Track market-moving stories before they get noisy

Astera Labs is rated a Strong Buy, driven by its emergence as the neutral connectivity layer in AI infrastructure, not just a retimer supplier. ALAB's Q1 2026 revenue surged 93% year-over-year to $308.4M, with 76.3% GAAP gross margin and robust Q2 guidance indicating accelerating growth. Scorpio X-series Fabric Switch positions ALAB at the heart of AI rack-scale architectures, enabling deeper integration and higher revenue per AI platform.

Key Takeaways ALAB posted Q1 revenues of $308.4M, up 14% sequentially and 93% year over year. Astera Labs' PCIe Gen 6 revenues topped one-third of Q1 sales, driven by Aries adoption. ALAB expects Q2 revenues of $355M-$365M, implying 15% to 18% sequential growth. Astera Labs (ALAB - Free Report) is benefiting from robust demand for its Aries and Taurus product lines, which are central to the company’s strong performance in the AI infrastructure market. In the first quarter of 2026, Astera Labs reported revenues of $308.4 million, marking a 14% sequential increase and an impressive 93% year-over-year growth.

This surge was driven by broad-based adoption across the company’s signal conditioning and fabric switch portfolios, with Aries and Taurus playing pivotal roles in supporting both scale-up and scale-out connectivity for AI infrastructure and general-purpose compute platforms.

The Aries product line, focused on PCIe 6 signal conditioning, has seen strong early adoption, particularly as AI infrastructure spending accelerates. Aries solutions are now integral to both AI fabric and signal conditioning, with PCIe Gen 6 revenues contributing more than one-third of ALAB’s total revenues in the first quarter of 2026. The company has shipped millions of PCIe Gen 6 ports to date, demonstrating the maturity and robustness of its portfolio. Aries is set to expand into PCIe 7, positioning ALAB’s leadership in intelligent connectivity solutions for AI infrastructure.

Taurus, meanwhile, has delivered solid results through the broad adoption of its Active Electrical Cable technology, which extends connectivity reach in both AI and general compute environments. The Taurus portfolio is also poised for further expansion into 1.6T Ethernet, aligning with industry trends toward higher-speed networking.

Aster Labs is benefiting from strong demand for its Aries, Taurus, and Scorpio product families, all of which are expected to drive growth in the second quarter of 2026. For the same quarter, ALAB expects revenues between $355 million and $365 million, implying 15% to 18% sequential growth.

ALAB Faces Stiff CompetitionALAB is facing stiff competition from other industry players like Marvell Technology (MRVL - Free Report) and Credo Technology (CRDO - Free Report) . Both Marvell Technology and Credo Technology are making strong efforts in the connectivity space.

Marvell Technology’s expanding portfolio has been noteworthy. Marvell Technology recently introduced the Teralynx T100, a 102.4 Tbps AI-optimized switch silicon designed to enhance high-speed connectivity and networking efficiency in large-scale AI data centers through lower latency and reduced power consumption.

Credo Technology’s expanding portfolio has been noteworthy. In May 2026, Credo Technology completed its acquisition of DustPhotonics, adding industry-leading silicon photonics technology to strengthen its optical interconnect portfolio across 800G, 1.6T and 3.2T solutions. The acquisition enhances Credo Technology’s vertically integrated AI connectivity stack and is expected to be a significant growth driver in fiscal 2027, supported by increasing hyperscale AI adoption.

ALAB’s Share Price Performance, Valuation, and EstimatesALAB shares have surged 150.7% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 20%. The Zacks Internet - Software industry has decreased 13.7% in the same time frame.

ALAB Stock’s Performance
Image Source: Zacks Investment Research

ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 39.34X compared with the  Internet - Software industry’s 3.61X. ALAB has a Value Score of F.

ALAB’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at 69 cents per share, which has been unchanged over the past 30 days. This suggests 56.82% year-over-year growth.

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

June 23, 2026 16:01 ET  | Source: Willis Lease Finance Corp.

COCONUT CREEK, Fla., June 23, 2026 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (the “Company” or “WLFC”), the leading lessor of commercial aircraft engines and a global provider of aviation services, announced today that its shareholders approved a three-for-one forward stock split of the Company’s common stock and a proportionate increase in the number of authorized shares of common stock to accommodate the stock split. The split was also approved by the Company’s Board of Directors and will be effected through an amendment to the Company’s certificate of incorporation (the “Amendment”).

“We are pleased that the 3-to-1 stock split proposal has passed with overwhelming shareholder support, as we believe this action is in the best interests of the Company and our shareholders," said Charles F. Willis, Executive Chairman of WLFC. "Including the stock split, all five proposals on our 2026 proxy were passed by shareholders. Over the past several years, we have built meaningful momentum across the business, further positioning the Company to capitalize on growth opportunities and create value for shareholders.”

Each shareholder of record as of the close of trading on July 6, 2026 (the “Record Date”) will receive, upon effectiveness of the Amendment, two additional shares for every one share held on the record date. Subject to final approval by Nasdaq, trading is expected to begin on a split-adjusted basis at market open on July 20, 2026.

Willis Lease Finance Corporation

Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines and aircraft to airlines, aircraft engine manufacturers and maintenance, repair, and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools, and asset management services through Willis Mitsui & Co. Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions, or circumstances on which the forward-looking statement is based, except as required by law.

The Company’s actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and the Company’s ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; the Company’s ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to the Company and its customers; the Company’s ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in the Company’s portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

CONTACT:Scott B. Flaherty Executive Vice President & Chief Financial Officer (561) 413-0112

Starwood Property Trust (STWD) offers an 11.5% yield and trades below book value, creating a compelling income opportunity. STWD's diversified portfolio, limited office exposure, and recent net lease acquisition support distributable earnings and risk mitigation. Dividend coverage concerns are mitigated by management's clear path to improved earnings, asset resolutions, and capital deployment ramp.

June 22, 2026 16:05 ET  | Source: Centessa Pharmaceuticals plc

BOSTON and LONDON, June 22, 2026 (GLOBE NEWSWIRE) -- Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage company developing a new class of medicines for the treatment of excessive daytime sleepiness and other neurological conditions, which entered into a definitive agreement on March 31, 2026 relating to its proposed acquisition by Eli Lilly and Company (“Lilly”), through a wholly owned subsidiary, today announced that the High Court of Justice of England and Wales has approved the proposal for Lilly to acquire Centessa for $38.00 in cash per share plus one non-transferable contingent value right (“CVR”) that entitles the holder to receive up to an aggregate of $9.00 subject to the achievement of three milestones, for a total transaction value of approximately $7.8 billion (the “Transaction”).

The Transaction is being implemented by way of a Court-sanctioned scheme of arrangement under English law (the “Scheme”).

Centessa is pleased to announce that the Court has today issued the Court Order sanctioning the Scheme.

Closing of the Transaction will occur and the Scheme will become effective upon the Court Order being delivered to the Registrar of Companies, which is expected to occur on June 24, 2026. The last day of trading of Centessa American Depositary Shares (“ADSs”) on Nasdaq is expected to be tomorrow, June 23, 2026, with trading in Centessa ADSs on Nasdaq being halted before the opening of trading on June 24, 2026.

Unless otherwise defined, terms used in this press release have the same meanings as set out in the definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the “SEC”) by Centessa on May 7, 2026.

About Centessa Pharmaceuticals
Centessa Pharmaceuticals plc is a clinical-stage pharmaceutical company with a mission to discover, develop and ultimately deliver medicines that are transformational for patients. We are pioneering a new class of potential therapies within our orexin receptor 2 (OX2R) agonist program for the treatment of excessive daytime sleepiness, impaired attention, cognitive deficits and fatigue across neurological, neurodegenerative and neuropsychiatric disorders.

UK Takeover Code Does Not Apply
Centessa is not a company subject to regulation under the United Kingdom City Code on Takeovers and Mergers (the "UK Takeover Code"), therefore no dealing disclosures are required to be made under Rule 8 of the UK Takeover Code by shareholders of Centessa or Lilly.

Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to the Transaction. Such forward-looking statements include, but are not limited to, statements regarding: the Transaction; potential contingent consideration amounts; the parties' ability to satisfy the conditions to the consummation of the Transaction, including in connection with the expected timetable for the Transaction; and the anticipated occurrence, manner and timing of the closing of the Transaction. All statements other than statements of historical facts are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements are based on current beliefs and expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in, or implied by, such forward-looking statements.

These risks and uncertainties include, but are not limited to: a condition to closing of the Transaction may not be satisfied (or waived); the ability of each party to consummate the Transaction; the closing of the Transaction might be delayed or not occur at all; the diversion of management time and attention from ongoing business operations and opportunities; the response of competitors to the Transaction; the effect of the Transaction on Centessa's operations and its relationships with its suppliers, business partners, management and employees, including its ability to attract and retain key personnel; the outcome of any legal proceedings that could be instituted against the parties to the Transaction; the risks inherent in drug research, development and commercialization; disruption in Centessa's plans and operations attributable to the Transaction; changes in Centessa's business during the period between announcement and closing of the Transaction; the effects of the Transaction on Centessa's share price; the risks related to non-achievement of any milestone and that holders of the CVRs will not receive any payments in respect of the CVRs; relationships with key third parties or governmental entities; regulatory changes and developments; and the impact of global macroeconomic conditions, including trade and other global disputes and interruptions, including related to tariffs, trade protection measures, and similar restrictions. For further discussion of these and other risks and uncertainties, see the “Risk Factors” section of Centessa’s Quarterly Report on Form 10-Q filed with the SEC on May 5, 2026, as well as discussions of potential risks, uncertainties and other important factors, in Centessa’s most recent filings with the SEC and in other filings that Centessa makes with the SEC in the future. There can be no assurance that the Transaction will be consummated in the anticipated timeframe or at all, that any event, change or other circumstance that could give rise to the termination of the definitive agreement for the Transaction will not occur, or that any product candidates will be approved on anticipated timelines or at all. All forward-looking statements in this press release are based on information available to Centessa as of the date of this press release. Centessa expressly disclaims any obligation to publicly update or revise the forward-looking statements, except as required by law.

Contact:
Kristen Sheppard, Esq.
Senior Vice President, Investor Relations & Corporate Communications
[email protected]
www.centessa.com
Follow Centessa Pharmaceuticals on LinkedIn

, /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that it is planning to commence, subject to market and other conditions, a private offering (the "Notes Offering") of US$750 million in aggregate principal amount of senior notes due 2031 (the "Notes"). The Notes will be issued by a U.S. wholly owned subsidiary of GFL and will be guaranteed by GFL and certain of its other subsidiaries.

GFL intends to use the proceeds from the Notes Offering to repay amounts drawn on its revolving credit facility and to fund fees and expenses, with a view to maximizing its available liquidity to fund a portion of the cash consideration, transaction costs and expenses for the previously announced acquisition of SECURE Waste Infrastructure Corp. and to pursue other growth initiatives. The Notes Offering is expected to lower the Company's average effective borrowing rate and to be leverage neutral, consistent with the Company's commitment to maintain leverage in the mid 3.0x range.

The Notes being offered in the Notes Offering have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the Securities Act. In Canada, the Notes are to be offered and sold on a private placement basis in certain provinces of Canada.

This release shall not constitute an offer to sell or a solicitation of an offer to buy any security, nor shall there be any offer, solicitation or sale of any security in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About GFL

GFL is the fourth largest diversified environmental services company in North America, providing comprehensive solid waste management services from its platform of facilities throughout Canada and 18 U.S. states. GFL has a workforce of more than 15,000 employees across its organization.

Forward-Looking Information

This release includes certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information"), within the meaning of applicable U.S. and Canadian securities laws, respectively. Forward-looking information includes all statements that do not relate solely to historical or current facts and may relate to our future outlook, financial guidance and anticipated events or results and may include statements regarding our financial performance, financial condition or results, business strategy, growth strategies, budgets, operations and services. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", although not all forward-looking information includes those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances.

Forward-looking information is based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, is subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Important factors that could materially affect our forward-looking information can be found in the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2025 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Shareholders, potential investors and other readers are urged to consider these risks carefully in evaluating our forward-looking information and are cautioned not to place undue reliance on such information. There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained in this release represents our expectations as of the date of this release (or as the date it is otherwise stated to be made), and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable U.S. or Canadian securities laws.

For more information:
Patrick Dovigi
+1 905-326-0101
[email protected]

SOURCE GFL Environmental Inc.

On June 23, 2026, Oscar Health Inc OSCR shares rose 4.9% to a current price of $29.93, reflecting a strong performance in the market. The stock has experienced a significant 52-week range, with a high of $30.09 and a low of $10.69.

GF Value™ verdict: Current price is $29.93, and GF Value™ is $21.02, indicating the stock is 42.4% overvalued.GF Score™ of 79/100 suggests that the stock is rated as Above Average in terms of overall quality and performance potential.Notable signal: Insider activity indicates a bullish sentiment, with insiders buying $11.9M and selling $7.0M in the last 3 months. Is OSCR Overvalued or Undervalued? Oscar Health Inc OSCR is currently assessed as overvalued according to the GF Value™, which estimates the fair value at $21.02. This indicates a significant margin of safety that is not present at the current price of $29.93, which is 42.4% above the calculated intrinsic value. The GF Valuation label of "Significantly Overvalued" further emphasizes the risk associated with the stock's current valuation. Investors should be cautious, as buying at overvalued levels may lead to potential losses should the market correct itself or the company fails to meet growth expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This analysis serves as a reminder that while the stock has shown strong momentum and growth, the current price does not reflect an attractive entry point for long-term investors.

How Does OSCR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 32.2x 49.8x Oscar Health's current forward P/E ratio of 32.2x is considerably lower than its 5-year median P/E of 49.8x, suggesting a potential undervaluation relative to its historical performance. This P/E analysis aligns with the GF Value™ verdict, indicating that while the stock is currently overvalued based on GF Value™, it is trading below its historical valuation metrics.

What Does OSCR's GF Score™ Tell Us? Metric Rating GF Score™ 79/100 Financial Strength 6/10 Profitability 3/10 Growth 10/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 79/100 positions Oscar Health in a favorable light, particularly highlighting its growth rank of 10/10, which indicates robust future growth potential. However, the profitability rank of 3/10 suggests that the company may face challenges in generating earnings relative to its peers. The balance between strong growth and average profitability could create volatility in stock performance.

What Are Insiders Doing with OSCR Stock? Recent insider activity for Oscar Health has shown a positive trend, with insiders buying a total of $11.9 million worth of shares while selling $7.0 million in the last three months. This net buying signals confidence from those within the company about its future prospects. Such insider actions can often be indicative of management's belief in the company's growth trajectory and can serve as a bullish signal for market participants.

What This Means for Investors In conclusion, Oscar Health Inc OSCR is currently assessed as overvalued based on its GF Value™ of $21.02 compared to its market price of $29.93. While the stock has demonstrated strong momentum and growth performance, potential investors should be wary of the significant overvaluation and consider the associated risks before making any investment decisions.

For the complete analysis, visit the Oscar Health Inc OSCR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is OSCR's GF Score™?

OSCR has a GF Score™ of 79/100, indicating that it is rated as Above Average in terms of overall quality and potential performance, suggesting a favorable outlook compared to many peers.

Is OSCR overvalued or undervalued?

Based on the GF Value™, OSCR is currently overvalued, with a market price of $29.93 compared to a fair value estimate of $21.02, reflecting a significant overvaluation risk.

What is OSCR's P/E ratio?

The forward P/E ratio for OSCR is currently 32.2x, which is below its historical 5-year median P/E of 49.8x, indicating that while it is trading below historical averages, the stock is still considered overvalued based on GF Value™.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

After dipping 4.5% and ending yesterday's trading session below Monday's close, shares of Nano Nuclear Energy (NNE 4.27%) are powering higher today. With a firm initiating coverage and sharing a bullish outlook on the advanced nuclear reactor stock, investors are racing to click the buy button today.

As of 1:01 p.m. ET, shares of Nano Nuclear are up 11.9%.

Image source: Getty Images.

One firm believes this fast-moving company is in a great position Initiating coverage with a buy rating, Craig Irwin, a Roth Capital analyst, set a $45 price target on Nano Nuclear stock. According to Thefly.com, Irwin based his outlook on the belief that Nano Nuclear is making "rapid progress" toward commencing commercial operations of its small modular reactor, Kronos.

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In addition, Irwin recognizes Nano Nuclear as one of only a few companies that have submitted construction permit applications for small modular reactors to the U.S. Nuclear Regulatory Commission.

Based on its closing price of $24.01 yesterday, Irwin's price target implies an upside of more than 87% for Nano Nuclear.

Should investors proceed to power their portfolios with Nano Nuclear stock? Sure, the prospect of owning a stock that has room to run 87% higher is enticing, but investors need to take the $45 price target with a sizable dash of salt. While Nano Nuclear deserves credit for submitting a construction permit for its Kronos reactor, there's no certainty it will succeed in commencing commercial operations -- let alone recognizing a profit from them if it does.

At this point, Nano Nuclear stock still carries significant risks, so only investors comfortable with speculative investments should consider positions. For those seeking a more conservative approach to nuclear industry exposure, a nuclear energy exchange-traded fund may be a more palatable option.

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.

Nano Nuclear Energy (NNE 4.27%) is having a big moment.

Shares of the nuclear energy stock, while up about 2% on the year, have charged about 15% higher over the last month. A large part of that momentum came from a very bullish $45 price target from an analyst at Roth Capital -- a price that implied a gain of about 87% from its then-current $24.

A stock that has that kind of expected upside can generate a lot of enthusiasm in a short amount of time. But for prudent investors with long-term intentions, it pays to examine the company underneath the aggressive projections.

Image source: Getty Images.

The small reactor company that everyone is talking about As the name suggests, Nano Nuclear Energy is an advanced nuclear company aiming to bring microreactors to the market.

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Founded in the early 2020s, Nano's ambitions, however, extend beyond designing and building reactors: It wants to participate in the nuclear supply chain, from fuel fabrication to fuel transportation to deploying reactors. That vertical integration could, one day, dig a deep moat: Customers might prefer a company that will not only build a reactor, but also supply the fuel to go with it.

Nano has several microreactor designs, each named after a god or titan of antiquity. There's Kronos MMR, a small stationary reactor; Zeus, a portable microreactor designed to fit in a shipping container; and Loki MMR, which Nano has discussed as being potentially deployable for space.

Of these three, Kronos is the furthest along in terms of research and development. Indeed, this gas-cooled reactor cleared an important regulatory hurdle when the Nuclear Regulatory Commission (NRC) formally accepted its construction permit application in April. Construction of a prototype of Kronos, which is slated for the University of Illinois Urbana-Champaign, could begin in mid to late 2027.

The story of Nano stock right now, like other advanced nuclear energy companies, is inseparable from artificial intelligence (AI). The most bullish speculators are envisioning a future in which nuclear power can be a source of clean, round-the-clock electricity to data centers, which can't afford the risks of downtime, power outages, or grid failures.

It's a powerful narrative, but it's a story that hasn't materialized outside the imagination. Several nuclear stocks, including Oklo (OKLO 6.01%) and NuScale Power (SMR 6.63%), have also seen brief periods of explosive growth with that same story billowing their sails. None of these three small reactor developers was beating S&P 500 (^GSPC +0.34%) in the first half of 2026, and only one (NuScale) has an NRC-approved reactor design.

Data by YCharts

The only way Nano can begin succeeding is by bringing a safe, certified microreactor to the market. In that regard, the company has taken big steps, but it could be a few years away from powering up its first reactor. If it does succeed, a sizable investment in Nano today could reinforce a portfolio of winning stocks, setting you up for a good future. That's a big "if," however, and the risks of Nano failing are just as likely right now as its successes.

Nuclear energy stocks have been among the market's biggest winners over the past year, handily outperforming the broader energy sector. It's not hard to imagine why. With power-hungry tech like artificial intelligence (AI) and cloud computing, the clean, round-the-clock power that nuclear can supply has rarely looked more relevant.

Broad exposure to nuclear energy -- such as through an exchange-traded fund (ETF) -- is one way to play this new resurgence. Another is to handpick the nuclear energy stocks yourself. With that in mind, these three stocks are well positioned to grow as the broader industry does.

Image source: Getty Images.

1. Oklo Oklo (OKLO 6.01%) is an advanced nuclear company that's designing small fast-fission reactors with complementary fuel recycling.

That's a mouthful of technical jargon, so let me break it down like this: Instead of a sprawling nuclear power plant, Oklo would like to deploy smaller reactors that can supply 24/7 power while using fuel more efficiently.

Early on, Oklo had the backing of Sam Altman, CEO of OpenAI, and more recently, it has signed agreements with companies including Equinix (EQIX 1.17%), Switch, and Meta Platforms (META +0.05%) to supply power to data centers.

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Oklo still needs regulatory approval to deploy reactors to commercial customers; as such, it hasn't scaled its technology nor proven it can operate reactors on a large scale. The stock is early-stage with plenty of execution risks, yet could be a big winner in the era of AI.

2. Nano Nuclear Energy Nano Nuclear Energy (NNE 4.27%) is another early-stage nuclear energy company working through the NRC regulatory process.

Like Oklo, Nano is designing microreactors. Unlike Oklo, however, which is focused primarily on building and deploying reactors, Nano aims to become vertically integrated. In nuclear energy, that would mean participating in multiple parts of the supply chain, from developing reactors and fuel to transporting nuclear materials.

Another difference from Oklo is that Nano has several microreactor designs, not just one. Indeed, along with a portable reactor design, Nano is developing a space microreactor (Loki) that could be deployed for deep-space missions or extraterrestrial environments.

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For what it's worth, the Trump administration has also been interested in putting a nuclear reactor on the moon to supply power to human bases. Although Nano has not been named a partner, successful deployment of a reactor could create more interest and, eventually, more opportunities.

3. NuScale Power NuScale Power (SMR 6.63%) is developing a small modular reactor (SMR). Unlike Oklo and Nano, however, NuScale's SMR design -- two, in fact -- has been approved by the NRC.

The challenge facing NuScale isn't regulatory, but commercial. So far, the first mover in SMR technology hasn't inked a firm sale of its reactor technology. Its commercial partner, ENTRA1, has helped open the door to a potential first U.S. customer in the Tennessee Valley Authority (TVA), which is interested in deploying 6 gigawatts (GW) of NuScale's technology. NuScale's SMRs are also expected to be deployed for a power plant project in Romania.

Even with two projects in its near future, NuScale has a lot to prove, not the least of which is deploying a reactor on time and within budget. That could take years -- its first reactor probably won't go online until after 2030 -- and revenue growth may be limited until then.

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NuScale, like Oklo and Nano, is a high-risk, high-reward investment in the future of energy. Investors with a long time horizon and high tolerance for volatility might want to consider adding these nuclear stocks to their portfolios.

Nano Nuclear Energy (NNE 4.27%) is an advanced nuclear company whose ambitions coincide with a new trend on Wall Street: small modular reactors (SMRs), or, as Nano calls them, microreactors.

Long overshadowed by Oklo and NuScale Power, Nano's cheaper market valuation and regulatory progression has been drawing attention to Nano's suite of reactor designs. The stock has been gaining momentum over the last month, in spite of no real change to the obstacle stymieing its progress: a lack of regulatory approval.

With a market cap of $1.3 billion and a price between $26 and $27, should long-term investors take advantage of this opportunity, or should they wait for more concrete progress?

Let's take a look.

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Nano's opportunity is enormous, but so is the wait Nano Nuclear is one of the most ambitious novel nuclear energy companies in operation today.

Its goal, aside from certifying its microreactor designs, is to build a vertically integrated nuclear business. That means not just constructing and deploying microreactors but also participating in fuel fabrication and transportation, as well as other parts of the nuclear supply chain.

If it can pull it off, the company's business could look a bit like this: It will deploy microreactors wherever they are needed, whether that's a data center in a rural area, a military base, or even a lunar or deep-sea operation. Revenue could eventually come from selling the electricity generated by these reactors, likely under long-term purchase agreements (PPAs) with customers.

Image source: Getty Images.

Although microreactors have yet to be deployed at scale, companies are already biting. In May, Super Micro Computer (SMCI 1.11%) signed a memorandum of understanding (MOU) with Nano to explore the integration of microreactors with the former's AI infrastructure. That isn't, to be sure, a commitment to buy. But the early partnership demonstrates how interest in this technology could readily expand to other contracts once Nano's designs are certified.

On that front, Nano expects to begin construction of its first KRONOS micro modular reactor (MMR) in the second half of 2027. This, however, depends entirely on a smooth progression of regulatory approvals. The reactor is planned for construction at the University of Illinois Urbana-Champaign, about a hundred miles from the site of the first nuclear reactor in the U.S., the Chicago Pile-1 at the University of Chicago.

Nano has minimal revenue, but a substantial cash and equivalents pile of about $569 million. Even if it burned through $100 million a year -- currently more like $30 million to $40 million -- it could last five years without needing a fresh injection.

Recently, an analyst at Roth Capital set a $45 price target, implying roughly 73% upside from today's $26-ish price.

Nano has the potential to become a significant supplier of electricity, but that potential could take a decade or more to manifest. By that time, the energy landscape could look very different, perhaps to the point of diminishing Nano's most exciting prospects now. Given the uncertainty, this is still a stock for aggressive investors, those who want to take a calculated risk investing in a nascent industry. Those with less risk tolerance may want to look at a nuclear energy exchange-traded fund (ETF) with Nano as a holding.

nVent Electric Today

NVT

nVent Electric

$168.30 -0.07 (-0.04%)

As of 10:27 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$68.90▼

$184.64Dividend Yield0.50%

P/E Ratio56.04

Price Target$189.50

When a stock is up more than 60% in just six months, it can create one of two emotions in investors. On the one hand, it can create FOMO (fear of missing out), which can cause investors to chase the stock higher.

The other emotion is fear, which may cause existing shareholders to sell.

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This could be the situation with nVent Electric NYSE: NVT. This is a London-based manufacturer of electrical components and liquid cooling systems used inside data centers.

NVT is up 66% year to date, but recent analyst activity suggests there could be significant upside for the stock.

Part of the Modern Day Gold RushAs it turns out, data centers take a long time to build. That revelation is one reason behind the volatility in the AI infrastructure trade. Investors bought into many stocks that were linked to data centers in a fashion that resembled a modern-day gold rush.

But the real advice to follow behind this trade may be to be quick, but don’t hurry. It’s important to be in these stocks, but there is time. Many planned data center projects haven’t broken ground yet and won’t be completed in 2027, let alone 2026. This will be a growth story that has years to go.

That slow, steady approach applies to nVent. Energy is a major story relative to data centers. Specifically, the hardware needed to power AI models needs access to 24/7 power, and there’s not enough of it.

However, the other energy issue is the heat density problem created by modern AI and high-performance computing hardware. For example, many of the top AI accelerators in use today can draw 700W to 1,000W per chip. A single server rack full of them can pull 100kW or more. That exceeds the cooling capacity of traditional air cooling systems.

This is why many hyperscalers are turning to liquid cooling solutions. Water conducts heat roughly 25x more efficiently than air. That means far more heat can be removed from a much smaller space, which directly enables denser, more powerful server configurations.

The Sector Is Underpriced, But Not for LongInvestors who are aware of the liquid cooling story may point out that nVent competes with Vertiv NYSE: VRT in this space. That’s true, but the focus should be on the size of the pie, which will allow for more than one winner.

The liquid cooling market in 2026 is only projected to be valued at around $8.5 billion. However, that number is expected to grow to around $17.7 billion by 2030. That’s a compound annual growth rate (CAGR) of over 20%.

In its Q1 2026 earnings report, nVent showed why investors can believe there’s more growth to come. The company delivered record revenue and earnings per share (EPS). But more importantly, it announced a backlog that exceeded forecasts. That allowed it to raise its full-year guidance on the top and bottom lines.

nVent Benefits From Long-Term AI Infrastructure SpendingOverall MarketRank™92nd Percentile

Analyst RatingBuy

Upside/Downside12.2% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment1.37 Insider TradingSelling Shares

Proj. Earnings Growth22.42%

See Full Analysis

The risk in the AI infrastructure story in 2026 goes back to the timing. Specifically, is the AI infrastructure buildout an illusion or a story that’s still in the early stages? Critics (and cynics) would say that a data center planned isn’t the same as a data center built.

However, the earnings season just ended confirmed that hyperscalers continue to commit capital, and companies like nVent are confirming that those dollars are translating to projects that are under construction.

Companies such as Microsoft NASDAQ: MSFT and Alphabet NASDAQ: GOOGL aren’t going to commit billions of dollars and eat into their earnings and free cash flow on projects they don’t intend to see through. The current reality is that many businesses will demand the compute capacity to run AI for their operations.

That’s why analysts continue to increase their price targets. In June, analysts from Bernstein and Melius Research issued price targets of $218 and $214, respectively, for NVT. Both are well above the consensus price target of $189.50.

NVT Stock Pullback: Key Levels Investors Should WatchNVT has been in a strong uptrend since early 2026, consistently riding above its 50-day moving average. That gap between the current price and the simple moving average (SMA) signals solid bullish momentum with room to pull back before the trend is threatened.

The recent drop of over 8% on a noticeable volume spike is the key event to watch. That kind of selling pressure warrants caution in the short term.

The RSI sits at 53.36, right in neutral territory, which in this case is constructive. It means NVT isn't oversold, but it also isn't overheated, leaving room to move in either direction.

Watch the $159–$160 SMA zone as the first meaningful support level on any continued weakness.

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

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Powell Industries (POWL - Free Report) closed the most recent trading day at $291.50, moving -5.3% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.44%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 2.22%.

Shares of the energy equipment company witnessed a gain of 10.24% over the previous month, beating the performance of the Industrial Products sector with its gain of 9.25%, and the S&P 500's gain of 0.08%.

Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.49, showcasing a 12.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $318.25 million, indicating a 11.17% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.47 per share and a revenue of $1.2 billion, indicating changes of +10.51% and +8.73%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Powell Industries is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Powell Industries is holding a Forward P/E ratio of 56.27. This denotes a premium relative to the industry average Forward P/E of 23.32.

We can additionally observe that POWL currently boasts a PEG ratio of 4.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.85.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Cerebras Systems (NASDAQ:CBRS) is approaching its first earnings report as a public company with execution rather than demand as the key variable to watch, according to Wedbush analysts.

Demand risk is "almost zero," according to Wedbush, given Cerebras's existing deals with OpenAI and Amazon, meaning results will largely reflect how well management delivers against its own targets.

Driving the optimism is TSMC capacity. The analysts believe the foundry will deliver at least modest upside to expected wafer output in 2026 and 2027, which could translate into incremental system sales for Cerebras.

That dynamic is further helped by tightening accelerator availability across the industry and growing memory sourcing constraints, a challenge that matters less for Cerebras because its chips rely on SRAM rather than high-bandwidth memory.

The firm also flags the company's next-generation WSE-4 chip as a potential positive catalyst. While Cerebras has not provided a formal timeline, Wedbush notes that general speculation points to a late 2026 or early 2027 launch and ramp, with the new design expected to improve both margins and revenue.

Wedbush also credits management with building in some conservatism at the IPO stage, suggesting that simply executing to plan could yield upside to current estimates.

Longer term, the firm argues Cerebras's story is less about near-term beats and more about capturing share in a rapidly expanding AI accelerator market. Analysts point to continued growth in inference demand, potential incremental customers supported by TSMC output, and worsening memory pricing constraints as tailwinds that should work in the company's favor.

The firm considers 2028 the appropriate reference year as the first in which OpenAI-related investment costs begin to moderate and the company reaches what it views as meaningful revenue and operational scale.

Wedbush maintains a Buy rating and $270 price target on Cerebras based on a 40x price-to-earnings multiple applied to its 2028 EPS estimate of $6.03, plus net cash of $28.19 per share.

Cerebras Systems (NASDAQ:CBRS) is approaching its first earnings report as a public company with execution rather than demand as the key variable to watch, according to Wedbush analysts.

Demand risk is "almost zero," according to Wedbush, given Cerebras's existing deals with OpenAI and Amazon, meaning results will largely reflect how well management delivers against its own targets.

Driving the optimism is TSMC capacity. The analysts believe the foundry will deliver at least modest upside to expected wafer output in 2026 and 2027, which could translate into incremental system sales for Cerebras.

That dynamic is further helped by tightening accelerator availability across the industry and growing memory sourcing constraints, a challenge that matters less for Cerebras because its chips rely on SRAM rather than high-bandwidth memory.

The firm also flags the company's next-generation WSE-4 chip as a potential positive catalyst. While Cerebras has not provided a formal timeline, Wedbush notes that general speculation points to a late 2026 or early 2027 launch and ramp, with the new design expected to improve both margins and revenue.

Wedbush also credits management with building in some conservatism at the IPO stage, suggesting that simply executing to plan could yield upside to current estimates.

Longer term, the firm argues Cerebras's story is less about near-term beats and more about capturing share in a rapidly expanding AI accelerator market. Analysts point to continued growth in inference demand, potential incremental customers supported by TSMC output, and worsening memory pricing constraints as tailwinds that should work in the company's favor.

The firm considers 2028 the appropriate reference year as the first in which OpenAI-related investment costs begin to moderate and the company reaches what it views as meaningful revenue and operational scale.

Wedbush maintains a Buy rating and $270 price target on Cerebras based on a 40x price-to-earnings multiple applied to its 2028 EPS estimate of $6.03, plus net cash of $28.19 per share.

Cerebras Systems Inc. (NASDAQ:CBRS) is in the spotlight Tuesday ahead of its first-quarter earnings report today after the market closes.

CBRS stock is slipping today. What’s the outlook for CBRS shares? The report will mark a significant milestone for the AI infrastructure company—its first earnings release since going public on May 14. Analysts are expecting a loss of 16 cents per share on revenue of $180.81 million.

What Is Cerebras?What to WatchAs Cerebras’ first public earnings report, investors will be closely watching revenue growth trajectory, customer wins and any forward guidance. According to the company’s pre-IPO filings, Cerebras reported full-year 2025 revenue of $510 million. Commentary on AI infrastructure demand, competitive positioning, and progress on its AWS partnership will be key focal points on today’s conference call at 5 p.m. ET.

Cerebras Shares Edge Lower CBRS Price Action: At the time of publication, Cerebras shares are trading 4.67% lower at $213.95, according to data from Benzinga Pro.

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A broader semiconductor sell-off is weighing on Cerebras Systems CBRS shares as the company warms up to report its quarterly earnings later today (after market close).

While the Nasdaq-listed firm is widely regarded as “The Nvidia Challenger”, options traders aren’t entirely convinced that the Q1 print will help it reclaim some of its year-to-date losses in the days ahead.

Heading into the financial release, Cerebras stock is down some 30% versus the start of this year.

Options data from Barchart shows the put-to-call ratio on contracts expiring Jun. 26 sits at 1.75 at the time of writing, indicating a very strong bearish skew.

The lower price on those contracts is set at about $187 currently, signaling CBRS shares will likely continue their plunge and lose another 12.7% by the end of this week.

Crucially, technical indicators also favour further downside. Cerebras tanked below its 20-day MA this morning, suggesting bears have taken back control for the near-term.

Plus, the company’s relative strength index (RSI) sits in the early 40s currently, reinforcing potential for further decline before the stock slips into the “oversold” territory.  

Cerebras Technicals Options traders remain bearish on Cerebras shares primarily because they’re trading at a stretched price-to-sales (P/S) multiple of about 91x currently.

And that’s when the company is broadly expected to remain in loss in its fiscal Q1; analysts’ call currently sits at negative $0.14 per share for the first quarter.

Moreover, estimates for CBRS’s revenue hover around $57 million at writing, which would mean the semiconductor firm is on track to post a year-over-year sales decline in 2026; its top-line came in at $510 million last year.

Considering these numbers, it’s increasingly difficult to justify Cerebras Systems current valuation multiple which actually sits miles above the chip sector leader, Nvidia, at about 23x sales only.

Investors use price-to-sales multiples to assess a company's valuation relative to the revenue it is expected to generate.

With the growth of online investment platforms, tracking such metrics has become significantly easier and more accessible to market participants.

Compounding CBRS stock’s valuation headache is the hangover of its blockbuster initial public offering (IPO) last month.

Listing on May 14th at a whopping $185 per share, and briefly skyrocketing above $380, Cerebras has since fallen victim to brutal post-IPO profit-taking and cooling AI infrastructure hype.

While the company’s hardware itself remains undeniably revolutionary – featuring the monolithic WSE-3 processor designed to bypass traditional multi-chip bottlenecks, analysts are pivoting from theoretical compute capability to actual sequential execution.

For Cerebras Systems Inc to stabilize its volatile stock, management must use tonight’s conference call to outline concrete customer diversification, ensuring that its immense processing power translates into a sustainable, growing order book.

That said, Wall Street continues to rate CBRS at “Strong Buy”, with a bullish mean price target of about $289.

The Cerebras logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

June 23 (Reuters) - Cerebras Systems (CBRS.O), opens new tab in its debut report as a public company forecast full-year profit margins would ​drop below the first-quarter figures and lag levels of chip companies including Nvidia (NVDA.O), opens new tab, ‌sending shares down 10% in extended trading on Tuesday.

The chip designer, which raised $5.55 billion in its IPO last month, is focused on inference, the process by which AI systems respond to user queries, and has tied ​much of its growth to OpenAI, including a $20 billion multi-year deal under which the ChatGPT creator ​will deploy 750 megawatts of Cerebras chips.

Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.

Cerebras forecast adjusted gross margins of ⁠38% to 41% for full-year 2026, down from the 47% it reported for the first quarter. While the projection ​is above analyst estimates of 29.58%, it is far below those of rivals such as ​Nvidia, whose gross margins are in the mid-70% area, and Advanced Micro Devices (AMD.O), opens new tab, whose gross margins are in the mid-50% range.

It expects second quarter adjusted gross margin in the range of 36% to 38%, also below ​the 47% posted in the first quarter.

Ben Bajarin, CEO of technology consulting firm Creative Strategies, ​said Cerebras' approach, which involves making some of the world's largest chips, is likely pressuring its gross margins ‌because ⁠such large chips are difficult to manufacture.

Cerebras also is temporarily renting back its own systems from an existing client to meet short-term demand while it builds out more data center capacity, Chief Financial Officer Bob Komin said on a post-earnings call.

"The additional cost of renting third-party ​capacity will depress core ​cloud and other services ⁠margin temporarily from current levels," Komin said, adding Cerebras aims to achieve gross margins of 60% over the long term.

Cerebras is in early ​discussions for data centers in Israel, the UAE, Australia, Singapore, India ​and Indonesia, ⁠CEO Andrew Feldman said.

It reported revenue of $193.4 million for the first quarter, compared with $99.5 million in the same period a year ago. Cerebras said its adjusted net loss for the quarter was $2.5 million, ⁠narrower than ​analyst estimates of an adjusted loss of $36.75 million.

For the ​second quarter, Cerebras forecast adjusted sales of $194 million, above estimates of $174.34 million, according to LSEG data.

Reporting by Juby Babu in Mexico ​City and Stephen Nellis in San Francisco; Editing by Sahal Muhammed, Matthew Lewis and Chris Reese

Our Standards: The Thomson Reuters Trust Principles., opens new tab

GAAP quarterly revenue of $193.4 million; record core revenue of $191.3 million, up 92% from a year agoAnnounced a multi-year deal with OpenAI for 750MW valued at more than $20 billionLaunched multi-year partnership with Amazon to bring Cerebras’ fast inference to AWS Raised $6.4 billion in Q2 in largest semiconductor IPO of all time SUNNYVALE, Calif., June 23, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems Inc. (NASDAQ: CBRS), maker of the world’s fastest AI infrastructure, today announced financial results for the first quarter of fiscal year 2026, ended March 31, 2026.

“This was an outstanding start to 2026 for Cerebras. And we are proud of our achievements,” said Andrew Feldman, Cerebras co-founder and CEO. “AI has moved from being a novelty to being useful and productive. Cerebras’ wafer-scale technology delivers the fastest AI in the world. And fast AI is more valuable than slow AI because it is more productive. It provides answers in less time. It delivers solutions in less time. This in turn has created significant momentum with pioneering customers like OpenAI and AWS and emerging customers as well. 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.”

“Our strong financial performance in Q1 highlights the large and rapidly growing opportunity in front of us,” said Bob Komin, Cerebras CFO. “We are focused on innovating at the pace of demand, supporting accelerating investments in growth and capitalization on strategic opportunities while effectively managing our capital structure.”

Q1 2026 and Recent Business Highlights

Announced a multi-year deal with OpenAI valued at more than $20 billion Reached agreement for OpenAI to deploy 750 megawatts of Cerebras’ high-speed inference compute over the next several yearsCo-launched Codex-Spark, a model designed for near-instant coding and optimized for interactive work where latency matters, delivering more than 1,000 tokens per second Began a multi-year partnership with AWS to bring fast inference to an even bigger scale through global distribution for every startup, AI native, and enterprise company Together with AWS, we will launch a disaggregated inference strategy, with AWS’s Trainium 3 chips performing the prefill and the Cerebras CS-3 running blisteringly fast inference for decode Launched enterprise customer trials of Kimi K2.6 and Gemma 4 Kimi K2.6, the leading open-weight frontier model and the first trillion-parameter model served on Cerebras, achieved performance approaching 1,000 tokens per second as independently measured by Artificial AnalysisGemma 4 31B, flagship 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, enabling image understanding at Cerebras speed Raised $6.4 billion in gross proceeds through our IPO, in addition to the $1 billion Series H pre-IPO financing closed in February and the $1 billion working capital loan from OpenAI in January. Also, in April, Cerebras closed a revolving credit facility for up to $850 million from a broad syndicate of investment banks to further support the company’s strategy to accelerate the pace of our data center acquisitions. 1Q 2026 Financial Highlights

GAAP Financial Results:

GAAP revenue of $193.4 million, up 13% sequentially and up 94% year-over-year Hardware revenue of $110.6 million, up 59% year-over-yearCloud and other services revenue of $82.8 million, up 178% year-over-year GAAP gross margin of 45% GAAP hardware gross margins of 41%GAAP cloud and other services gross margins of 49% GAAP loss from operations of $15.0 millionGAAP net loss of $14.0 millionCash, cash equivalents, restricted cash, and short-term investments of $3.3 billion Core Financial Results are all non-GAAP metrics (and exclude the impact of amortization of customer warrants, data center pass-through revenues and costs, stock-based compensation, and certain other items):

Core total revenue of $191.3 million, up 12% sequentially and up 92% year-over-year Core hardware revenue of $111.6 million, up 60% year-over-yearCore cloud and other services revenue of $79.8 million, up 167% year-over-year Core gross margin of 47% Core hardware gross margins of 42%Core cloud and other services gross margins of 53% Core operating loss of $3.5 millionCore net loss of $2.5 million Q2 2026 Financial Outlook

Core Non-GAAP Financial Outlook: Core revenue of approximately $194.0 million, up 88% year-over-yearCore gross margin in the range of 36 - 38%Core operating margins in the range of  (30) to (32)% Full Year Fiscal 2026 Financial Outlook

Core Non-GAAP Financial Outlook:

Core revenue of $855.0 to 865.0 million, up 69% year-over-year at the midpointCore gross margin in the range of 38 - 41%Core operating margins in the range of (28) to (32)% Earnings Webcast and Conference Call

Cerebras Systems will host a conference call to review its financial results for the first quarter of fiscal 2026 and to discuss our financial outlook today at 2 p.m. PT (5 p.m. ET). Interested parties may join the conference call via the webcast and can be accessed at the Cerebras website at https://investors.cerebras.ai/. The webcast will be recorded and available for replay on the same website following the conclusion of the conference call.

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.

Investor Relations
Sean Dorsey
[email protected]

Corporate Communications
Kriselle Laran
[email protected]

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 regarding Cerebras’ future financial performance, including Cerebras’ expectations regarding its revenue, cash flows, expenses, gross margins, and other results of operations, business strategy, such as partnerships, investments, financings, borrowings, capital structure, capital allocations and data centers, growth and market opportunity, customer demand, product roadmap, technology leadership, supply chain, operating model, and outlook for Q2 and full year 2026, as well as the timing, execution and anticipated benefits of customer, partner and financing arrangements, deployments and capacity expansion initiatives, 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 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.

Discussion of Non-GAAP Financial Measures

Use of non-GAAP financial measures

We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include Core total revenue, Core hardware revenue, Core cloud and other services revenue, Core gross profit, Core hardware gross profit, Core cloud and other services gross profit, Core gross margin, Core hardware gross margin, Core cloud and other services gross margin, Core operating loss, Core operating margin, Core net loss, and adjusted earnings before income tax, depreciation and amortization (“Adjusted EBITDA”). We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, US GAAP. The GAAP measures comparable to the supplemental non-GAAP financial measures are as follows:

The GAAP measure most directly comparable to Core total revenue is total revenue.The GAAP measure most directly comparable to Core hardware revenue is hardware revenue.The GAAP measure most directly comparable to Core cloud and other services revenue is cloud and other services revenue.The GAAP measure most directly comparable to Core gross profit is GAAP gross profitThe GAAP measure most directly comparable to Core gross margin is GAAP gross marginThe GAAP measure most directly comparable to Core hardware gross margin is hardware gross marginThe GAAP measure most directly comparable to Core cloud and other services gross margin is cloud and other services gross marginThe GAAP measure most directly comparable to Core operating loss is loss from operationsThe GAAP measure most directly comparable to Core operating margin is GAAP operating marginThe GAAP measure most directly comparable to adjusted earnings before income tax, depreciation and amortization (“Adjusted EBITDA”) is loss from operations.The GAAP measure most directly comparable to Core net loss is net loss. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables below or elsewhere in the materials accompanying this press release.

Usefulness of non-GAAP financial measures to investors

By excluding certain items that may not be indicative of our recurring operating results from our core technology and service offerings and stock-based compensation from grants of equity awards, we believe that the Non-GAAP metrics described below provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow additional information with respect to financial measures used by management in its financial and operational decision-making and may be useful to our institutional investors and the analyst community to help them analyze the health of our business. Disclosure of these non-GAAP financial measures also facilitates the comparisons of Cerebras’ operating performance with the performance of other companies in the same industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a manner comparable to their core operations.

Economic substance of and material limitations associated with non-GAAP financial measures used by Cerebras

Core revenue, Core hardware revenue, Core cloud and other services revenue, Core gross profit, Core hardware gross profit, Core cloud and other services gross profit, Core gross margin, Core hardware margin, Core cloud and other services margin, Core operating loss, Core operating margin, Adjusted EBITDA and Core net loss are adjusted, as applicable, to: (i) exclude non-cash stock-based compensation; (ii) exclude pass-through revenues and costs that are not part of our core technology and services offering; and (iii) add back non-cash amortization from customer warrants that is recorded as a reduction in revenues. Non-GAAP adjusted EBITDA excludes the impacts of depreciation and amortization and stock-based compensation.

Core gross margin, Core hardware margin, and Core cloud and other services margin represent Core gross profit, Core hardware gross profit, and Core cloud and other services gross profit, respectively, expressed as a percentage of their corresponding Core revenue.

More specifically, Cerebras excludes each of those items mentioned above for the following reasons:

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to employees, Cerebras excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding stock-based compensation expense.Amortization of customer warrants consists of equity granted to customers and recorded as contra-revenue. We exclude the impact of amortization of customer warrant assets recorded as contra‑revenue from our non‑GAAP results because it represents a non‑cash, valuation‑driven adjustment associated with equity instruments issued to customers. This adjustment does not reflect the underlying economics of our core revenue‑generating activities, including pricing, volume, or cost of delivering our products and services, and therefore may not be indicative of our ongoing operating performance.Pass-through revenue and associated pass-through cost of revenue relate to non-recurring data center start-up and recurring data center costs that are incurred on behalf of specific customers. We exclude pass‑through revenue and the associated pass-through cost of revenue from our non‑GAAP financial measures because such amounts are incurred on behalf of specific customers based on capacity deployment options and may vary significantly from period to period. These pass-through revenues and costs do not reflect the underlying economics of our core hardware technology and services offerings, generate fixed minimal gross margins and can significantly distort period‑to‑period comparisons of our operating performance. There are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. No reconciliation is provided with respect to certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results. Cerebras compensates for these limitations on the use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Cerebras also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure for this quarter and prior periods within this press release and Cerebras encourages investors to review those reconciliations carefully.

 CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
  Three Months Ended March 31,  2026   2025 Revenue   Hardware$110,593  $69,674 Cloud and other services 82,813   29,838 Total revenue 193,406   99,512 Cost of revenue   Hardware 64,931   48,410 Cloud and other services 42,299   9,498 Total cost of revenue 107,230   57,908 Gross profit 86,176   41,604 Operating expenses   Research and development 75,495   52,751 Sales and marketing 14,701   10,326 General and administrative 11,017   6,997 Total operating expenses 101,213   70,074 Loss from operations (15,037)  (28,470)Other income, net 2,528   6,286 Loss before income taxes (12,509)  (22,184)Income tax expense 1,497   1,683 Net loss$(14,006) $(23,867)    Net loss per share, basic and diluted$(0.22) $(0.46)Weighted average shares outstanding, basic and diluted 62,806   52,003   CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited)
(in thousands)
  Three Months Ended March 31,  2026   2025 Net loss$(14,006) $(23,867)Change in foreign currency translation adjustments, net of tax 911   180 Available-for-sale investments:   Change in net unrealized gain (loss) on debt securities, net of tax 1,184   (72)Comprehensive loss$(11,911) $(23,759)  CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)  March 31, 2026 December 31, 2025ASSETS   Current assets:   Cash and cash equivalents$1,716,016  $701,706 Restricted cash 1,029,098   228,672 Investments 515,605   406,531 Accounts receivable, net 62,631   50,423 Inventories 89,040   63,626 Customer warrants 90,701   60,906 Prepaid expenses and other current assets 77,870   31,782 Total current assets 3,580,961   1,543,646 Property and equipment, net 572,439   437,396 Customer warrants, net of current portion 425,355   91,447 Operating lease right-of-use assets 353,303   248,950 Other non-current assets 16,320   4,598 Total assets$4,948,378  $2,326,037     LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT   Current liabilities:   Accounts payable$50,336  $48,630 Deferred revenue 149,918   131,049 Operating lease liability 66,218   45,865 Customer deposits 368,426   354,460 Loan from customer 621,306   — Accrued and other current liabilities 171,042   139,536 Total current liabilities 1,427,246   719,540 Deferred revenue, net of current portion 94,344   35,847 Operating lease liability, net of current portion 312,474   215,957 Loan from customer, net of current portion 361,617   — Total liabilities$2,195,681  $971,344     Redeemable convertible preferred stock$2,947,379  $1,933,348     Stockholders’ deficit   Class A common stock 1   1 Class N common stock —   — Treasury stock 742,713   346,829 Additional paid-in capital (21,456)  (21,456)Accumulated other comprehensive income 3,396   1,301 Accumulated deficit (919,336)  (905,330)Total stockholders’ deficit (194,682)  (578,655)Total liabilities, redeemable convertible preferred stock, and stockholders’ deficit$4,948,378  $2,326,037   CEREBRAS SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
  Three Months Ended March 31,  2026   2025 Cash flows from operating activities:   Net loss$(14,006) $(23,867)Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:   Depreciation and amortization 18,175   3,911 Non-cash interest expense 18,949   — Non-cash lease expense 15,775   2,912 Stock-based compensation 9,593   9,154 Provision for product warranties 4,590   4,500 Amortization of customer warrants 2,053   — Other (959)  (254)Changes in operating assets and liabilities:   Accounts receivable (12,208)  56,787 Inventories (21,684)  53,752 Prepaid expenses and other assets (57,603)  3,688 Accounts payable (10,070)  (5,650)Deferred revenue 36,769   15,055 Customer deposits 13,966   (159,599)Other liabilities 8,995   (15,326)Net cash flows provided by (used in) operating activities$12,335  $(54,937)Cash flows from investing activities:   Purchases of property and equipment$(131,970) $(98,244)Purchases of investments (308,801)  (20,175)Maturities and sales of investments 204,155   61,673 Net cash flows used in investing activities$(236,616) $(56,746)Cash flows from financing activities:   Proceeds from sale of shares of Series H redeemable convertible preferred stock$1,014,249  $— Costs incurred in connection with the sale of shares of Series H redeemable convertible preferred stock (218)  — Proceeds from Working Capital Loan 1,004,571   — Proceeds from issuance of shares of Class N common stock 15,019   — Proceeds from exercise of stock options 5,315   1,552 Tax withholding from tender offer (623)  — Payments of deferred offering costs (207)  — Net cash flows provided by financing activities$2,038,106  $1,552 Effect of exchange rate on cash 911   180 Increase in cash, cash equivalents, and restricted cash$1,814,736  $(109,951)Cash, cash equivalents, and restricted cash beginning of period 930,378   581,965 Cash, cash equivalents, and restricted cash end of period$2,745,114  $472,014   CEREBRAS SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands)
   Three Months Ended March 31,   2026   2025  Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP revenue $193,406  $110,593 $82,813  $99,512 $69,674 $29,838Less: Pass-through revenue  (4,111)  —  (4,111)  —  —  —Add: Amortization of customer warrant assets  2,053   969  1,084   —  —  —Core revenue $191,348  $111,562 $79,787  $99,512 $69,674 $29,838   Three Months Ended March 31,   2026   2025  Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP gross profit $86,176  $45,662 $40,514  $41,604 $21,264 $20,340Less: Pass-through revenue  (4,111)  —  (4,111)  —  —  —Add: Pass-through costs  3,991   —  3,991   —  —  —Add: Amortization of customer warrant assets  2,053   969  1,084   —  —  —Add: Stock-based compensation expense  950   238  712   326  82  245Core gross profit $89,059  $46,869 $42,190  $41,930 $21,346 $20,585   Three Months Ended March 31,  2026  2025   Total Hardware Cloud and Other Services Total Hardware Cloud and Other ServicesGAAP gross margin 44.6% 41.3% 48.9% 41.8% 30.5% 68.2%Non-GAAP adjustments 1.9% 0.7% 4.0% 0.3% 0.1% 0.8%Core gross margin 46.5% 42.0% 52.9% 42.1% 30.6% 69.0%   Three Months Ended March 31,   2026   2025   Total Research and Development Sales and Marketing General and Administrative Total Research and Development Sales and Marketing General and AdministrativeGAAP operating expenses $101,213  $75,495  $14,701  $11,017  $70,074  $52,751  $10,326  $6,997 Less: Stock-based compensation expense $(8,643) $(5,699) $(1,792) $(1,152) $(8,828) $(5,712) $(1,949) $(1,167)Core operating expense $92,570  $69,796  $12,909  $9,865  $61,246  $47,039  $8,377  $5,830   Three Months Ended March 31,  2026   2025 GAAP loss from operations$(15,037) $(28,470)Less: Pass-through revenue (4,111)  — Add: Stock-based compensation expense 9,593   9,154 Add: Pass-through costs 3,991   — Add: Amortization of customer warrant assets 2,053   — Core operating loss$(3,511) $(19,316)  Three Months Ended March 31, 2026  2025 GAAP operating margin(8)% (29)%Non-GAAP adjustments6% 9%Core operating margin(2)% (19)%  Three Months Ended March 31,  2026   2025 GAAP loss from operations$(15,037) $(28,470)Add: Depreciation and amortization 18,175   3,911 Add: Stock-based compensation 9,593   9,154 Adjusted EBITDA$12,731  $(15,405)  Three Months Ended March 31,  2026   2025 GAAP net loss$(14,006) $(23,867)Less: Pass-through revenue (4,111)  — Add: Stock-based compensation expense 9,593   9,154 Add: Pass-through costs 3,991   — Add: Amortization of customer warrant assets 2,053   — Core net loss$(2,480) $(14,713)

Chip maker said it expects to keep operating at a loss, highlighting the heavy costs of the AI buildout.

Cerebras shares are approaching critical lows. Why are CBRS shares at support? Q1 Highlights Cerebras reported an adjusted loss of 4 cents per share, beating the consensus estimate of a 16 cent-loss. In addition, it reported revenue of $193.40 million, beating the consensus estimate of $181.59 million.

Revenue grew 94% year-over-year, with hardware revenue up 59% and cloud and other services revenue up 178%. Gross margin came in at 45%. The company ended the quarter with $3.3 billion in cash, cash equivalents, restricted cash and short-term investments.

Key DealsCerebras announced a multi-year deal with OpenAI valued at more than $20 billion, covering 750 megawatts of high-speed inference compute. The company also launched a multi-year partnership with AWS to bring fast inference to global distribution for startups, AI-native companies, and enterprises, combining AWS’s Trainium 3 chips with Cerebras CS-3 systems in a disaggregated inference strategy.

GuidanceCerebras sees second-quarter revenue of $194.00 million, versus the consensus estimate of $174.34 million. The company anticipates fiscal-year revenue between $855.00 million and $865.00 million, versus the consensus estimate of $823.89 million.

Cerebras Shares RetreatCBRS Price Action: At the time of publication, Cerebras shares are trading 9.89% lower at $204.30, according to data from Benzinga Pro.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPCX either through stock ownership, options, or other derivatives. 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.

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Space Exploration Technologies (SPCX +1.11%) just executed one of the biggest and most successful IPOs in history. After going public at a $1.77 trillion valuation, the company's market cap immediately soared above $2.5 trillion. Not bad for a business that generated a $4.9 billion loss in 2025, and another $4.3 billion loss in the first quarter of this year.

As the old adage says, however, what goes up must come down. Only 4.2% of SpaceX's outstanding shares are currently tradable on public markets, and this limited float makes the stock more prone to volatile ups and downs. That's exactly what we've seen with SpaceX stock thus far. After zooming from $150 per share to nearly $220 per share in a matter of days, SpaceX stock has settled back down to around $160 per share near market close on Tuesday -- a 27% drop also occurring over a matter of days.

Should you be buying the dip? That all comes down to how you answer one question.

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SpaceX investors should ask themselves this question Here's the question: Do you think orbital data centers will ever exist? Yes, SpaceX is generating modest profits in its rocket division. Yes, its Starlink internet service is also profitable. However, neither rockets nor Starlink will ever justify SpaceX's valuation on their own. Even SpaceX admits as much. The company's estimated total addressable market for those two divisions totals just $2 trillion. That's substantially less than the company's entire market cap today.

In reality, SpaceX's valuation is only justified if the company is able to grow its AI division substantially. SpaceX believes that AI alone presents a $26.5 trillion opportunity, compared to just $2 trillion for rockets and Starlink combined.

Image source: Getty Images.

How exactly will SpaceX grow its AI business? Most of this growth will stem from one opportunity: Roughly $22.7 trillion of SpaceX's claimed $26.5 trillion growth potential in AI is exclusively related to "enterprise applications." Enterprises are businesses, and the term is quite a catchall. According to SpaceX's IPO prospectus:

For enterprises and governments, frontier models and agentic AI -- autonomous systems capable of multi-step reasoning and independent task execution -- are beginning to manage increasingly complex processes and workflows. As of February 2026, more than 80% of Fortune 500 companies were using AI active agents. Entire industries are being reshaped by AI-driven applications, including agentic commerce (personalized AI-directed shopping), vibe coding (software development with minimal or no human-written code), and autonomous driving for vehicles.

Despite the variety of enterprise applications SpaceX will be pursuing, one thing is clear: The company will need a lot more compute power to make it all possible. That requires building more data centers, and data centers are facing critical growth constraints, including land, water, and energy availability. That's why SpaceX is looking to launch data centers into space. Low earth orbit data centers would -- at least on paper -- lower operating costs, taking advantage of limitless solar energy.

SpaceX CEO Elon Musk reportedly wants to put 1 million AI compute satellites into space, potentially beginning as early as next year. "We've got a pretty good idea of how to operate, just really large constellations, and do it safely now, right? We are the only operator that has any experience of that scale," Musk said earlier this year, according to Space.com.

Whether that will actually happen remains a huge unknown.

SpaceX stock has dipped in its second week of trading, but the investment thesis remains the same. If you're not bullish on AI in general, and in particular SpaceX's ability to launch data centers into space, shares likely aren't for you despite the company's promising rocket and Starlink divisions. Huge success in those two divisions alone won't be enough to justify SpaceX's current multitrillion-dollar valuation.

To be sure, plenty of experts are skeptical. "The pitch for space-based data centers is compelling: falling launch costs, abundant solar energy, no grid queues and no zoning battles," concludes a recent report from the World Economic Forum. "But cooling in space is far harder than it sounds – and the physics may be the biggest obstacle the industry has yet to reckon with."

Buying the dip is only worth considering if you believe SpaceX and Musk have the keys to overcome those obstacles.

Space Exploration Technologies' (SPCX +1.11%) first week as a public company showed that investors were not valuing it like a normal rocket stock. They were paying for a platform that combines Starlink's satellite-internet cash flow, a dominant position in rocket launches, expanding artificial intelligence (AI) infrastructure, mobile connectivity, and the potential commercial success of the Starship reusable rocket system. And don't forget visionary Elon Musk leading it all. 

Since then, SpaceX stock has pulled back sharply from its post-IPO high, closing at $154.60 on June 22. Investors seem to be already questioning the company's premium valuation. Here's what would need to go right for the stock to recover again by 2027 and why I predict it will trade at $192.

Image source: Getty Images.

The best-case target price Analysts estimate SpaceX's 2027 revenue could range from $54.8 billion to $79.3 billion, with the average estimate at $64.1 billion. The company has about 13.1 billion shares outstanding.

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Based on SpaceX's recent share price of $154.60 and the average 2027 revenue estimate of $64.1 billion, the stock is trading at 31.8 times projected 2027 sales. If that same multiple is applied to the high end of the 2027 revenue estimate of $79.3 billion, the company's market capitalization could rise to about $2.5 trillion. With a share count of around 13.1 billion, the company's share price would be about $192.

If SpaceX reaches the low end of the revenue estimate and still trades at about 31.8 times sales, the stock would be trading at roughly $133 at the end of 2027. If the price-to-sales multiple drops to 25, then the stock would trade at $104 per share with that revenue.

Premium valuation needs to be justified SpaceX's Starlink-powered connectivity segment is the key growth engine and generated $11.4 billion of revenue and $4.4 billion of operating income in 2025. Starlink's next challenge is adding high-quality subscribers. Average revenue per user (ARPU) has been declining since 2023 as Starlink expands into more international, lower-priced markets.

Consumer subscribers accounted for over 60% of the connectivity segment revenue in 2025. If revenue mix shifts toward enterprise and government customers, airlines, and maritime users, it could help Starlink offset falling ARPU.

Direct-to-cell lets ordinary smartphones connect directly to Starlink satellites when regular mobile towers are unavailable. Starlink Mobile already earns revenue through sharing arrangements with mobile network operators. The company has already launched around 650 satellites to enable mobile connectivity.

AI revenue also needs to scale while the business becomes profitable. If AI remains capital-intensive without a clear profitability timeline, it could become the reason for multiple compression.

The Starship reusable rocket system is another key growth catalyst. Starship does not need to be fully commercial by 2027. However, investors need to see enough progress to keep believing it can lower launch costs, support larger Starlink satellites, and strengthen SpaceX's long-term growth story.

A share price of $192 -- or more -- by 2027 is possible and is my prediction, but it requires a best-case setup where revenue reaches the high end of expectations and investors remain willing to value SpaceX as a space, connectivity, and AI infrastructure company. 

SpaceX NASDAQ: SPCX is trading around $165, reflecting a 25% retracement from its massive post-IPO peak of $225.

A historic public debut initially assigned SpaceX a peak market capitalization of $1.77 trillion, fueled by unshakeable investor confidence in a perceived orbital monopoly. Equity markets are now aggressively digesting a structural shift in the core narrative.

Get SpaceX alerts:

The Unproven AI Pivot Burns SpaceX CashSpaceX Today

$157.17 +1.06 (+0.68%)

As of 10:27 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$147.11▼

$225.64Price Target$212.67

SpaceX management is rapidly mutating SpaceX from a pure-play aerospace sector titan into a sprawling, capital-intensive technology sector conglomerate. By diverting massive capital expenditures toward artificial intelligence (AI) data centers and using SpaceX equity to fund multibillion-dollar software acquisitions, leadership fundamentally alters SpaceX's risk profile.

The premium valuation previously awarded for orbital dominance is fracturing under the weight of escalating cash burn, macroeconomic headwinds, and a total reliance on a single, margin-compressed satellite unit.

Black Hole Balance Sheet: The AI Cash DrainSpaceX's post-IPO price action illustrates a textbook repricing of capital allocation risks. Days after raising $75 billion in the public markets, SpaceX executed a $60 billion all-stock acquisition of Anysphere, the developer of the coding platform Cursor.

For investors, SpaceX's strategic decision to use inflated equity as currency to acquire a terrestrial software entity will result in an immediate 3.4% equity dilution for SpaceX shareholders. Expanding the SpaceX share count to fund non-core software operations immediately ahead of impending lock-up expirations actively destroys shareholder value.

This aggressive pivot toward artificial intelligence infrastructure requires intense upfront capital expenditures. Developing data centers creates a severe cash drain that directly cannibalizes liquidity needed for SpaceX's core orbital logistics.

A recently signed $6.3 billion agreement for computing power with open-source startup Reflection AI highlights this shift. While the deal guarantees SpaceX $150 million in monthly recurring revenue starting July 1, 2026, the agreement requires granting Reflection AI access to NVIDIA Corp. NASDAQ: NVDA GB300 infrastructure at the SpaceX Colossus 2 data center. Building and maintaining outsized data centers to support external artificial intelligence clients strips resources away from core SpaceX launch vehicle development.

Colliding Orbits: The Tesla Merger ThreatInstitutional options positioning indicates the broader market is pricing in another major structural threat. Rumors suggest an impending, highly dilutive stock-swap merger involving Tesla Inc.'s NASDAQ: TSLA artificial intelligence and robotics divisions. The rumor hints at the absorption of Tesla's terrestrial electric vehicle operations and the consumer robotics segment, forcing a total re-rating of the SpaceX business model.

Aerospace investors typically pay a massive premium for pure-play monopolies. By blending aerospace logistics with auto manufacturing, artificial intelligence, robotics, and software development, SpaceX invites a massive conglomerate discount.

Complex, multi-industry holding companies historically trade at lower multiples than specialized peers because capital is routinely misallocated across underperforming divisions. SpaceX currently trades at roughly 29 times estimated 2027 sales and 71 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA). An EBITDA multiple of 71x requires absolute operational perfection. A conglomerate structure leaves SpaceX no room for operational friction.

Starlink Margins Fall Back to Earth FastA fundamental disconnect between the underlying launch segment and the profitable Starlink satellite unit presents immense systemic risk for SpaceX. Core launch operations function largely as a break-even entity designed to facilitate orbital deployment. SpaceX relies almost entirely on Starlink for positive free cash flow.

While Starlink subscriber counts continue to climb, aggressive expansion into emerging markets is driving persistent compression in average revenue per user.

Average revenue per user dropped from $99 per month in 2023 to $66 per month in the first quarter of 2026. Launching and maintaining a low-earth-orbit satellite costs SpaceX the same regardless of whether the end-user pays high-tier enterprise rates in North America or heavily subsidized rates in emerging markets. Failing to stabilize these unit economics while simultaneously expanding massive data centers threatens the SpaceX balance sheet.

A $20 billion senior unsecured notes offering is currently underway, serving as a stark reminder of the required leverage SpaceX needs to operate. The bond market absorbed the debt comfortably due to investment-grade ratings from S&P Global and Moody's, allowing SpaceX to refinance legacy 12.5% junk bonds with manageable 4.58% debt. Equity investors are looking further down the road. Financial modeling from Oppenheimer projects SpaceX's net debt could balloon from roughly $13 billion to over $400 billion by 2031 to sustain continuous orbital deployment and massive data center builds.

SpaceX (SPCX) Price Chart for Wednesday, June, 24, 2026

Micro Float Meets Macro Gravity for SpaceXBroader macroeconomic mechanics are accelerating the SpaceX sell-off. A hawkish pivot at the recent Federal Reserve meeting under Chair Kevin Warsh has driven U.S. Treasury yields higher. Rising yields mechanically punish long-duration, high-multiple growth equities like SpaceX by heavily discounting future cash flows.

These macroeconomic headwinds are amplified by extreme artificial scarcity in the secondary market. Only 5% of SpaceX's outstanding shares are currently traded in the public float, creating severe supply-and-demand imbalances.

This microscopic float generated record-breaking derivatives volume, with 1.8 million single-name options contracts exchanging hands for $2.8 billion in premium during the first trading session alone. Heavy institutional anchoring at the $200 strike currently acts as a defensive ceiling for SpaceX. Asset managers are heavily capitalizing on this downward momentum, launching inverse products like the Leverage Shares 2x Short SPCX Daily ETF NYSEARCA: SSPC to directly fade the SpaceX premium multiple.

Safe Landings in the Commercial Space SectorThe commercial space sector maintains strong secular tailwinds, driven by sustained government defense spending and private infrastructure demand. SpaceX simply features an equity valuation that severely misprices its impending capital expenditure trajectory and upcoming equity dilution.

Investors may want to consider rotating capital from premium-priced megacaps with unproven AI ventures into fundamentally sound aerospace pure-plays. Risk-averse market participants may favor a space-focused ETF such as the Procure Space ETF NASDAQ: UFO. For SpaceX, higher-risk investors should await the late 2026 lock-up expirations to allow improved float liquidity before establishing long-term positions.

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

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