Cerebras (CBRS) shares rose 10% and Oracle (ORCL) rose 4% on Oct. 27 after Oracle said it will offer Cerebras' AI inference on Oracle Cloud Infrastructure from calendar 2027, alongside other chip deals. The deal gives Cerebras a sales channel beyond OpenAI, which has committed to 750 megawatts of inference capacity, while Cerebras cites $25.4 billion in contracted revenue not yet recognized, a significant part of it from OpenAI. Neither company disclosed the deal's value, and analysts' $2.95 billion 2027 revenue estimate dates from Oct. 19, before the announcement. After the jump, the stock trades at about 20x forward sales, well below its 37x average since listing and still under its $185 IPO price.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CBRSORCLsemiconductorsartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.94 |
| Change that session | +0.90% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- It’s Been All Downhill Since Cerebras Systems May IPO: 180% Gains Await According to This Wall Street Analyst
Cerebras Systems (CBRS) trades at $117.98, down 62.07% from its $311.07 debut, while the consensus target of 11 analysts is $282.55, implying 139.5% upside. The latest drop followed a SemiAnalysis report that OpenAI may use NVIDIA GPUs instead of Cerebras hardware for its “Ultrafast” mode, and 19.4 million shares became eligible for trading after lock-ups expired. Q2 GAAP revenue of $180.11 million missed the $193.55 million consensus, and GAAP EPS of -$2.98 reflected $377.0 million in stock-based compensation. The company cites $25.4 billion in remaining performance obligations and plans to more than triple core revenue in 2027, but the backlog depends heavily on OpenAI. The highest target, UBS’s $330.00, implies about 179.7% upside.
- Can Cerebras (CBRS) Turn Its $25.4B Backlog Into High-Margin Growth?
Cerebras (NASDAQ:CBRS) holds $25.4 billion in contracted future revenue, yet its shares fell to a post-IPO low amid worries about Nvidia competition and early insider shares coming out of lockup. Second-quarter core revenue rose 103% to $209.9 million, while GAAP revenue rose 74% to $180.1 million. GAAP cloud and services revenue jumped 281% to $126.0 million, while GAAP hardware revenue fell to $54.1 million from $70.3 million. Management raised its full-year core revenue outlook to $880 million to $890 million and reported a core gross margin of 40.6%. The article warns that significant customers including OpenAI, G42, Mohamed bin Zayed University of AI and AWS mean one purchasing decision could significantly affect the thesis.
- 5 Undervalued AI Stocks According to the Media
The article presents views from Brad Gerstner of Altimeter Capital and HSBC's Willem Sels that the market may be underestimating the AI boom, citing limits on chip production and power supply. It ranks five AI stocks that finance sites have called undervalued, based on how often each was cited across at least 13 finance sites. Oracle trades at 15.9 times forward non-GAAP earnings, 28% below its five-year average, with revenue expected to rise about 34% in fiscal 2027; risks cited include heavy data center spending, negative free cash flow and rising debt. TSMC trades at 21 times forward earnings, and 20 of 21 analysts rate it Buy. Microsoft trades at 27 times forward earnings, 11% below its five-year average, with risks including slower cloud growth and competition from Amazon.
- Oracle vs. Palo Alto Networks: Which Tech Stock Is the Better Buy in 2026?
The article compares Oracle (ORCL) and Palo Alto Networks (PANW) on financial health, growth and valuation. Oracle's trailing revenue was nearly $72 billion, up about 22%, but its trailing free cash flow was negative $29 billion due to heavy data center spending. Palo Alto's fiscal 2026 revenue was roughly $11.5 billion, up about 25%, while net income was about $307 million. The author leans toward Oracle, citing demand that exceeds cloud compute supply and $664 billion in contracted revenue yet to be delivered; analysts expect Oracle's earnings to grow 23% annually versus 12% for Palo Alto, with forward earnings multiples of 15 and 94, respectively. The article also flags Oracle's high leverage as a risk if AI demand slows.
- Where Will Oracle Stock Be in 2029?
Oracle (NYSE:ORCL) stock has fallen 53% over the past year as the company borrows heavily to build out data center capacity for its large contract backlog. As of the end of fiscal Q1 2027 (ending Aug. 31, 2026), Oracle carried over $169 billion in debt against a $37 billion cash pile, while its remaining performance obligations reached $664 billion, up $209 billion year over year. Revenue rose 30% to $19.3 billion in the quarter, with cloud infrastructure revenue up 121% to $7.4 billion, and the company said the vast majority of contracts signed in the quarter used customer prepayments or bring-your-own-hardware models, easing balance-sheet strain. The article argues that if fiscal 2029 earnings reach $15.79 and the stock trades at 19 times earnings, the share price could reach $300, 129% above its current level.
- What Is Oracle’s (ORCL) Economic Moat, and Is It Widening or Narrowing?
Oracle (ORCL) closed at $129.59 on October 19 and is down 27% over six months. The article argues its database business has a durable moat, since migrating a production database is costly and slow, and the segment earns a 35.63% operating margin and 41.19% return on equity. Its computing capacity rental business is more exposed: customers can switch providers, it competes with three of the largest technology companies, and it requires heavy spending, with borrowings at 251.72% of equity. Revenue rose 29.60% in the latest quarter, while the stock trades at 17.76 times expected next-year earnings. The article frames the gap as either a market misjudgment of how much of the old moat carries into the new business, or a sign that the new business has no moat.
Related markets
Latest news
- Voters Just Made Microsoft's Data Centers More Valuable, a Wall Street Veteran Says
Microsoft closed at a record $555.80 on Nov. 4, up 6.68% and adding about $259 billion in market value, after midterm results in which voters rejected data center projects in all but one of 41 local measures. Investors expect limits on new construction to make existing capacity scarcer and more valuable, though Art Hogan of B. Riley notes that a slower build-out also means slower capital spending. In Texas, Democrat Gina Hinojosa defeated Governor Greg Abbott after calling for a halt to new data center approvals, and Goldman Sachs estimated that states likely to tighten rules account for about 45% of planned U.S. capacity. Microsoft reported $45.2 billion in capital expenditures and $18.6 billion in cash flow, unlike rival cloud giants that have turned cash-flow negative. The article warns that if the limits stick, slower spending could slow Azure's 48% growth.
- Banks are turning cautious on lending, according to the Fed. What it means for the economy
A new Federal Reserve survey, published Nov. 2, shows U.S. banks tightening lending standards in the third quarter, particularly for smaller businesses, riskier households and commercial property. The survey covered 61 domestic banks and 18 U.S. branches of foreign lenders. Banks tightened standards on premiums charged on riskier loans for firms of all sizes, as well as on nonbank financial firms such as private equity funds. For households, mortgage standards were broadly unchanged, while tighter rules for subprime loans contrasted with some easing for jumbo mortgages. The 10-year Treasury yield hit an intraday high of 5.349% on Oct. 5, its highest since April 2002, and a separate Fed survey found the share of families behind on loan payments reached almost 20% at the end of 2025, up from about 12% in 2022.
- Apple Stock Is Up 22%, but 1 Slowing Business Could Test That Valuation
Apple stock is up about 22% this year through Nov. 3, roughly double the S&P 500's 11% gain, pushing its valuation to about 38 times earnings. Services, the high-margin business that has helped justify that premium, grew 10% year over year in the fiscal fourth quarter, down from about 12%, and management expects 8% to 9% in fiscal 2027 Q1, citing licensing headwinds and currency shifts. Services carried a 76% gross margin and made up 40% of gross profit. Total revenue rose 15% in fiscal 2026 to a record $479 billion, and Apple expects the holiday quarter to be its best for revenue ever. If services growth falls short of the 8% to 9% forecast, the article argues the premium valuation could be harder to justify.
- Snap Tumbles 11% as User Growth Miss and Sluggish Ad Sales Overshadow Return to Profit; Pinterest Dips, Meta Holds Steady
Snap swung to a profit in Q3, with net income of $56 million against a $104 million net loss a year earlier, but its revenue of $1.72 billion came in slightly below the $1.73 billion consensus and daily active users of 495 million missed the 499 million estimate. Subscriptions drove growth: other revenue jumped 84% and paid subscribers passed 30 million, while advertising revenue rose only 4%. CEO Evan Spiegel said ad revenue growth “remains below our ambitions,” and the company tied a decline in brand advertising to lower consumer packaged goods spending. Starting with Q1 2027 results, Snap will make monthly active users its main audience metric; it reported 977 million MAUs in Q3, while North America daily active users fell 6% year over year. Shares fell 11% to $5.30 in morning trading, while Pinterest was down 0.5% and Meta up 0.2%.
- Nvidia Just Dipped Below $200 for the First Time Since August
Nvidia closed at $200.13 after an intraday low of $199.68, its first trade below $200 since August 3, even as the S&P 500 gained 1.58%. The stock fell 3.17% as Big Tech rallied on Democrats' midterm wins, with investors seeing possible limits on new data center construction as a risk to chip demand. Apple's $5.10 trillion market value passed Nvidia's, which had been the world's largest company a day earlier. The consensus price target of $327.14 implies about 63.5% upside, and Nvidia guided third-quarter revenue to $108.0 billion, plus or minus 2%, with results due November 17. The shares remain about 16.3% below their October 6 record close of $239.24.
- Vistra Cratered by 25% This Year: One Wall Street Team Says 110% Returns Ahead for Investors
Vistra trades at $120.24 after falling 13.86% in the latest session to a 52-week low of $117.28, and is down 25.13% this year. CEO Jim Burke said ERCOT wholesale prices near $30 per MWh are too low to support new plants, and CFO Kris Moldovan said 2027 adjusted EBITDA is trending toward the lower end of the $7.4 billion to $7.8 billion range. Second-quarter revenue of $4.02 billion missed consensus by 27.24%, partly due to a $472 million unrealized hedge loss. Hyperscaler deals still support the story: Meta signed 20-year PPAs for more than 2,600 MW at Vistra’s PJM nuclear sites, and AWS contracted up to 1,200 MW at Comanche Peak. Against a consensus target of $204.32 implying about 69.9% upside, BNP Paribas Exane’s Street-high target of $255.00 implies roughly 112% upside, while skeptics note hedge coverage falls to about 72% in 2028.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.