Track market-moving stories before they get noisy

AMD is teaming up with Cerebras on a new server designed to slash response times, taking direct aim at Nvidia and promising some of the fastest AI systems on the market. Cerebras CEO Andrew Feldman explains how the partnership works, why speed is becoming the next battleground in AI infrastructure, and what it means for the rapidly evolving AI chip market.

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.

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.

Contacts

Investor Relations
Sean Dorsey
[email protected]

Media Relations
Kriselle Laran
[email protected]

New York, New York--(Newsfile Corp. - July 17, 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%.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America-the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act-$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

If you have any questions about this investigation, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/cerebras-systems-inc-investigation-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305621

Source: Kaplan Fox & Kilsheimer LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

, /PRNewswire/ -- 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. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The AI data center buildout is minting a second tier of winners that most retail investors still haven’t priced in. While the crowd fights over GPU tickers, the money is quietly flowing into the plumbing: RF, optical, custom silicon, PCIe retimers, wafer-scale compute. Consider that Arm Holdings (NASDAQ:ARM | ARM Price Prediction) alone now sees over $2 billion in customer demand for its AGI CPU across FY27-FY28, with the data center CPU market pegged at more than $100B by 2030. That is one company, one product line. The following five names sit directly on the fuse.

1. MACOM Technology Solutions Start with the name almost nobody puts on their AI list. MACOM Technology Solutions (NASDAQ:MTSI) builds the RF, microwave, analog and optical semiconductors that increasingly show up in hyperscaler switch cages and pluggable optics. As 800G migrates to 1.6T and copper interconnects hit their reach limits inside AI racks, MACOM’s analog and light-wave content per rack goes up, not down. This is the shovel play behind the shovel play.

Fiscal Q2 2026, reported May 7 was the tell. Revenue hit $288.95 million, up 22.5% year over year, adjusted gross margin expanded to 58.5%, and management guided fiscal Q3 to $331M to $339M in revenue with adjusted EPS of $1.31 to $1.37. The Street is catching up: analysts carry a consensus target of $403 with three strong buys and nine buys against zero sells.

The chart tells the rest. Shares are up 76.32% year to date through July 10, yet the stock trades at a forward multiple of 45x, well below the pure-play AI silicon cohort. The heavyweight comes next, and it has already tripled.

2. Marvell Technology Marvell Technology (NASDAQ:MRVL) is the custom silicon partner every hyperscaler wants on speed dial. Its portfolio spans 800G and 1.6T scale-out optics, 51.2T Ethernet switches, NPO and CPO optical solutions, and custom XPU designs, which puts Marvell directly inside the AI cluster. The February acquisitions of Celestial AI (photonic fabric) and XConn Technologies bolted on the exact optical interconnect IP that determines who wins the next generation of scale-up fabrics.

Q1 FY2027, reported May 27 put numbers behind the thesis. Revenue reached $2.418 billion, up 27.6% year over year, with the data center segment contributing $1.83 billion, or 76% of revenue, up 27% year over year. Management guided Q2 to $2.70 billion. On the call, CEO Matt Murphy told investors, “We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028”.

The stock is up 163.80% year to date and 221.44% over the past year. Yet with 31 Buy ratings and seven Strong Buy ratings against a consensus target of $252.26, sell-side conviction remains intact. The next name doesn’t build chips at all. It taxes them.

3. Arm Holdings Every custom AI CPU shipping in volume in 2026 runs on Arm Holdings IP. NVIDIA Vera, Google Axion, Microsoft Cobalt: all Arm-based. Arm collects a license upfront, then a royalty on every unit shipped, forever. That is the toll-booth model, and the toll booth is now sitting on the fastest-growing road in tech.

Q4 FY2026, reported May 6 delivered revenue of $1.49 billion, up 20.1% year over year, with licensing revenue of $819 million, up 29% and data center royalty more than doubling year over year. CEO Rene Haas framed the setup bluntly: “As AI becomes more agentic, demand for Arm AGI CPU, Arm’s first data center chip, has exceeded expectations, reinforcing Arm as the compute platform for the AI era.” Meta is the lead partner.

July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.

Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.

With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.

Shares are up 181.87% year to date. Valuation is stretched at 137x forward earnings, but the analyst pool holds seven Strong Buy ratings and 20 Buy ratings. Retail is here too: Reddit sentiment on r/wallstreetbets rebounded to a bullish 74 by June 27 after a brief regret-post-driven dip. The next stock is the one connecting all of these chips inside the rack.

4. Astera Labs Astera Labs (NASDAQ:ALAB) makes the retimers, smart cable modules, and fabric switches that keep PCIe 6 and CXL links alive inside AI servers. When rack density climbs and every XPU wants to talk to every other XPU at line rate, Astera’s silicon is what makes it possible. In May, the company launched the Scorpio X-Series 320-lane Smart Fabric Switch targeting a $20B merchant scale-up market by 2030. That is not a niche.

Q1 2026 was a statement quarter. Revenue reached $308.36 million, up 93.4% year over year and 14% sequentially, non-GAAP EPS came in at $0.61 versus $0.54 expected, and operating income jumped to $61.8M, up 447.9% year over year. Management guided Q2 to $355 million to $365 million. Astera has beaten consensus in every one of its ten reported quarters, with surprise percentages that show sell-side models can’t keep up.

Shares are up 129.99% year to date and 325.65% over the past year, with a 24.82% pop in the last month alone. The last name on this list builds the entire AI system itself.

5. Cerebras Systems And here it is: the payoff. Cerebras Systems (NASDAQ:CBRS) went public in Q2 2026, raising $6.4 billion, backed into the AWS ecosystem with a partnership pairing Trainium 3 with the Cerebras CS-3, and then locked in a multi-year OpenAI deal for 750MW of inference compute valued at more than $20B. OpenAI also extended Cerebras a $1B working capital loan in January 2026. Wafer-scale has graduated into the AI inference backbone OpenAI chose. Q1 2026 revenue printed at $193.4M, up 94% year over year, with Cloud and Other Services up 178% to $82.8M. The full-year 2026 guide sits at $855M to $865M, roughly 69% growth at the midpoint. CEO Andrew Feldman put it plainly: “Cerebras’ wafer-scale technology delivers the fastest AI in the world… This is the Cerebras mission.”

The setup is asymmetric. Shares have already pulled back 30.86% since the May 14 IPO peak as retail digested guidance that forecast shrinking margins, with the Reddit sentiment score cratering to 35 on IPO day. Analysts see a target of $291.09, well above the current price. When the largest AI lab in the world writes you a $20 billion contract and a $1 billion loan, gross margin compression in year one is a footnote, not a thesis.

The Bottom Line The AI datacenter trade has moved past the GPU. It now runs through RF and optical content, custom XPU silicon, licensed CPU cores, PCIe fabrics and wafer-scale inference clusters. Every one of these five names is already accelerating revenue, and four of the five have outperformed the market year to date. The window on the “under the radar” framing is closing quickly as sell-side targets catch up to shipment reality. Keep an eye on the group into the next earnings cycle.

Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.

Over 50,000 people already have, along with global giants like General Motors and POSCO.

Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.

Contact [email protected] for any questions or corrections.

Cerebras pairs 92% core revenue growth and ample liquidity with customer concentration, margin pressure and capacity-delivery risks.

Key Takeaways Cerebras is positioned for faster AI inference as demand shifts toward lower-latency token generation.Its OpenAI deal covers 750 megawatts of inference capacity and is valued above $20 billion.Cloud and services revenue surged 167%, though capacity, concentration and infrastructure risks remain. Cerebras Systems (CBRS - Free Report) is tied to a clear change in AI infrastructure: the move from training-heavy demand toward faster, lower-latency inference.

That shift has made speed a commercial feature. For Cerebras, the question is whether demand for fast tokens can scale without stretching capacity, supply chains or margins too far.

Why Cerebras is Levered to Inference DemandCerebras’ wafer-scale architecture is built to reduce chip-to-chip communication, a major bottleneck in conventional accelerator clusters. Its WSE-3 processor powers CS-3 systems designed for training and inference through an integrated hardware and software stack.

The company is aligned with interactive AI use cases where response time matters. Coding tools, agents and customer-facing applications depend on fast token generation, not just model size.OpenAI is the biggest proof point. The companies’ agreement covers 750 megawatts of committed inference compute capacity and is valued at more than $20 billion over several years.

However, Cerebras is facing stiff competition in the AI infrastructure market from the likes of NVIDIA (NVDA - Free Report)  and Advanced Micro Devices (AMD - Free Report) . 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. .

CBRS Benefits From Cloud and Marketplace ReachCerebras is no longer relying only on large direct enterprise deployments. Its go-to-market approach now includes cloud providers, software platforms, marketplaces and self-service developer access. CBRS’ 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. Cerebras and AWS plan a disaggregated inference approach in which AWS Trainium 3 handles prefill and Cerebras CS-3 handles decode.

Marketplace and developer channels broaden the funnel. Cerebras solutions are available through AWS Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway, OpenRouter and Hugging Face. Those channels can help CBRS reach startups, AI-native companies and enterprises that already build inside existing cloud workflows. Self-service inference APIs may also turn early experimentation into larger deployments.

Cerebras is Seeing a Mix Shift to ServicesThe business model is moving in the same direction as the product story. In the first quarter of 2026, core revenues rose 92% year over year to $191.3 million. Core hardware revenues increased 60% to $111.6 million. Core cloud and services revenues climbed 167% to $79.8 million, suggesting faster growth in more services.

A larger services mix could improve visibility over time because customers can consume inference by token, reserve dedicated capacity or use cloud access for production workloads.

The transition is still early. Hardware remains the larger core revenue contributor, and cloud infrastructure requires capital, leases and operating discipline before recurring demand can fully show through.

What Could Slow the CBRS Trend StoryThe main risk is execution. Cerebras has major demand signals, but it must turn those commitments into delivered capacity across data centers, systems and service levels. The OpenAI agreement raises the stakes. Failure to meet deployment milestones or service requirements could affect portions of the arrangement, and the related working capital loan adds financial risk under certain termination scenarios.

Customer concentration is another concern. A small group of large customers, including OpenAI, AWS, G42 and MBZUAI, is expected to carry a meaningful share of the growth story.

Infrastructure intensity also limits flexibility. Data center availability is a key growth constraint, while manufacturing scale, power access, lease commitments and deployment timing all have to align with demand forecasts.

ConclusionThe bottom line is that CBRS offers direct exposure to faster AI inference, but the stock still carries a prove-it profile. The demand backdrop is attractive, yet capacity delivery and economics remain central to the debate.

Cerebras currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.

Get Cerebras Systems alerts:

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.

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].

Should You Invest $1,000 in Cerebras Systems Right Now?Before you consider Cerebras Systems, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cerebras Systems wasn't on the list.

While Cerebras Systems currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

Get This Free Report

Cerebras Systems CBRS shares rose 11% on Thursday after the artificial intelligence infrastructure company unveiled plans for a major expansion across Europe.

The initiative includes new AI data centres that will partially support OpenAI workloads under the companies' existing partnership.

The company said it expects to bring its first European data centre capacity online by the end of this year before expanding its footprint across France, Finland and Norway.

Cerebras said it plans to build out a large artificial intelligence data centre network in Europe, marking its first entry into the region as demand grows for locally hosted AI infrastructure.

The company expects to expand total capacity to 200 megawatts by the end of 2027.

A portion of that capacity is expected to support OpenAI workloads through the companies' existing partnership.

Cerebras said the investment is intended to address increasing demand from European enterprises, research institutions and governments seeking low-latency AI infrastructure within the region rather than relying on providers in the United States or Asia.

Power capacity has become a key measure of AI data centres because electricity availability is increasingly the primary constraint on expanding AI computing.

While smaller enterprise data centres typically consume between 1 and 20 megawatts, hyperscale facilities operated by cloud providers can require 100 megawatts or more.

Chief executive Andrew Feldman said the projects represent a significant investment.

"These are massive expansions" worth several billion dollars, Feldman told AFP on the sidelines of the RAISE Summit in Paris.

He also said, "By putting data centres across Europe... we think that we can meet all the unique European requirements" on issues such as data sovereignty.

Alongside its European expansion, Cerebras announced an expanded manufacturing partnership with Flex to increase production of its CS-3 AI accelerator systems.

Production will be scaled at Flex's facilities in Milpitas, California, with the expanded operation expected to increase CS-3 manufacturing capacity by approximately seven times through 2026.

The expansion will be supported by additional production lines, increased manufacturing space and more skilled workers.

"The CS-3 is unlike any computer system ever built, and scaling its production requires an extraordinary manufacturing partner," said Chief Operating Officer Dhiraj Mallick.

The company said the manufacturing expansion is designed to support rising demand for AI inference infrastructure.

Cerebras has focused on processors designed specifically for AI inference, the process through which AI models generate responses to user prompts.

Demand for inference-focused chips has accelerated alongside the growing adoption of AI agents, which require significantly more computing resources.

Feldman said demand across Europe continues to outpace supply.

"These deployments will enable us to move decisively on what our customers have been asking for: fast, high-performance AI compute located in Europe," he said in the company's statement.

He also told AFP that demand for generative AI computing in Europe is "extraordinary... growing very, very quickly," adding that the market is expanding "faster than we can keep up".

The expansion comes as AI infrastructure investment accelerates across Europe.

The AI infrastructure boom also helped Cerebras raise $5.5 billion in its US initial public offering in May, making it one of the 15 largest IPOs in Wall Street history.

According to TipRanks data, all 10 analysts covering the company currently rate the stock a Buy, with an average price target of $296, implying roughly 46% upside from current levels.

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.

Corporate Communications
Kriselle Laran
[email protected]

Investor Relations
Sean Dorsey
[email protected]

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 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.

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.

CBRS faces pressure from margin declines and execution risks, even as AI demand, cloud growth and OpenAI and AWS partnerships support prospects.

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS) investors concerning the Company’s possible violations of the federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON CEREBRAS SYSTEMS INC. (CBRS), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

What Happened?

On May 14, 2026, Cerebras conducted its initial public offering (“IPO”), selling 30 million shares of common stock at $185.00 per share.

On June 24, 2026, Cerebras released its first quarter 2026 financial results, missing estimates, and disclosing that “[f]or the rest of 2026, in order to accelerate [the Company’s] ability to service the significant near-term demand in [its] contracted backlog, [it has] chosen to make more capacity available sooner by temporarily renting [its] own systems back from an existing customer while [it] aggressively build[s] out and deploy[s] [its] own data center capacity.” Further, the Company revealed that “[t]he additional cost of renting third-party capacity will depress core Cloud and other services margin temporarily from current levels.”

On this news, Cerebra’s stock price fell $44.46, or 19.6%, to close at $182.26 per share on June 24, 2026, thereby injuring investors.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.

Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

Whistleblower Notice

Persons with non-public information regarding Cerebras should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

About Glancy Prongay Wolke & Rotter LLP

GPWR is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Recognizing the firm’s recent successes, GPWR was named one of Law360’s Securities Groups of the Year and ranked second-highest in total investor recoveries by Institutional Shareholder Services Securities Class Action Services in 2025. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money. Prior results do not guarantee a similar outcome.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS) investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN CEREBRAS SYSTEMS INC. (CBRS), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.Contact the Law Offices of Howard G. Smith to discuss your legal rights by.

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.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

After plunging more than 29% last week, Cerebras (CBRS +19.04%) stock is off to a bullish start this week. The semiconductor specialist that designs chips for artificial intelligence (AI) applications had no news to report. Yet, investors are taking note of a well-known growth investor's recent purchase of Cerebras stock.

As of 3:14 p.m. ET, shares of Cerebras are up 18.6%.

Image source: Getty Images.

Cathie Wood sees the sell-off as a buying opportunity On Friday, Ark Invest -- led by Cathie Wood -- reported that two of its exchange-traded funds acquired shares of Cerebras during the day's trading session.

Today's Change

(

19.04

%) $

34.57

Current Price

$

216.16

The Ark Innovation ETF picked up 16,352 shares, while the Ark Next Generation Internet ETF bought 4,130 shares.

Friday's buying activity complements Ark Invest's purchases from the middle of the week. Last Wednesday, The Ark Innovation and the Ark Next Generation Internet ETF bought 79,174 and 19,980 shares, respectively.

As of Monday afternoon, Cerebras has a 1.5% weighting in the Ark Innovation ETF and a 1.6% weighting in the Ark Next Generation Internet ETF.

Cerebras stock isn't for the faint of heart Although some investors are drawn to stocks that have recently completed initial public offerings, others keep their distance for exactly the reason we're seeing today: the significant swings IPO stocks often experience.

While Cathie Wood's endorsement of Cerebras stock is notable, investors must remember the risk in blindly following other investors' buying and selling activity. For investors who are interested in Cerebras stock but averse to volatility, an AI exchange-traded fund (ETF) that includes Cerebras among its holdings is a better option right now.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

56.19K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

[url="]The Schall Law Firm[/url], a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Cerebras S

Boston, Massachusetts--(Newsfile Corp. - June 26, 2026) - Block & Leviton is investigating Cerebras Systems Inc. (NASDAQ: CBRS) for potential securities law violations. Investors who have lost money in their Cerebras Systems investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/cbrs.

What is this all about?

Block & Leviton is investigating whether Cerebras Systems and certain of its officers and directors violated federal securities laws. Cerebras completed its initial public offering on May 14, selling 30 million shares of Class A common stock at $185.00 per share. On June 23, 2026, the company reported its first-quarter 2026 financial results, posting a loss of $0.22 per share, causing the company's stock price to fall over $40 per share. Investors who purchased Cerebras shares and have lost money are encouraged to contact the firm to learn more about their rights.

Who is eligible?

Anyone who purchased Cerebras Systems common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.

What is Block & Leviton doing?

Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.

What should you do next?

If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.

Whistleblower?

If you have non-public information about Cerebras Systems, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.

Why should you contact Block & Leviton?

Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.

This notice may constitute attorney advertising.

CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303012

Source: Block & Leviton LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

, /PRNewswire/ -- 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. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

In a world where bigger is better, Cerebras Systems NASDAQ: CBRS seems to be well positioned. Instead of linking numerous AI cores together, creating data transfer bottlenecks along the way, Cerebras Systems chips are massive, comparable to dinner plates, housing thousands of cores in each.

The advantage to this approach is simple: speed. Housing AI cores on a single chip enables lightning-fast speeds unparalleled by traditional GPU technology. The disadvantage is memory capacity: NVIDIA’s NASDAQ: NVDA Vera Rubin natively supports far more memory, making it a superior choice for training and advanced applications.

Get Cerebras Systems alerts:

Meanwhile, speed makes Cerebras Systems' AI technology well-suited to real-time inference, the far larger market.

Cerebras Set to Dominate in the AI Inference MarketCurrently estimated at approximately $125 billion as of mid-2026, the inference market is expected to proliferate at a solid double-digit compound annual growth rate for at least the next four to five years, doubling in that time. While GPUs are the basis for inference, hardware demand is expanding to include more specialized equipment better suited to the task.

Cerebras's other advantages include the far simpler programming required compared to multi-GPU setups, a smaller footprint, as one Cerebras chip can replace dozens of servers, and lower operating costs. For comparable computing power, the chips deliver industry-leading speeds, often double to triple the token-generation throughput of traditional GPU setups, depending on the model.

CBRS Pulls Back to IPO Lows With Catalysts in PlayCerebras Systems has several catalysts in play, including a growing number of business deals, supply chain insulation, and new product launches. Deals such as those with OpenAI and Amazon’s NASDAQ: AMZN Amazon Web Services are generating revenue now and are expected to ramp in upcoming quarters.

OpenAI is currently porting GPT 5.4 and GPT 5.5 to the Cerebras infrastructure and plans to deploy 750 megawatts of its own capacity soon.

The deal with AWS promises to generate a rapidly growing revenue stream through a disaggregated inference setup: AWS's Trainium chips handle the prefill stage—processing the input—while Cerebras's CS-3 systems run the high-speed decode stage that generates the output tokens.

Other catalysts for Cerebras include manufacturing and construction, which do not require high-bandwidth memory (HBM), insulating the firm from industry bottlenecks. The impact is that Cerebras can ramp production of its chips while others are forced to wait on memory modules, putting it in a position to gain market share quickly.

Hurdles Drive Volatility for CBRS ShareholdersHowever, as robust as the outlook may be, the company has hurdles and headwinds to overcome. Among them are customer concentration, which relies on a limited number of hyperscalers, including the United Arab Emirates-backed G42 Holdings, Ltd. It exposes the company to government scrutiny and export controls. Meanwhile, the intense increase in inference demand forced the company to lease back previously committed capacity, temporarily impairing its margins.

The more pressing concern is competition. In-house chips seek to achieve much of what Cerebras Technology is doing, and there is the memory shortfall to account for. While Cerebras chips are super fast, they have limited on-chip memory, which affects their usefulness in some applications.

While the systems are great at producing output, they struggle with input and need front-end assistance with massive prompts (such as enterprise-quality requests based on potentially endless datasets). The deal with Amazon is an example, as Cerebras systems need the Trainium infrastructure to sort and organize the data into digestible bites it can use to generate super-fast responses.

The company’s plan is to increase its memory capacity over time by shrinking the size of the SRAM modules within each chip. The company has done so successfully across several generations and is on track to do so again with its upcoming technology. The caveat is that there is a physical limit to how much can be placed on a single wafer because nodes can only get so small.

Optimistic Analysts Highlight Value Opportunity in CBRS StockCerebras Systems Stock Forecast Today12-Month Stock Price Forecast:
$299.30
78.55% Upside

Buy
Based on 11 Analyst Ratings

Current Price$167.63High Forecast$340.00Average Forecast$299.30Low Forecast$273.00Cerebras Systems Stock Forecast Details

The initial analyst outlook for Cerebras is bullish. The first 11 reports to show up on MarketBeat’s tracking page since the IPO include 10 Buy ratings for a 92% Buy-side bias. The group sees the stock as fairly valued near its IPO level, approximately 60% above the late-June price action. The risk is that price action will continue selling off, as is often the case with IPO stocks, but the analysts' chatter suggests otherwise. They view company guidance as conservative, expecting strengths to emerge as the year progresses.

Among the strengths are the potential for accelerated gross margin expansion. The combination of capacity ramping and rising compute costs creates a dual lever for growth. In this scenario, CBRS will likely outperform its guidance in the upcoming quarters and improve its profitability outlook.

As it stands, profits are expected by next year, and profitability is expected to improve aggressively over the subsequent three to five years.

Should You Invest $1,000 in Cerebras Systems Right Now?Before you consider Cerebras Systems, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cerebras Systems wasn't on the list.

While Cerebras Systems currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

Cerebras Systems Inc. (CBRS) Q1 2026 Earnings Call Transcript

Cerebras Systems CBRS shares tanked over 15% on Wednesday morning following its inaugural quarterly earnings report since its blockbuster initial public offering (IPO) last month.

While the artificial intelligence (AI) chipmaker nearly doubled its Q1 revenue to $193 million and topped Street estimates, investors are concerned about the compressed profitability guidance.

Cerebras expects its core gross margin to fall between 36% and 38% in the current quarter, which would represent a sharp decline from 47% in its fiscal Q1.

However, speaking with CNBC, Cerebras co-founder and CEO Andrew Feldman forcefully pushed back against the negative reaction, arguing the updated margin outlook is heavily “misunderstood”.

At the time of writing, Cerebras stock is down nearly 40% versus its year-to-date high.

Feldman clarified that the projected sequential decline in gross margin reflects an infrastructure bottleneck rather than a flaw in product pricing or core demand.

To satisfy an unprecedented rush of orders, the company is temporarily leasing back high-performance systems from its largest buyers while fresh data center infrastructure is constructed.

“Everybody wants more tokens,” he told CNBC, explaining that Cerebras Systems Inc chose to maximize customer satisfaction over short-term numbers.

“We had a choice and we could pass on the demand or we could keep our customers delighted... by renting some of our own gear back and taking a slightly lower margin.”

Crucially, CBRS shares may be attractive to buy on the post-earnings dip today because full-year core gross margin expectations were actually raised by 10 points versus the pre-IPO roadmap.

The sharp sell-off in Cerebras shares today may be exacerbated due to structural equity dynamics, specifically an unconventional lockup expiration framework.

Unlike traditional IPOs that restrict early investors from selling until a single 180-day cliff passes, CBRS opted for a phased approach designed to mitigate sudden market flooding.

Feldman said the company chose to “titrate out” its lockup restrictions – allowing partial tranches to unlock immediately on day one, followed by additional allocations directly after the first and second earnings calls.

This structured release may have triggered a wave of localized selling volume on Jun 24 as insiders liquidated early positions, creating intense downward pressure despite the underlying operational beat.

Despite immediate market friction, CBRS stock remains attractive because the firm's commercial trajectory is remarkably robust, anchored by a multi-year backlog exceeding $24 billion.

The chipmaker has fully finalized its massive master reseller agreement with OpenAI, a staggering contract worth "north of $20 billion" to deploy 750 megawatts of specialized inference capacity.

Moreover, the company recently finalized its definitive collaboration agreement with Amazon Web Services (AWS), a partnership designed to put its blazing-fast hardware directly in front of global enterprises.

As the data center shortage eases throughout the back half of 2026 and these mega-contracts begin to filter into official consensus forecasts next year, Feldman remains confident that Cerebras’s hardware advantages will ultimately eclipse near-term infrastructure bottlenecks.

Cerebras Systems (NASDAQ:CBRS) shares fell 14% to about $194 on Tuesday after the artificial intelligence chipmaker reported better-than-expected first quarter results and raised its full-year revenue outlook, but forecast a sharp decline in gross margins for the current quarter.

The company, which completed its initial public offering earlier this year, reported first-quarter GAAP revenue of $193.4 million and core revenue of $191.3 million, exceeding Wall Street expectations of about $181 million. Core revenue increased 92% from a year earlier.

Cerebras posted a non-GAAP net loss of $0.04 per share, narrower than analysts' expectations for a loss of $0.16 per share.

For the second quarter, Cerebras projected revenue of approximately $194 million, ahead of analysts' estimates of $174.3 million. The company also raised its full-year 2026 revenue forecast to a range of $855 million to $865 million, compared with consensus expectations of about $828 million.

However, investors focused on the company's profitability outlook. Cerebras said second-quarter gross margin is expected to fall to between 36% and 38%, down from 47% in the first quarter and a GAAP gross margin of 45% reported for the period.

During the quarter, Cerebras announced a multi-year agreement with OpenAI valued at more than $20 billion, under which OpenAI plans to deploy 750 megawatts of the company's inference computing capacity over several years. Cerebras also launched a partnership with Amazon Web Services aimed at bringing its inference technology to AWS customers through a disaggregated inference strategy.

Andrew Feldman, Cerebras CEO, said demand for faster AI infrastructure is growing as artificial intelligence applications become more widely adopted. “The growing importance of AI in our economy requires AI infrastructure that can power the most advanced applications at unprecedented speed. This is the Cerebras mission,” Feldman said.

Wedbush analysts maintained an ‘Outperform’ rating on Cerebras and raised their price target to $280 from $270 following the results. The analysts wrote that the company's inaugural earnings report contained "no particular surprises" and validated their expectation that management would provide achievable guidance.

Wedbush noted that hardware sales exceeded its expectations and that stronger pricing for Cerebras' cloud services reflected robust demand. While gross margins are expected to decline as OpenAI-related revenue ramps, the analysts wrote that the drop appears less severe than they had previously modeled, potentially creating upside through 2026.

The firm also pointed to higher operating expenses, which it believes are likely tied to additional research and development spending and could support future product launches and customer programs.

Wedbush wrote that it remains constructive on Cerebras, citing potential catalysts including new products such as the WSE-4 processor, additional data center capacity and sustained demand for AI infrastructure.