News about Cerebras Systems

Cerebras Systems (CBRS) shares fell 57.6% from August 4 to November 2, 2026, while the S&P 500 lost 2.3%. Contracted work still to be delivered stood at $25.4 billion at June 30, largely tied to OpenAI; the shares slid further after reports that Cerebras lost an OpenAI workload to Nvidia and after Culper Research disclosed a short position. In the second quarter, revenue reached $180 million, but the operating loss widened to $477 million and gross margin fell to 14.2%; on the company's core measure, revenue rose 103% to $209.9 million. Management guided core operating margin to minus 25% to minus 23% for the third quarter and raised its full-year core revenue outlook to $880 million to $890 million. Cash and short-term investments of $7.9 billion (against $1.5 billion of debt) equal about a third of the roughly $22 billion market value, and the shares have fallen 46% since September 30.

Cerebras Systems shares were down 9.2% as of 12:22 p.m. ET after the firm tempered expectations for the AI stock. UBS kept a positive rating but cut its price target about 24% to $250 from $330, citing OpenAI-related colocation demand, shipments of the CS-4 accelerator, and adoption through Amazon Web Services as factors that could lift the stock. Culper Research also announced a short position, alleging the company's wafers break down after only a couple of years of use. The article notes that analyst stances are opinions rather than guarantees and points to Cerebras's third-quarter results, expected on Nov. 12 after the market closes.

Cerebras Systems (CBRS) shares rose sharply on Tuesday, climbing as much as 11.2% intraday and closing up 10.1%, after the company announced its fast inference service would be available to Oracle Cloud Infrastructure (OCI) customers. Cerebras says its Wafer-Scale Engine packs 900,000 compute cores and is 58 times larger than Nvidia's Blackwell B200 chip, and that integrating compute and memory on one wafer reduces latency, a key issue for AI agent workflows. In the second quarter, its cloud revenue surged 287% to a record $128 million and total revenue rose 103% to $210 million, though losses continue to mount as it expands data center capacity. The article notes the technology is still finding its customer base and that Cerebras competes directly with Nvidia. At 39 times sales, the article says its valuation reflects considerable growth expectations.

Cerebras (CBRS) shares have fallen 52.87% from the $311.07 first-day close to $146.62, below the $185 IPO price, after a SemiAnalysis report said OpenAI will run its “Ultrafast” speed workload on NVIDIA GPUs instead of Cerebras hardware. Selling pressure grew as up to 19.4 million insider and employee shares unlocked and CEO Andrew Feldman and CTO Sean Lie sold over $240 million of Class A shares, while the August report showed GAAP revenue of $180.11M, below the $193.55M consensus. UBS's Timothy Arcuri keeps a Buy rating with a $330.00 target, citing core revenue growth of 103% to $209.87M and management's view that Q3 is the low point for core gross margin. The $291.64 consensus target from 11 analysts implies 98.9% upside, but the stock still trades at a forward P/E of 217.