Cerebras (CBRS), one of 2026's hottest AI IPOs, is down 52%, even though its first-day close was 68% above the IPO price. After the stock sold off below its IPO price in May and June, it fell another 20% following its second-quarter report, as cloud revenue rose 281% while hardware sales dropped 23%, and reports emerged that OpenAI was running its newest model on Nvidia GPUs instead of Cerebras chips. OpenAI has committed up to $20 billion but had spent only $74 million through June, and that deal makes up most of Cerebras' $25.4 billion backlog. Of the 14 analysts covering the stock, none rates it a sell, and their median price target of $295 is about double the current price. The article argues that execution, meaning building data centers and securing power and chips to serve OpenAI, is the biggest challenge.
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