of the inference market and the huge opportunity ahead of it, Cerebras looks like a solid buy, albeit a speculative one, on its recent price dip.
SUNNYVALE, Calif., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems (NASDAQ: CBRS) today introduced the Cerebras CS-4, the fastest AI accelerator in the industry. The CS-4 is a rack-scale solution built from three new Wafer Scale Engines and revolutionary rack and system designs. The CS-4 is the first member of the next-generation Cerebras Nexus rack-scale platform architecture. It is up to twice as fast as the CS-3, bringing the CS-4s advantage in tokens-per-second-per-user over GPUs to up to 30x more.
The CS-4 solution also delivers up to 10x more throughput per watt than the CS-3, vastly improving data center economics. Because fast tokens are more valuable than slow tokens, the CS-4 delivers both higher-value tokens and more total tokens within a given power budget—enabling datacenters to be vastly more profitable.
“In AI, speed is productivity,” said Andrew Feldman, CEO and co-founder of Cerebras. “Historically, fast inference meant using smaller and less capable models. Cerebras CS-4 delivers industry-leading speeds on the largest frontier models, fundamentally changing the paradigm. Every aspect of the design has been optimized to deliver the highest speeds with massive throughput. With the CS-4, AI is so fast that it fundamentally reshapes product experiences.”
The rack scale CS-4 is built from three of the newly released Wafer Scale Engine 3 Turbo (WSE-3T). The CS-4 delivers 750 PFLOPs of AI compute, 7.2 terabits per second of I/O, and 129.6 petabytes per second of memory bandwidth. Total compute fabric bandwidth jumps to 160.5 petabytes per second, and wafer to wafer latency drops as low as two microseconds, enabling the creation of very large clusters and the support of models with over 50 trillion parameters.
“CS-4 makes dramatic improvements in system deployability, reliability, and networking, which enables scaling performance to larger models for large scale token factories,” said Dylan Patel, founder and CEO, SemiAnalysis. “CS-4 will scale ultrafast tokens for larger models and significant user volumes. The Cerebras Backpack is focused on time to market. As ultrafast inference continues to grow, Cerebras’ newest hardware will help ensure frontier speeds.”
A New Leader in AI Inference Speed and Capacity
The CS-4 sets a new high watermark for inference speed. In a head-to-head comparison on GPT-OSS-120B, when given identical prompts, the CS-4 delivers[1] more than 4,400 tokens second per user (TPS/user), up to 30 times faster than GPU solutions.
“Being 30 times faster doesn’t just make a response feel fast. It gives an agentic system room for more than an order of magnitude as much reasoning, verification, or tool use in the same wall-clock time,” said Sean Lie, CTO and co-founder of Cerebras. “That’s the difference CS-4 makes for real production workloads.”
A New Processor
CS-4 is powered by the newly announced WSE-3 Turbo (WSE-3T). Like the WSE-3, the WSE-3T is the largest AI processor ever built, containing four trillion transistors and 900,000 AI-optimized cores across 46,225 square millimeters of silicon, with 44GB of SRAM integrated directly on the wafer.
The WSE-3T doubles AI compute to 250 PFLOPS per wafer and doubles memory bandwidth to 43.2 petabytes per second. And since memory bandwidth is the determining factor in driving speed and throughput, this translates to a step-change improvement in both. The on-chip fabric bandwidth and off-chip I/O both double to 53.5 petabytes per second and 2.4 terabits per second respectively. I/O latency shrinks from five microseconds to as low as two microseconds.
New System and Rack Design
CS-4 is the first iteration of the new Cerebras Nexus Platform Architecture. It is built around a modular concept with three foundational elements: Compute, Power and I/O. Cerebras brings significant innovation to each element. Modularity enables each element to scale independently so innovations get to market faster. The modular architecture also supports extremely rapid deployment and upgrades.
Pluggable Backpack Design: Cerebras has fundamentally re-imagined the compute subsystem into a rear mounted “backpack” that attaches vertically to the power array. Each Wafer-Scale Backpack is a self-contained assembly that folds power conversion, direct liquid cooling, high-speed I/O, and control electronics into a compact, three-dimensional package built directly around the wafer. By decoupling compute from the power supplies, the Wafer-Scale Backpack simplifies manufacturing and reduces deployment time from days to hours. Compared with the prior-generation system, the Wafer-Scale Backpack has 50% fewer components and uses 60% more automated manufacturing.
High-Density Power Delivery: The Nexus Platform Architecture drives significant power delivery improvements. For example, by moving power conversion 100x closer to the processors – from roughly 50 millimeters away from the processor as on conventional GPU boards to approximately 0.5 millimeters – CS-4 nearly eliminates board-level power loss. This delivers twice as much power to the WSE-3T, enabling higher operating frequencies and faster token generation.
New Modular I/O Subsystem: CS-4 introduces a new programmable I/O subsystem that supports two connectivity modes while doubling I/O bandwidth and reducing latency. More bandwidth and lower latency benefits both aggregated and disaggregated solutions.
The fully programmable Wafer I/O Module supports standards-based RoCE v2 RDMA over Ethernet for seamless integration into existing infrastructure and with an ecosystem of heterogeneous systems. Aggregate off-wafer bandwidth doubles to 2.4 terabits per second per wafer and 7.2 terabits per CS-4 rack solution.
The Wafer I/O Module also supports a new communication mode, called Direct Wafer Links, which enables wafers to be linked within and across racks without a switch. Direct Wafer Links enables wafer-to-wafer latency as low as two microseconds. This low latency communication will allow the creation of massive CS-4 clusters and the ability to support models with more than 50 trillion parameters.
Programmable low latency I/O is particularly beneficial for heterogeneous disaggregated inference, in which a purpose-built prefill engine processes an incoming prompt and then hands it to Cerebras for ultra-low latency decode. The combination of programmability, standards-based interfaces, and very low latency will allow the rapid creation of disaggregated solutions from different Cerebras ecosystem partners, like AMD Helios and AWS Trainium.
First CS-4 shipments begin this quarter. Full system specifications are available in the CS-4 datasheet at https://www.cerebras.ai/cs4-datasheet.
[1] Actual throughput varies by model architecture, context length, precision, and serving configuration.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
Cerebras Disclosure Information
Cerebras uses its investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras’ press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements about the anticipated benefits of CS-4 and WSE-3 Turbo, the rapid creation of disaggregated solutions, and the timing of CS-4 shipments; and any assumptions relating to the foregoing. The words "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "objective," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Cerebras’ control. These risks and uncertainties include, but are not limited to: Cerebras’ ability to sustain and manage its growth, access borrowings and other sources of capital on acceptable terms, and deploy available capital to support growth; its history of net losses and ability to achieve and maintain profitability; its limited operating history at its current scale and ability to accurately forecast revenue and appropriately budget and manage expenses; its dependence on a limited number of significant customers, including OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence, and AWS, and the potential impact of any reduction in demand from, material adverse development in its relationships with, or failure to meet its obligations to, such customers, including under its Master Relationship Agreement with OpenAI; the timing, execution and expected benefits of its strategic customer, partner and financing arrangements; its historical reliance on sales of hardware systems and the early-stage, rapidly evolving market for its cloud-based offerings and AI infrastructure; its ability to secure sufficient data center capacity and capital to support its cloud-based offerings; its ability to launch new offerings and add new product capabilities; and its ability to compete effectively in the rapidly evolving and competitive market for AI computing solutions.
Cerebras’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Accordingly, undue reliance should not be placed on such statements. These forward-looking statements are made as of the date they were first issued and are based on information available to Cerebras together with Cerebras’ expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the SEC, including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.
Nebius a CoreWeave těží z rostoucích cen služeb AI datacenter, protože poptávka po výpočetní kapacitě dál převyšuje nabídku. Wedbush vidí v tomto trendu podporu pro další růst AI infrastruktury.
are seeing pricing trends in AI data center services that could support further growth as demand for computing capacity continues to exceed available supply.
Wedbush analyst Matt Bryson said recent earnings commentary from both companies points to favorable economics for AI infrastructure. He estimates that customers can recover investments in AI servers within roughly three years or less, supporting continued spending on training and inference capacity.
Bryson said the trend may also benefit companies supplying hardware for AI data centers. He highlighted Cerebras (CBRS), which is expanding its infrastructure plans for 2027 and working to secure additional wafer supply for its wafer-scale processors.
Cerebras recently reported second-quarter results that led to a decline in its shares, but the Wedbush analyst expects upcoming company events could provide additional information on its expansion plans.
The broader assessment suggests AI infrastructure investment may have more room to grow. For companies such as Nebius and CoreWeave, higher pricing and sustained demand could provide support as they add capacity to serve customers developing and running AI models.
Cerebras (CBRS - Free Report) reported $209.87 million in revenue for the quarter ended June 2026, representing no change year over year. EPS of -$0.04 for the same period compares to $0 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $194.16 million, representing a surprise of +8.09%. The company delivered an EPS surprise of +80.95%, with the consensus EPS estimate being -$0.21.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cerebras performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Cloud and other services: $125.99 million versus $114.99 million estimated by two analysts on average.Revenue- Hardware: $54.12 million versus $79.18 million estimated by two analysts on average.Core gross profit- Cloud and Other Services: $53.34 million versus the two-analyst average estimate of $53.75 million.Core gross profit- Hardware: $31.88 million versus $43.12 million estimated by two analysts on average.View all Key Company Metrics for Cerebras here>>>
Shares of Cerebras have returned +15.2% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Cerebras Systems Inc. (CBRS) Q2 2026 Earnings Call August 12, 2026 5:00 PM EDT
Company Participants
Sean Dorsey
Andrew Feldman - Co-Founder, CEO, President & Chairman
Robert Komin - Senior VP, CFO & Treasurer
Conference Call Participants
Timothy Arcuri - UBS Investment Bank, Research Division
Joshua Buchalter - TD Cowen, Research Division
Kyle Bleustein - Barclays Bank PLC, Research Division
Quinn Bolton - Needham & Company, LLC, Research Division
Joseph Moore - Morgan Stanley, Research Division
Vijay Rakesh - Mizuho Securities USA LLC, Research Division
Presentation
Operator
Good afternoon, and welcome to the Cerebras Systems Second Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Please note that today's call is being recorded. I will now turn the call over to Sean Dorsey, Head of Investor Relations. Please go ahead.
Sean Dorsey
Thank you, operator. Good afternoon, everyone, and welcome to Cerebras Systems Q2 2026 Earnings Call. Earlier today, we issued our press release and posted our supplemental earnings presentation to the Investor Relations section of our website. A replay of this webcast will also be available on our Investor Relations website following the call. Joining me today are Andrew Feldman, our Co-Founder, Chief Executive Officer and President; and Bob Komin, our Chief Financial Officer.
Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements under the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, market opportunity, customer demand, product road map, technology leadership, supply chain, operating model and outlook for Q3 and full year 2026.
Forward-looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks are described
Cerebras Systems oznámila rekordní tržby za 2. čtvrtletí ve výši 209,9 mil. USD a zvýšila celoroční výhled tržeb na 880 až 890 mil. USD. Firma zároveň dál rozšiřuje kapacitu datacenter i výrobu.
AMD and Cerebras Create A New Blueprint For HardwareCerebras Systems NASDAQ: CBRS reported record second-quarter core revenue and raised its full-year outlook, as the AI infrastructure company said it is expanding data-center capacity, manufacturing output and customer deployments to support anticipated growth beginning in 2027.
Chief Executive Officer Andrew Feldman said the company beat its guidance for core revenue, core gross margin and core operating margin during the quarter, which also included the completion of Cerebras’ public offering. Management characterized 2026 as a “foundation-building year” as it prepares to serve more than $25 billion in remaining performance obligations, or RPO.
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CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test“We delivered record core revenue and beat guidance on all metrics,” Feldman said. He added that the company expects to more than triple core revenue in 2027 and continue growing at multiples in subsequent years, based on progress in capacity, technology and customer additions.
Revenue Growth and Updated Outlook Chief Financial Officer Bob Komin said second-quarter core revenue was $209.9 million, up 103% from a year earlier. Core cloud and other services revenue rose 287% year over year to $127.7 million, while core hardware revenue increased 17% to $82.1 million.
AI Insider Activity: Are Sales Across 3 Key Stocks Noteworthy or Just Noise?Komin said cloud and services growth reflected the ramp of the company’s OpenAI deployment, greater usage from other cloud customers and timing related to hardware customers’ data-center expansions. He said the company has several late-stage hardware opportunities representing hundreds of millions of dollars, along with new cloud opportunities for 2027.
Core gross margin was 40.6%, up about 940 basis points from the prior-year quarter. Core cloud and other services gross margin was 41.8%, improving 1,600 basis points year over year. Core hardware gross margin was 38.8%, up 510 basis points from a year earlier. Core operating loss was $33.6 million, while core operating margin improved to negative 16% from negative 42% a year earlier. Management said sequential gross margin declined from 46.5% in the first quarter because Cerebras has temporarily rented back some of its systems from cloud customers to meet demand through its private cloud. Komin said this higher-cost rented capacity reduced second-quarter core gross margin by approximately 500 basis points.
The company expects the third quarter to be the low point for core gross margin before an anticipated improvement in the fourth quarter as it brings online more data centers using company-owned systems. Cerebras expects core gross margin to trend toward its target of more than 60% over time.
For the third quarter, Cerebras forecast core revenue of $214 million to $216 million, core gross margin of 38% to 40%, and core operating margin of negative 25% to negative 23%. For the full year, it raised its core revenue outlook to $880 million to $890 million, core gross margin guidance to 41% to 43%, and core operating margin guidance to negative 19% to negative 17%.
Capacity Build-Out Targets Data-Center Bottleneck Feldman said data-center space remains a bottleneck for both Cerebras and the wider AI industry. Over the past seven months, the company secured more than 600 megawatts of data-center capacity that is either operating now or contracted for delivery by the end of 2027. Its pipeline for further expansion is measured in gigawatts, he said.
The company listed capacity in Alabama, Dallas, Denver, Minneapolis, Santa Clara and Stockton, as well as sites in France, Finland, Manitoba, Montreal, Norway, Saskatchewan and Toronto.
Cerebras also said it is expanding manufacturing through Flex and Sanmina. Komin said manufacturing capacity was already four times above its level in the first half of 2025 and is expected to exceed a tenfold increase during 2026. The company has contracted facilities supporting an additional three to four times growth in 2027, Feldman said in response to an analyst question.
Management said its supply relationship with TSMC has secured wafers needed for planned growth. Feldman noted that Cerebras uses TSMC’s 5-nanometer node and does not use high-bandwidth memory, CoWoS packaging or 3-nanometer fabrication capacity, which he said reduces exposure to some industry supply constraints.
Inference Technology and Disaggregation Plans Feldman said Cerebras added support during the quarter for OpenAI’s GPT-5.6 Sol model and said the company can serve the model at ten times faster speed. He said supporting frontier models has given Cerebras additional insight that can inform its hardware and software roadmap.
The company also highlighted disaggregated inference partnerships with AMD and AWS. In a disaggregated setup, GPUs or other processors handle the prefill stage of inference, while Cerebras systems handle decode, the process of generating output tokens.
According to Feldman, the combined AMD Helios and Cerebras configuration is designed to maintain Cerebras’ speed while increasing throughput fivefold. He said higher throughput can increase tokens produced per system and per watt, potentially improving data-center economics and gross margins. Cerebras expects disaggregated inference using GPUs to be deployed and available in the fourth quarter, he said during the question-and-answer session.
The company plans to unveil its fourth-generation CS-4 system at its Supernova conference, while remaining on track to launch the CS-5 in the second half of 2027. Management expects new systems to double speed annually for the next several years and plans to increase throughput by more than 20 times over the next 18 months.
Customer Expansion and AWS Availability Feldman said Cerebras expects its offering to become generally available through AWS’s Amazon Bedrock platform in the first quarter of 2027. He said the company expects first hyperscaler revenue beginning in mid-2027, with a ramp through 2028 and beyond. The company’s $25.4 billion RPO at June 30 did not include backlog from AWS or other hyperscalers, management said.
Outside of OpenAI and hyperscalers, Cerebras signed six deals exceeding $30 million in the second quarter. The company cited new agreements with Figma, Cognition, Lovable, Block, AlphaSense, GSK and CrowdStrike.
Feldman said OpenAI is expected to remain a meaningful share of revenue next year, though AWS, coding companies and security applications are expected to become larger portions of the business over time. He also said the company sees emerging “neo-cloud” providers as a potentially important part of its business in 2027.
Cerebras ended the quarter with more than $8.6 billion in cash equivalents, restricted cash and marketable securities, along with an unused revolving credit facility of up to $850 million.
About Cerebras Systems (NASDAQ:CBRS)Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.
In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Cerebras roste o 11,58 % na 261,95 USD před dnešními výsledky za 2. čtvrtletí, které mají přijít po uzavření trhu. Wall Street čeká ztrátu 17 centů na akcii při tržbách 194,20 milionu USD.
Cerebras Systems Inc. (NASDAQ:CBRS) shares are soaring Wednesday as investors position ahead of the AI chipmaker’s second-quarter results, due after the market closes today.
Cerebras Systems stock is charging ahead with explosive momentum. What’s fueling CBRS momentum? Cerebras Heads Into Q2 Earnings After Landmark OpenAI and AWS DealsWall Street is projecting a second-quarter loss of 17 cents per share on revenue of $194.20 million. That figure lines up closely with Cerebras’ own guidance of approximately $194 million in core revenue, issued alongside first-quarter results, suggesting the Street expects the company to land in line with its own forecast.
If Cerebras meets that mark, the results would build on a first quarter in which core revenue reached $191.3 million, up 12% sequentially and 92% year-over-year.
The first quarter’s biggest headline may have been Cerebras’ new agreement with OpenAI, a multi-year deal valued at more than $20 billion under which OpenAI will deploy 750 megawatts of Cerebras’ inference computing capacity. The two companies also co-launched Codex-Spark, a coding model built for near-instant responses. Cerebras separately began a multi-year partnership with Amazon Web Services to scale fast inference computing, under which AWS’s Trainium 3 chips will handle prefill processing while Cerebras’ CS-3 systems run decoding.
CEO Andrew Feldman said the company’s wafer-scale chip technology delivers the fastest AI processing available, arguing that speed advantage is fueling growing demand from customers such as OpenAI and AWS.
Cerebras Systems Technical Levels to WatchCBRS is trading well above its short-term trend markers, sitting about 27% over the 20-day SMA at $207.43 and about 26% over the 50-day SMA at $208.82. That positioning shows strong upside extension compared with the recent consolidation zone. Even so, the 20-day SMA is still below the 50-day SMA, which keeps the longer-term trend repair process unfinished even as price moves higher.
MACD is offering the clearest read on momentum. It is above its signal line and the histogram is positive, which points to improving momentum compared with the previous downswing. In simple terms, MACD above the signal line suggests sellers are losing influence and buyers are gaining control even if the broader trend has not fully shifted.
From a levels standpoint, the stock is sitting near the midpoint of its 52-week range, which spans from $160.81 to $386.34. After a swing low in June and a swing high in May, the current move looks like a continuation attempt off that June base. Trend-focused traders will be watching to see if price can stay above the short-term averages long enough to eventually flip the 20-day and 50-day relationship back to bullish.
Key Resistance: $386.34 Key Support: $208.82 CBRS Shares Are FlyingCBRS Price Action: Cerebras shares were up 11.58% at $261.95 at the time of publication on Wednesday, according to Benzinga Pro.
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A screen displays the Cerebras Systems, an artificial intelligence chip maker, logo during the company’s IPO at the Nasdaq Market site in New York City, U.S., May 14, 2026. REUTERS/Eduardo Munoz Purchase Licensing Rights, opens new tab
Aug 12 (Reuters) - Cerebras Systems (CBRS.O), opens new tab raised its annual revenue and gross margin forecasts on Wednesday, buoyed by robust demand for its chips from companies ramping up data-center capacity to power AI services.
Still, its shares were down more than 14% in extended trading after closing up 11.6% in the regular session. The stock has gained 15.5% week-to-date.
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The chip designer is banking on growing demand for inference, the data crunching that occurs when a user queries a chatbot, as it seeks to challenge Nvidia's (NVDA.O), opens new tab dominance in the AI processor market.
Cerebras' flagship wafer-scale engine (WSE) is a single chip the size of a dinner plate containing trillions of transistors, a design that it says is more efficient than connecting thousands of smaller graphics processors together, as Nvidia does.
By placing memory directly on the chip, the WSE is built to accelerate inference and reduce the data-transfer delays associated with conventional graphics processors that rely on separate high-bandwidth memory.
Placing memory directly on the chip has lessened the impact of surging memory prices and placed it in a better position to compete with Nvidia, Cerebras CEO Andrew Feldman told Reuters in an interview.
"Nvidia's prices have gone through the roof because of HBM prices," Feldman said, referring to the high-bandwidth memory included with AI processors. "This is a battleground, and if they can't deliver or they're having significant component price increases, of course that helps."
The Sunnyvale, California-based company expects 2026 adjusted revenue between $880 million and $890 million, higher than its previous forecast of $855 million to $865 million.
"We have made rapid progress in key areas required to deliver exceptional growth against our remaining performance obligations of $25.4 billion (contract revenue expected to be recognized in the future), and plan to more than triple revenue in 2027," finance chief Bob Komin said.
Annual adjusted gross margin is forecast at 41% to 43%, up from 38% to 41% projected earlier. Analysts, on average, estimate 35.89%, according to data compiled by LSEG.
Second-quarter sales rose 74.3% to $180.11 million. Adjusted loss was $6.91 million, narrower than the $40.5-million loss a year ago.
Cerebras is racing to expand chip volumes to support a $20 billion multi-year agreement to provide AI compute to OpenAI, a deal viewed as key to justifying its valuation.
Its core cloud and services revenue, which reflects the OpenAI ramp, nearly quadrupled to $127.73 million in the second quarter.
Reporting by Anhata Rooprai in Bengaluru and Max A. Cherney in San Francisco; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron’s magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.
Cerebras Systems raised its full-year guidance in the second earnings report following the chipmaker's IPO in May. But the stock tumbled about 14% in extended trading.
Here's how it did in the second quarter. Results aren't comparable to analyst estimates.
Revenue: $210 million Loss per share: $2.89 Cerebras said in a statement on Wednesday that it expects core revenue of between $214 and $216 million in revenue this quarter. Analysts expected $212.6 million in revenue, without specifying if that refers to core revenue, according to LSEG.
The $210 million sales figure for the second quarter represents core revenue. Cerebras also reported a GAAP revenue figure of $180.1 million, which excludes "pass-through revenue."
The company recorded a net loss of $450.5 million, after finishing with a profit of $309.5 million, or $1.91 per share, a year earlier. Most of the loss is tied to stock-compensation costs of $386.6 million.
The company raised its full-year outlook, and now expects core revenue of between $880 and $890 million, up from a prior range of $855 million to $865 million.
Cerebras CEO Andrew Feldman said in an interview that AI demand is "through the roof," and that companies are paying up for its specialty inference chips.
Cerebras is challenging AI chip leader Nvidia for some AI tasks, especially those that need "low latency," or quick responses for interactivity. The company calls it "fast inference." The company said its core gross margin will expand to between 38% and 40% in the current quarter, addressing a concern for investors.
"Gross margins are are in a good spot, and growing, because fast inference is priced at a premium," Feldman said in an interview, adding that Cerebras was able to increase the AI output of its systems.
Cerebras went public on the Nasdaq in May, capitalizing on investor interest in semiconductors that can run AI models. It priced its offering at $185 and raised $6.4 billion in the offering. The stock peaked in May and has fallen since, but closed on Wednesday at $262.06, up 42% from its IPO.
The chipmaker has $25.4 billion in remaining performance obligations, which it said was a sign of "extraordinary future demand." Feldman said that as Cerebras grows, it will benefit from larger scale. The company also said it expects revenue to triple in the next fiscal year.
"We will manufacture more efficiently. We'll get better pricing on componentry. We'll amortize our manufacturing organization over more units," Feldman said. "All of those point up and to the right."
In recent weeks, Cerebras a partnership with Nvidia rival Advanced Micro Devices with products going into production later this year, and said that OpenAI can use its chips to serve its latest model, GPT 5.6- Sol. Cerebras also offers access to its chips through its cloud, which reported $126 million in revenue during the June quarter.
Cerebras Systems ve 2. čtvrtletí nesplnila odhady tržeb ani ztráty na akcii, když vykázala tržby 180,11 milionu USD a ztrátu 2,98 USD na akcii. Akcie v prodlouženém obchodování klesly o 9,26 %.
Cerebras Systems Inc. (NASDAQ:CBRS) posted its second-quarter results after Wednesday’s closing bell, missing analyst estimates on the top and bottom lines.
Here’s a look at the details inside the report.
CBRS stock is moving. Watch the price action here. Cerebras Q2 Details Cerebras Systems reported GAAP quarterly losses of $2.98 per share, according to Benzinga Pro data.
Quarterly revenue came in at $180.11 million which missed the Street estimate of $194.2 million by 7.26%.
“This was an outstanding quarter for Cerebras. Core revenue more than doubled to $210 million, and our cloud business nearly quadrupled year-over-year,” said Andrew Feldman, Cerebras co-founder and CEO.
“Speed changes what AI can do. It makes AI more useful, more productive, and opens entirely new markets. As a result, the demand for fast inference is enormous and Cerebras is scaling to meet it, securing more data center capacity, expanding manufacturing, and growing with customers and partners including OpenAI, AWS, AMD, and CrowdStrike,” Feldman added.
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CBRS Stock Price Activity: According to data from Benzinga Pro, Cerebras stock was down 9.26% to $238.96 in Wednesday’s extended trading.
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Cathie Wood přes Ark Invest nakoupila akcie Cerebras po zveřejnění výsledků, kdy akcie spadly na nové minimum pod 161 USD a byly více než 58 % pod prvním skokem po IPO. Firma přitom oznámila 92% růst tržeb a nižší čistou ztrátu.
One of the hottest IPOs of the year cooled considerably after publishing its first earnings report as a publicly traded company. Cathie Wood's Ark Invest pounced on the stock's weakness to bolster its position.
I'm talking about Cerebras Systems (CBRS +4.66%), the unique artificial intelligence (AI) hardware company that had a splashy market debut in May. Initially greeted as The Next Big AI Stock, Cerebras shares have retreated from that early hype and hope. Here's a glance at Ark's buy-ins of this unique tech company, with a sharp look at those post-earnings transactions.
Image source: Getty Images.
Artificial intelligence, real hope Wood and her team were enthusiastic buyers of Cerebras from the get-go, snapping up 105,616 shares on its first day of trading in mid-May for around $32.8 million.
That averages to $310.56 per share, just shy of the level at which the stock closed that trading session (it had opened at $350, well above its $185 IPO price, but ultimately settled lower). In follow-on purchases, Ark added to its Cerebras holdings.
Those purchased shares were placed into two Ark exchange-traded funds (ETFs), Ark Innovation ETF and Ark Next Generation Internet ETF. In three subsequent trading sessions that month, Ark loaded up on an additional 226,430 shares and placed them into the two ETFs.
The more interesting purchases occurred the following month. It was surely no coincidence that these were made just before and after Cerebras released that earnings report.
With two pre-earnings buys, Ark paid around $28.27 million for 124,949 shares. Just after earnings were released, Ark again loaded up, purchasing 111,989 shares for $20.41 million. The average per-share price of the pre-earnings moves was $226.25, while that for the after-earnings action was $182.26.
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Inflated expectations Cerebras took a hard hit to its stock price after earnings. It's not that the fiscal first quarter was disastrous; actually, the company posted robust 92% revenue growth and did a good job narrowing its net loss. More encouragingly, it announced partnerships with cloud heavyweight Amazon Web Services and top AI developer OpenAI.
The catch was that the company's lofty premium to its IPO price at the time required significant outperformance, and investors didn't get it. Mr. Market punished Cerebras by sending its shares to a new low of under $161 apiece. They've since recovered somewhat, to almost $200. Ark's post-earnings buys then look wise now.
Cerebras' specialty is wafer-scale engine (WSE) technology -- essentially a powerful processor stamped on a single, large silicon wafer, as opposed to a standard graphics processing unit divided into hundreds of small chips. This is ideal for AI inference (the execution phase of AI models, as opposed to training).
Generation speeds are much faster with WSEs, giving Cerebras a huge technological advantage with inference.
That's a major reason for the immediate post-IPO excitement and the disappointment behind the otherwise very promising company's earnings report. Even after the price tumble, Cerebras' valuations are high. If the company can realize its vast potential, though, the stock could really soar.
I'd bet that's what Wood and her managers are betting on, and investors with a similarly high risk tolerance and some patience should consider doing the same.
Kaplan Fox & Kilsheimer LLP vyšetřuje možné porušení zákonů o cenných papírech u Cerebras Systems Inc. (CBRS). Akcie po oznámení o marži klesly 24. června na 182,26 USD z 226,72 USD den předtím, tedy o 19,61 %.
New York, New York--(Newsfile Corp. - July 24, 2026) - Kaplan Fox & Kilsheimer LLP is investigating potential securities violations against Cerebras Systems Inc. ("Cerebras" or the "Company") (NASDAQ: CBRS).
CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS INVESTIGATION
If you are a Cerebras investor and have suffered losses, or if you have information that could assist in the Cerebras investigation, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (212) 329-8571.
Cerebras is an artificial intelligence (AI) infrastructure company that designs and manufactures AI compute platforms including processors and data centers. On or around May 14, 2026, Cerebras conducted an initial public offering ("IPO"), selling 30 million shares of Class A common stock at an offer price of $185 per share.
On June 23, 2026, after market close, Cerebras announced in a press release financial results for the first quarter of fiscal year 2026 and outlook for the second quarter of fiscal year 2026. During the subsequent earnings call, the Chief Financial Officer stated that "[f]or the rest of 2026, in order to accelerate our ability to service the significant near-term demand in our contracted backlog, we've chosen to make more capacity available sooner by temporarily renting our own systems back from an existing customer while we aggressively build out and deploy our own data center capacity. The additional cost of renting third-party capacity will depress core cloud and other services margin temporarily from current levels. We expect the impact to be a decrease of 10 to 15 margin points based on the volumes we are now anticipating before beginning to [ramp back] towards our target margin of 60% plus as we transition away from our rented systems."
Following this news, the price of Cerebras stock declined from a closing price on June 23, 2026 of $226.72 to close at $182.26 per share on June 24, 2026, a decline of $44.26 per share, or by 19.61%.
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Cerebras v 1. čtvrtletí snížila ztrátu na 4 centy na akcii a tržby vzrostly meziročně o 94 % na 193,4 milionu USD. Firma zároveň čeká ve 2. čtvrtletí hlavní tržby 194 milionů USD.
It has been about a month since the last earnings report for Cerebras (CBRS - Free Report) . Shares have added about 15.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cerebras due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Cerebras Q1 Earnings Beat Estimates, Revenues Increase Y/YCerebras reported a first-quarter 2026 loss of 4 cents per share, 71.43% narrower than the Zacks Consensus Estimate of a loss of 14 cents. The GAAP net loss per share narrowed year over year to 22 cents from 46 cents.
Revenues were $193.4 million, up 94% year over year and 13% sequentially, and topped the consensus estimate by 7.04%. Strength was driven by demand for AI infrastructure, with cloud and other services revenues up 178% and a new OpenAI agreement for 750 megawatts of high-speed inference compute. Core revenues, a non-GAAP measure that excludes customer warrant amortization and data center pass-through items, were $191.3 million, up 92% from the year-ago quarter.
The quarter benefited from strength across hardware and cloud-based offerings. Hardware revenues were $110.6 million, rising 59% year over year, while cloud and other services revenues were $82.8 million, reflecting the rapid adoption of Cerebras’ AI infrastructure platform.
Cerebras Gains From Strategic AI DealsThe company announced a multi-year deal with OpenAI valued at more than $20 billion. Under the agreement, OpenAI will deploy 750 megawatts of Cerebras’ high-speed inference compute over the next several years.
Cerebras also co-launched Codex-Spark, a model built for near-instant coding workflows where latency matters. The model delivers more than 1,000 tokens per second, underscoring the company’s focus on faster inference for interactive AI applications.
CBRS Expands Cloud Reach With AWSCerebras began a multi-year partnership with Amazon’s cloud computing platform, Amazon Web Services (AWS), to bring fast inference to a broader base of startups, AI-native companies and enterprises. The partnership expands the company’s distribution reach at a time when demand for low-latency AI infrastructure continues to scale.
The companies plan to launch a disaggregated inference strategy. AWS Trainium 3 chips will perform the prefill stage, while the Cerebras CS-3 will handle high-speed inference for decoding, combining the strengths of both platforms.
Cerebras’ Product Trials Add MomentumThe company launched enterprise customer trials of Kimi K2.6 and Gemma 4 during the quarter. Kimi K2.6 is an open-weight frontier model, and the first trillion-parameter model served on Cerebras.
Kimi K2.6 achieved performance approaching 1,000 tokens per second, as independently measured by Artificial Analysis. Gemma 4 31B, part of Google DeepMind’s open-weight Gemma family, runs an order of magnitude faster on Cerebras based on scores on the Artificial Analysis Intelligence Index.
CBRS’ Q1 Operating DetailsIn the first quarter of 2026, the GAAP gross margin was 45%. Hardware’s gross margin was 41%, while cloud and other services’ gross margin came in at 49%.
The core gross margin was 47%. The core hardware gross margin was 42%, whereas the core cloud and other services gross margin was 53%, showing a stronger profitability profile for the company’s non-GAAP cloud and services operations.
Operating expenses totaled $101.2 million. Research and development expenses were $75.5 million, sales and marketing expenses were $14.7 million, and general and administrative expenses were $11 million, reflecting continued investment in product innovation and market expansion.
The GAAP loss from operations was $15 million compared with $28.5 million in the year-ago quarter. The core operating loss narrowed to $3.5 million from $19.3 million a year earlier.
In the first quarter of 2026, adjusted EBITDA turned positive at $12.7 million from a loss of $15.4 million in the prior year.
CBRS’ Balance SheetThe balance sheet strengthened meaningfully. As of March 31, 2026, cash, cash equivalents, restricted cash, and short-term investments were $3.3 billion.
Net cash provided by operating activities was $12.3 million compared with net cash used in operating activities of $54.9 million.
CBRS’ Outlook Signals Continued ExpansionFor the second quarter of 2026, Cerebras expects core revenues of $194 million, implying 88% year-over-year growth. The core gross margin is expected to be 36-38%.
For 2026, management expects core revenues of $855-$865 million, indicating a 69% year-over-year surge at the midpoint. The core gross margin is projected to be 38-41%.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 27.2% due to these changes.
VGM ScoresCurrently, Cerebras has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cerebras has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Cerebras Systems oznámila, že výsledky za 2. čtvrtletí 2026 zveřejní po uzavření trhu ve středu 12. srpna 2026. Téhož dne uspořádá konferenční hovor s investory.
July 22, 2026 16:03 ET | Source: Cerebras Systems Inc.
SUNNYVALE, Calif., July 22, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems Inc. (NASDAQ: CBRS), maker of the world’s fastest AI infrastructure, announced it will release second-quarter 2026 financial results after the market closes on Wednesday, August 12, 2026.
Cerebras will host a conference call to discuss its financial results at 2 p.m. PT (5 p.m. ET) on the same day. The live webcast of the earnings conference call can be accessed at the Cerebras Systems Investor Relations website at investors.cerebras.ai. A replay of the webcast will be available at the same website.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
Pomerantz LLP vyšetřuje Cerebras Systems kvůli možnému podvodu s cennými papíry po IPO a slabším výsledkům za 1. čtvrtletí 2026. Akcie po zprávě 24. června klesly o 19,61 % na 182,26 USD.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Cerebras and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around May 14, 2026, Cerebras completed its initial public offering (“IPO”), selling 30 million shares of Class A common stock priced at $185.00 per share. Then, on June 24, 2026, Cerebras reported its financial results for the first quarter of 2026. Among other items, Cerebras reported a loss of $0.22 per share, missing analyst estimates of a $0.16-per-share loss. In addition, Cerebras forecast a narrower gross margin in its core business, excluding impact from customer warrants and data center pass-through revenues.
On this news, Cerebras’s stock price fell $44.46 per share, or 19.61%, to close at $182.26 per share on June 24, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Pomerantz LLP vyšetřuje možné porušení zákonů u Cerebras po IPO a po zveřejnění výsledků za 1. čtvrtletí 2026. Akcie 24. června klesly o 44,46 USD, tedy o 19,61 %, na 182,26 USD.
NEW YORK, July 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Cerebras and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around May 14, 2026, Cerebras completed its initial public offering (“IPO”), selling 30 million shares of Class A common stock priced at $185.00 per share. Then, on June 24, 2026, Cerebras reported its financial results for the first quarter of 2026. Among other items, Cerebras reported a loss of $0.22 per share, missing analyst estimates of a $0.16-per-share loss. In addition, Cerebras forecast a narrower gross margin in its core business, excluding impact from customer warrants and data center pass-through revenues.
On this news, Cerebras’s stock price fell $44.46 per share, or 19.61%, to close at $182.26 per share on June 24, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
UBS uvedla, že nové evropské datové centrum Cerebras o kapacitě 200 MW zvyšuje důvěru v rampu infrastruktury pro OpenAI a snižuje riziko realizace. Akcie vzrostly o 8 % na zhruba 214 USD.
Cerebras Systems (NASDAQ: CBRS) could see improved confidence around its OpenAI infrastructure ramp following its latest 200MW European data center capacity announcement, UBS analysts wrote, noting the expansion helps reduce execution risk around the company’s cloud and colocation ambitions.
UBS wrote that the additional European capacity provides incremental support for OpenAI’s first tranche deployment, an area where investors had expressed concerns given Cerebras’ position as a relatively new entrant to the cloud and colocation leasing market.
The firm added that the expansion increases confidence in OpenAI’s ramp while providing Cerebras with flexibility to pursue additional business opportunities as the sites come online over the next four to six quarters.
Cerebras announced plans to bring its first European data center capacity online by the end of 2026, with the full 200MW expected to be available by the end of 2027. UBS estimates the new capacity represents a meaningful increase from the company’s previously announced 150MW to 200MW of contracted capacity across projects in the U.S. and Canada.
Including the European expansion and previously disclosed infrastructure commitments, UBS estimates Cerebras now has visibility to approximately 410MW of announced contracted power capacity. Those commitments include Nautilus, Colovore, Digi Power X, WhiteFiber, Scale, and Bell’s 300MW facility announced earlier this year, which UBS assumes is split roughly evenly between Cerebras and CoreWeave.
The analysts wrote that having approximately 400MW of the 500MW required for OpenAI’s first two tranches effectively secured, assuming both are deployed through cloud infrastructure, supports confidence in the deployment timeline. UBS noted that OpenAI retains flexibility to deploy the second tranche through hardware deployments in its own data centers or through cloud partners.
UBS expects the second OpenAI tranche to ramp relatively quickly during the second half of 2027 and wrote that it would not be surprised to see additional agreements with large colocation providers over the coming quarters if deployment continues largely through Cerebras’ cloud platform.
The firm maintained its price target for Cerebras at $320, as shares traded hands up 8% at about $214.
UBS’s valuation is based on an enterprise value-to-sales multiple applied to 2029 estimates and discounted back to 2027. The firm uses an average multiple of around 9 times 2029 estimated EV-to-sales from compute peers and applies it to its $13.6 billion sales estimate, which it wrote could prove conservative as OpenAI and AWS deployments ramp.
Cerebras Systems a OpenAI oznámily infrastrukturní spolupráci v hodnotě více než 20 miliard USD na výpočetní kapacitu. Cerebras zároveň buduje v Evropě datová centra o výkonu 200 megawattů, včetně Lyonu ve Francii, Norska a Finska.
AI Insider Activity: Are Sales Across 3 Key Stocks Noteworthy or Just Noise?Cerebras Systems NASDAQ: CBRS and OpenAI executives used a Paris technology event to outline the companies’ expanding infrastructure partnership, emphasizing faster AI inference, enterprise adoption of agents and a new European data center build-out.
Andrew Feldman, CEO of Cerebras, said the companies’ collaboration began after OpenAI identified fast inference as a key requirement as AI models became more widely useful in workplace applications. Feldman said OpenAI CEO Sam Altman contacted him in the summer of 2025 to discuss the need for faster inference, leading to what Feldman described as “one of the largest deals in Silicon Valley history.” He said the agreement was “north of $20 billion” over several years for compute capacity.
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Cerebras Systems, Inc: The Next Rags-to-Riches AI Story?Sachin Katti, OpenAI’s Head of Industrial Compute, said the company increasingly views latency as a critical product feature as AI becomes part of daily work. He compared the shift to the evolution of internet search, where quality came first but speed later became central to user growth and revenue.
“Latency is a very critical product ingredient for us going forward,” Katti said. He added that OpenAI’s Phi-6 model will be available on Cerebras and said it is “the only frontier model” expected to run at 750 tokens per second. Katti described that speed as “probably an order of magnitude faster than anything else that’s out there.”
Executives Say Speed Will Drive AI Usage Feldman said faster AI responses are essential if AI tools are to become embedded in enterprise workflows. He argued that there is no meaningful market for “slow search” or “dial-up internet,” and said the same expectations will apply to AI systems used throughout the workday.
“If you give people fast tools, they use them more often, they enjoy using them, and they use them on harder and more interesting problems,” Feldman said.
Katti said OpenAI is seeing broader use of Codex internally, beyond software engineering. He said Codex has become “the default user interface” at OpenAI, with employees in legal, go-to-market, finance and other functions using it for increasingly complex tasks. He said OpenAI employees even use Codex to interact with browsers because of its computer-use capabilities.
Katti said tasks with measurable outputs are especially well suited for agents, because the systems can iterate toward better results. As an example of how far usage has spread internally, he said OpenAI’s human resources department built an agent for human reorganizations, calling reorgs “very complex topics.”
Productivity, Not Token Counts, Seen as Key Metric The executives also addressed how enterprises should measure AI adoption. Katti said OpenAI is already seeing company-level productivity gains, pointing to the pace of model releases. He said OpenAI is now releasing a new model every month and attributed the faster pace in part to Codex.
“Previously, AI research was human limited, fundamentally,” Katti said. “We are increasingly getting to the point where recursion begins to become real, where AI is going to help, if not do, the AI research itself.”
Feldman cautioned against using token consumption alone as a measure of AI maturity. He said enterprises should instead focus on business metrics and productivity outcomes.
“I don’t think you should count your tokens as a measure of how AI forward you are,” Feldman said. “I think we’re building AIs to do work. You should count the productivity of the work.”
Infrastructure Bottlenecks Remain a Major Focus Katti said rising use of agentic AI is increasing demand across the technology stack, including CPUs, GPUs, networking, storage and memory. He said OpenAI is “hunting for supply wherever we can get it” and also facing the challenge of finding data centers to house the infrastructure.
He said there is no “silver bullet” for resolving those bottlenecks, but that software optimization and efficiency are becoming more important as AI scales.
“We’ve been in this phase in AI where we are going quickly to new products and new models, it’s all been about time to market,” Katti said. “We are now getting to the point where AI is scaling, efficiency becomes important, too.”
Cerebras Announces European Data Center Expansion Feldman said Europe is a key market because of strong demand for advanced AI and more token capacity. He announced that Cerebras is building 200 megawatts of data center capacity in Europe, including sites in Lyon, France, Norway and Finland.
Feldman said the 200 megawatts of capacity would be completed by the end of next year, with some delivered this year. He said much of the capacity is intended to meet OpenAI’s needs and that Cerebras is deploying “billions of dollars of capital” in data center development.
“We anticipate many more big scale deployments and big data centers here,” Feldman said.
The executives also tied the infrastructure build-out to the growing discussion around sovereign AI. Feldman said AI infrastructure is increasingly viewed as a “critical national resource,” while Katti called data centers “the factories of our age” and “intelligence factories.”
Next 12 Months Expected to Bring Faster Change Looking ahead, both executives said they expect the pace of AI development to continue accelerating. Feldman noted that 12 months earlier Cerebras was still private and had “$25 billion less in sales,” adding that the market had advanced faster than expected.
Katti said “12 months is an eternity in AI” and that he could not predict what will happen even over the next three months. Still, he said the “one constant” is likely to be an accelerating pace of change, with model capabilities continuing to improve quickly.
“The bigger question will be how quickly can these capabilities be adopted for the real world, for enterprise usage, for whatever consumer usage,” Katti said.
About Cerebras Systems NASDAQ: CBRSCerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.
In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.
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Flex a Cerebras rozšiřují výrobu superpočítačů CS-3 v Milpitasu, což má do roku 2026 zvýšit kapacitu zhruba sedminásobně. Cílí na rostoucí poptávku po AI infrastruktuře.
New manufacturing lines in Milpitas, California will support an anticipated 7x increase in production of Cerebras CS-3 systems as demand for high-performance AI infrastructure accelerates.
, /PRNewswire/ -- Flex and Cerebras Systems Inc. today announced an expanded manufacturing partnership to scale production of the Cerebras CS-3, one of the world's most advanced AI accelerator systems, at Flex manufacturing facilities in Milpitas, California. As demand for AI infrastructure accelerates, the collaboration reflects a significant expansion of advanced manufacturing capacity in the United States.
The expanded operation is expected to increase CS-3 production capacity by approximately 7x through 2026, supported by new production lines, expanded floor space, advanced test infrastructure, and additional skilled manufacturing talent based in California.
At a time when electronics manufacturing is often associated with overseas supply chains, this partnership demonstrates that some of the world's most sophisticated AI systems are being designed, assembled, integrated, and tested in the heart of Silicon Valley.
"The CS-3 is unlike any computer system ever built, and scaling its production requires an extraordinary manufacturing partner. Flex brings the technical depth, operational rigor, and manufacturing expertise needed to support that scale," said Dhiraj Mallick, COO of Cerebras. "People often think the entire AI manufacturing and packaging supply chain lives overseas, but everyday across the U.S., teams of American engineers and technicians are building state-of-the-art AI systems that power frontier AI workloads around the world."
The CS-3 is built on Cerebras' industry-leading wafer-scale engine architecture, featuring a processor physically larger than any conventional AI chip. The system integrates advanced liquid cooling, high-density power delivery, precision mechanical assembly, and tightly coordinated networking infrastructure into a platform designed for large-scale AI training and inference.
Manufacturing the CS-3 presents challenges rarely encountered in traditional server production. Each system requires specialized handling processes, custom tooling, precision calibration, and extensive system-level validation. Flex engineers worked closely with Cerebras to develop dedicated assembly flows, automated test stations, and new manufacturing methodologies tailored specifically to wafer-scale computing systems.
"The CS-3 does not resemble a conventional server or rack-scale compute platform," said Rob Campbell, President of Communication, Enterprise and Cloud at Flex. "Every stage of the manufacturing process—from mechanical integration to thermal validation and final system qualification—required deep collaboration between our engineering teams. We thank Cerebras for their partnership in demonstrating what American advanced manufacturing can achieve when two highly technical organizations work side by side."
To support the ramp, Flex is expanding dedicated manufacturing operations for Cerebras in Milpitas, with multiple new assembly and integration lines coming online through 2026. The footprint devoted to CS-3 manufacturing is expected to grow substantially this year as production accelerates to meet customer demand from AI model developers, cloud providers, and enterprise customers.
The expansion is also contributing to growth in high-skilled manufacturing roles across the region, including manufacturing, systems integration, quality, supply chain, and testing.
Inside the Milpitas facility, production operations span precision mechanical assembly, high-power electrical integration, liquid cooling installation, optical networking validation, and full-rack system qualification. To support growing demand, the site has expanded into a high-throughput manufacturing environment with parallel integration lines, enhanced burn-in and validation areas, additional automated test infrastructure, and increased warehouse and logistics capacity for critical components and finished systems. Tooling and fixtures will enable multiple CS-3 systems to move through integration and testing simultaneously, which is expected to significantly increase throughput while maintaining the rigorous quality and reliability standards required for large-scale AI deployments.
To learn more, please visit cerebras.ai/flex.
About Flex
Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions. For information about Flex's intent to spin off its Cloud and Power Infrastructure portfolio, visit: https://flex.com/transaction-resources
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) is building the fastest AI infrastructure in the world. Cerebras is a team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types that have come together to make AI blisteringly fast through innovation and invention. Cerebras believes that when AI is fast, it will change the world. Cerebras' flagship technology, the Wafer-Scale Engine 3 (WSE-3) is the world's largest and fastest commercialized AI processor. Fifty-eight times larger than a leading GPU chip, the WSE-3 uses a fraction of the power per unit compute while delivering inference up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-source models. Leading corporations, research institutes, and governments on four continents chose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud.
Contacts
Flex Media & Press
Christie Haber
Senior Director, Commercial Marketing
(602) 245-1057
[email protected]
Flex Investors & Analysts
Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
[email protected]
Cerebras
[email protected]
Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to: the anticipated 7x increase in production of CS-3 systems, multiple new assembly and integration lines coming online through 2026, the expected substantial growth this year in the footprint devoted to CS-3 manufacturing, and the expected significant increase in throughput of CS-3 systems while maintaining quality and reliability. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan", "intend", "target", "aim", "believe", "may", "will", "should", "becoming", "look forward", "could", "can," "can have", "likely" and other words and terms of similar meaning. Forward-looking statements give our current expectations and projections relating to the information in this press release. Neither Cerebras, Flex, nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The forward-looking statements included in this press release relate only to events and information as of the date hereof. Neither Cerebras nor Flex undertakes any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected.
Cerebras CEO Andrew Feldman shares European expansion plans at RAISE Summit in Paris to deliver faster AI inference July 09, 2026 03:00 ET | Source: Cerebras Systems Inc.
PARIS, July 09, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems, makers of the fastest AI infrastructure, today announced a major expansion of its European infrastructure footprint. Cerebras will bring its first European data center capacity online by the end of 2026, with rapid build-out across France and the Nordics. The company plans to expand total capacity to 200 MW by the end of 2027, with a portion of that capacity expected to support OpenAI workloads as part of the companies’ existing partnership. The expansion will bring Cerebras’ high-speed AI inference infrastructure closer to European users, helping deliver faster response times for increasingly complex AI workloads.
"We are contracting significant capacity for 2027, with data centers slated for Norway and Finland as we actively build across Europe," said Feldman. “These deployments will enable us to move decisively on what our customers have been asking for: fast, high-performance AI compute located in Europe."
Frontier compute for Europe
As AI models support increasingly complex and interactive workloads, demand for local, low-latency AI infrastructure has surged across European enterprises, research institutions, and governments seeking alternatives to compute capacity concentrated in the U.S. and Asia. Cerebras' wafer-scale architecture is designed to deliver industry-leading inference and training performance, and the company's European build-out positions it to serve this demand directly from within the region.
"Our customers don't just want AI compute. They want it close to home, powered responsibly, and available fast," added Feldman. "This expansion and capacity plan reflects our confidence in Europe as a long-term growth market for Cerebras."
Cerebras at RAISE Summit
Cerebras co-founder and CEO Andrew Feldman will participate on stage at RAISE Summit in Paris, appearing alongside Sachin Katti of OpenAI on July 9 at 12:40 PM CEST.
A live webcast and replay of the event will be available on Cerebras’ Investor Relations site at https://investors.cerebras.ai/.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) is building the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. They believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Learn more at www.cerebras.ai.
Cerebras uses its investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras’ press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, and are based on current expectations and beliefs of Cerebras’ management, current market trends and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the Securities and Exchange Commission (the “SEC”), including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.
Cerebras v 1. čtvrtletí 2026 zvýšila tržby z cloudových služeb o 167 % na 79,8 milionu USD. Firma ale čelí koncentraci zákazníků, tlaku na marže a přísným dodacím závazkům vůči OpenAI.
Key Takeaways CBRS is pitching wafer-scale AI chips as a faster alternative to conventional GPU-based systems.Cerebras' core cloud and services revenues rose 167% year over year to $79.8 million in Q1 2026.CBRS faces concentration risk, strict OpenAI delivery obligations and near-term margin compression. Cerebras Systems (CBRS - Free Report) has built its investment story around a sharp break from conventional AI chip design. The company’s wafer-scale approach gives investors a clear growth narrative, but also a clear test.
The question is whether Cerebras can turn speed, partner demand and cloud adoption into durable scale without letting delivery obligations, margins and data-center constraints overwhelm the story.
How CBRS Built a Different AI ArchitectureCerebras’ Wafer-Scale Engine (WSE) is designed to reduce a core bottleneck in AI computing: moving data across many smaller chips. By keeping compute and memory on a single wafer, the architecture aims to lower latency and simplify large-model workloads.
The WSE-3 includes roughly 4 trillion transistors, 900,000 AI-optimized cores, 44 gigabytes of on-chip memory, 21 petabytes per second of memory bandwidth and 214 petabits per second of fabric bandwidth. Those specifications support the company’s argument that wafer-scale design can deliver faster training and inference than conventional GPU-based systems.
That matters in a market where NVIDIA (NVDA - Free Report) remains central to GPU-accelerated computing and data-center platforms. Advanced Micro Devices (AMD - Free Report) also competes in high-performance computing, graphics and data-center markets, keeping the AI accelerator landscape highly contested.
NVIDIA is dominating the AI GPU market through its Blackwell, Hopper, DGX/NVL systems that are used for AI training and inference. AMD’s MI300 and MI350 accelerator families are competing with CBRS in hyperscale AI infrastructure and enterprise AI clusters.
In the past month, CBRS shares have dropped 19.2%, underperforming NVIDIA’s fall of 3.8% and AMD’s appreciation of 7.4%.
CBRS Stock Price Performance
Image Source: Zacks Investment Research
Cerebras Turns Hardware Into a PlatformCerebras is not selling only processors. Its portfolio includes CS-3 AI supercomputers, networking infrastructure, cluster management software and cloud-based AI services.
The software layer is central to that platform push. CSoft maps PyTorch models to the WSE without requiring developers to rewrite code, while the Inference Serving Stack and Cluster Manager help customers use multiple CS-3 systems as a single logical computer.
The mix shift is already visible. In the first quarter of 2026, core revenues rose 92% year over year to $191.3 million, with core cloud and services revenues up 167% to $79.8 million. That cloud growth changes the investment debate. The story is increasingly about recurring infrastructure usage and higher platform utilization, not just one-time system sales.
The Zacks Consensus Estimate for 2026 and 2027 revenues is currently pegged at $861.3 million and $2.77 billion, respectively.
Why Expanding Partner Base Matter for CerebrasCBRS’ partnerships with OpenAI and Amazon (AMZN - Free Report) are noteworthy developments.
OpenAI is the biggest validation point for Cerebras’ speed positioning. The company has an agreement for 750 megawatts of high-speed inference compute over the next several years, valued at more than $20 billion. The relationship also gives Cerebras exposure to frontier-model workloads. Management has said the collaboration gives the company direct insight into where advanced model development is moving.
Amazon’s cloud-arm Amazon Web Services (AWS) adds a distribution angle. The partnership is intended to bring Cerebras systems into AWS data centers and combine AWS Trainium 3 for prefill with Cerebras CS-3 for decoding.
For investors, that matters because AWS can place Cerebras closer to enterprises already running workloads inside Amazon’s cloud ecosystem. The opportunity depends on deployment execution, not just partnership headlines.
CBRS Growth Comes With Real ConstraintsCerebras’ growth case carries meaningful concentration risk. Historically, G42 and MBZUAI accounted for most annual revenues, while OpenAI is expected to represent a substantial portion of future revenues.
The OpenAI agreement also comes with strict delivery obligations across multiple data centers. If Cerebras misses deployment milestones, OpenAI can terminate portions of the agreement.
Margins are another pressure point. Cerebras expects near-term gross margin compression as it rents systems and builds the infrastructure needed to serve cloud demand. This is expected to hurt profitability. The consensus mark for 2026 loss is currently pegged at 89 cents per share. However, for 2027, the Zacks Consensus Estimate for earnings is pegged at 96 cents per share.
Data-center availability is a practical constraint as well. Management has described capacity as difficult to secure, even as the company expands across the United States, Canada, Europe and other regions.
ConclusionThe bottom line is balanced. Cerebras offers direct exposure to fast-growing AI infrastructure demand, but the stock’s outlook depends on whether the company can scale capacity, meet major customer obligations and improve profitability over time.
CBRS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pomerantz LLP vyšetřuje možné porušení zákona ze strany společnosti Cerebras Systems a jejího vedení. Akcie CBRS po zveřejnění výsledků za 1. čtvrtletí klesly o 19,61 %.
NEW YORK, July 07, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Cerebras and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around May 14, 2026, Cerebras completed its initial public offering (“IPO”), selling 30 million shares of Class A common stock priced at $185.00 per share. Then, on June 24, 2026, Cerebras reported its financial results for the first quarter of 2026. Among other items, Cerebras reported a loss of $0.22 per share, missing analyst estimates of a $0.16-per-share loss. In addition, Cerebras forecast a narrower gross margin in its core business, excluding impact from customer warrants and data center pass-through revenues.
On this news, Cerebras’s stock price fell $44.46 per share, or 19.61%, to close at $182.26 per share on June 24, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Cerebras po IPO stále obchoduje asi 11 % nad upisovací cenou 185 USD, i když z maxima výrazně ustoupila. Firma hlásí 76% růst hlavních výnosů na 510 milionů USD v roce 2025 a backlog 25 miliard USD.
Cerebras (CBRS 7.31%), a producer of AI chips, went public at $185 per share on May 14. Its stock opened at $350, but it now trades at about $205. That's still 11% above its IPO price, but investors who chased its post-IPO gains are now underwater. Let's see why Cerebras' stock fizzled out -- and if it's worth buying today.
Image source: Getty Images.
What does Cerebras do? Cerebras doesn't produce small GPUs like Nvidia (NVDA 1.39%). Instead, it builds massive AI processors on a single silicon wafer without cutting them into individual chips. Cerebras chips are as big as dinner plates, while Nvidia's GPUs are the size of postage stamps.
Cerebras claims its bigger chips bypass the networking bottlenecks, data latency, and power constraints associated with connecting traditional GPU clusters. They also outperformed traditional GPU clusters in inference tasks (when applications accessed trained data). It generates its revenue by selling its wafer-scale processors and CS-3 systems, as well as providing customers with cloud-based access to its own wafers to run inference tasks.
Cerebras recently secured a multi-year $20 billion deal with OpenAI to deploy 750 megawatts of its wafer-scale inference systems. It's also integrating its CS-3 systems into Amazon (AMZN +0.55%) Web Services (AWS), the world's largest cloud infrastructure platform.
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How fast is Cerebras growing? Cerebras' core revenue (which excludes its "pass-through" revenue for passing the utility, power, and real estate costs paid by its customers to its data center landlords) surged 76% to $510 million in 2025. It expects that figure to rise 68%-70% to $855-$865 million in 2026.
Cerebras also has a backlog of $25 billion, which guarantees that its revenue will keep rising for the foreseeable future. However, its gross margins are shrinking because it's renting back some computing capacity from its own customers as it builds its own data centers. That pressure should ease as it expands its first-party infrastructure, but it will likely remain unprofitable.
With a market cap of $46.4 billion, Cerebras trades at 54 times this year's sales. But it also trades at just six times its projected revenue of $7.32 billion in 2028 -- which would represent a 143% three-year CAGR from 2025. Analysts also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2027 and 2028.
Is Cerebras' stock worth buying? Cerebras' strategy of building plate-sized chips and renting out its processing power sounds wild, but its massive backlog indicates it's on the right track. Its stock will remain volatile in this choppy market, but it's worth accumulating as a long-term play on the booming AI market.
Pomerantz LLP prověřuje možné porušení zákona ze strany Cerebras Systems a jejích představitelů. Akcie CBRS po výsledcích za první čtvrtletí 2026 klesly o 44,46 USD, tedy o 19,61 %, na 182,26 USD.
NEW YORK, June 30, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Cerebras and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around May 14, 2026, Cerebras completed its initial public offering (“IPO”), selling 30 million shares of Class A common stock priced at $185.00 per share. Then, on June 24, 2026, Cerebras reported its financial results for the first quarter of 2026. Among other items, Cerebras reported a loss of $0.22 per share, missing analyst estimates of a $0.16-per-share loss. In addition, Cerebras forecast a narrower gross margin in its core business, excluding impact from customer warrants and data center pass-through revenues.
On this news, Cerebras’s stock price fell $44.46 per share, or 19.61%, to close at $182.26 per share on June 24, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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Cerebras oznámila za 1. čtvrtletí meziroční růst tržeb o 92 % na 191,3 milionu USD, ale investory zklamal výhled tržeb i tlak na marže. Akcie po zveřejnění výsledků klesly o 20 %.
Artificial intelligence (AI) infrastructure provider Cerebras Systems (CBRS +14.67%) went public last month and popped impressively on its first day of trading on May 14.
Cerebras stock popped an impressive 68% on its first day, rising significantly from its initial public offering (IPO) price of $185. However, the stock has lost 41% of its value since that pop. What's more, the company's first-quarter 2026 results, which were released on June 23, failed to arrest the slide due to disappointing revenue guidance and margin concerns.
Analysts, however, remain confident of a turnaround in Cerebras' fortunes. They anticipate a 65% surge in Cerebras stock in the coming year, as evidenced by its 12-month median price target of $300. Notably, 10 of the 11 analysts covering Cerebras rate it as a buy. So, should you capitalize on the recent slide in this AI stock and consider buying it in anticipation of solid long-term gains?
Let's find out.
Image source: The Motley Fool.
Cerebras Systems is reporting solid sales growth, but there is a problem Cerebras differentiates itself from other AI chip companies by packing 4 billion transistors into a single wafer-sized chip. For comparison, companies like Nvidia and Broadcom break down silicon wafers into graphics cards and custom AI processors. Cerebras claims that its wafer-sized chip can eliminate memory-related bottlenecks by packing in a whopping 44 gigabytes (GB) of random-access memory (RAM) and offer significantly faster transmission speeds.
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The company claims that it can offer 28x more computing power compared to Nvidia's B200 graphics processing unit (GPU), while offering 15x faster inference performance as compared to GPU-powered clouds. The good news for Cerebras is that its chips are finding favor among companies such as OpenAI and Amazon.
It has an agreement with OpenAI to deploy 750 megawatts (MW) of its chips to run inference workloads "over the next several years," valued at more than $20 billion. Amazon, meanwhile, has also entered into a multi-year partnership with Cerebras to accelerate inference workloads on Amazon Web Services, though the financial details of the deal haven't been disclosed.
These deals should help Cerebras maintain its impressive growth rate. The company's Q1 revenue increased by 92% year over year to $191.3 million. Cerebras expects an 88% year-over-year increase in revenue in the current quarter to $194 million. The company has guided for a 69% jump in full-year revenue to $860 million, which seems to have disappointed investors.
Analysts would have been satisfied with a 2026 revenue guidance of $824.8 million, but the gradual slowdown in growth the company is indicating over the course of the year hasn't gone down well with investors. Additionally, the company's non-GAAP gross margin forecast for 2026 is another reason why Cerebras stock fell 20% following its earnings report.
Cerebras reported a non-GAAP gross margin of 47% in Q1. However, it expects to report a non-GAAP gross margin of 38% to 41% for the full year. Cerebras attributes this gross margin pressure to its strategy of renting its own chip systems back from an existing customer to fulfill its contractual backlog. Cerebras points out that this margin pressure will be temporary and should ease as it brings its own data center capacity online.
Cerebras CEO Andrew Feldman pointed out on the earnings call that the company is engaged with data center builders in North America, Europe, and the Middle East. As a result, Cerebras is confident of adding new capacity quickly going forward. Once that happens, the company's margins should start getting better. Throw in the massive backlog of more than $20 billion that Cerebras reported last quarter, and it won't be surprising to see the company quickly moving toward profitability. This is what analysts are anticipating.
Data by YCharts
The valuation is a concern, but the stock could jump impressively over the next three years The biggest problem with Cerebras right now is its valuation. The stock trades at 65 times sales, and the gradual slowdown it is forecasting in top-line growth for the rest of the year doesn't justify that multiple. The U.S. tech sector, for comparison, has an average price-to-sales ratio of 9.1.
However, as Cerebras adds more data center capacity using its proprietary chips, it should be able to step on the gas once again. Not surprisingly, analysts are expecting a significant acceleration in its top-line growth in 2027 and 2028.
Data by YCharts
Cerebras can indeed achieve such stunning growth, given its backlog, thereby justifying its premium valuation. Let's say it trades at even 15 times sales after three years and achieves $7.4 billion in revenue in 2028, its market cap could increase to $111 billion. That suggests potential upside of 175% from current levels.
So, investors looking for a growth stock can consider accumulating Cerebras following its sharp pullback in recent weeks, as it can bounce back and deliver healthy gains over the next three years.
