Cerebras Systems (NASDAQ:CBRS) Shares Up 1.7% - Should You Buy?

Key Points

• CBRS shares rose 1.7% to $149.09 on above-average volume, but remain well below the 50-day moving average of $198.07.
• Cerebras reported 74.3% year-over-year revenue growth to $209.87 million and has a reported $25.4 billion backlog. Analysts maintain a “Moderate Buy” consensus with an average price target of $299.90.
• Risks include a significant quarterly earnings miss, continued losses, potential selling of up to 19.4 million additional shares, substantial insider selling, and growing competition from OpenAI-related rivals and Microsoft’s chip efforts.

Cerebras Systems Inc. (NASDAQ:CBRS - Get Free Report) shot up 1.7% on Tuesday. The stock traded as high as $150.00 and last traded at $149.09. 8,026,610 shares changed hands during trading, an increase of 9% from the average daily volume of 7,384,541 shares. The stock had previously closed at $146.62.

Key Headlines Impacting Cerebras Systems

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: A Wall Street analyst reportedly believes Cerebras could potentially double in value, citing its proprietary wafer-scale AI systems and long-term growth opportunity despite the stock’s significant decline from its IPO peak. Cerebras Systems Cratered by 20% This Year: It’s Going to Double in Price According to This Respected Wall Street Analyst
• Positive Sentiment: Cerebras has a reported $25.4 billion backlog, giving investors visibility into potential future revenue. The key question is whether the company can convert that backlog into profitable, high-margin growth. Can Cerebras Turn Its $25.4B Backlog Into High-Margin Growth?
• Positive Sentiment: Cerebras has generated more revenue than SoundHound AI over the past two years, with revenue trending upward, although its quarterly growth has been less consistent. Cerebras Systems vs. SoundHound AI
• Neutral Sentiment: Investors are comparing Cerebras’ rapid revenue growth and AI infrastructure opportunity with BigBear.ai’s longer-term government and defense contracts, highlighting both the company’s growth potential and execution risk. Better Artificial Intelligence Stock for 2026: BigBear.ai vs. Cerebras Systems
• Negative Sentiment: Up to 19.4 million additional shares may become eligible for sale under Cerebras’ IPO lock-up schedule. The potential increase in share supply could create selling pressure after the stock reached a record low. Cerebras Stock Braces for 19.4 Million-Share Unlock
• Negative Sentiment: Reports that OpenAI assigned a marquee workload to a rival and that Microsoft is advancing its own chip efforts have raised concerns about competition and customer concentration. Insiders have also sold substantial amounts of stock. Cerebras Stock Falls to 52-Week Low on OpenAI Report, Microsoft Chip News
• Negative Sentiment: A discounted-cash-flow analysis suggested CBRS remained overvalued even after falling sharply, while its recent record low underscores continuing investor concern about valuation and execution. DCF Model Suggests Cerebras Stock Is Still Overvalued

Analyst Ratings Changes

A number of analysts recently issued reports on CBRS shares. Jefferies Financial Group upgraded Cerebras Systems to an "outperform" rating in a research report on Monday, October 5th. Citigroup cut their price objective on shares of Cerebras Systems from $340.00 to $320.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Freedom Capital raised shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 2nd. Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $299.90.

Cerebras Systems Price Performance

The company has a market cap of $35.42 billion and a PE ratio of -1,863.62. The company has a fifty day moving average price of $198.07. The company has a quick ratio of 5.80, a current ratio of 5.82 and a debt-to-equity ratio of 0.02.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The firm had revenue of $209.87 million for the quarter. The business's quarterly revenue was up 74.3% compared to the same quarter last year. On average, sell-side analysts expect that Cerebras Systems Inc. will post -0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Steven Vassallo sold 50,000 shares of Cerebras Systems stock in a transaction on Friday, September 4th. The stock was sold at an average price of $210.30, for a total value of $10,515,000.00. Following the transaction, the director directly owned 171,977 shares in the company, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Robert Patrick Jr. Komin sold 32,500 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares of the company's stock, valued at approximately $6,242,265.10. This trade represents a 51.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

A number of large investors have recently modified their holdings of the business. Wealth Enhancement Trust Services Inc. acquired a new stake in shares of Cerebras Systems during the third quarter worth $26,000. GK Wealth Management LLC purchased a new position in Cerebras Systems in the 3rd quarter worth $31,000. Silicon Valley Capital Partners purchased a new position in Cerebras Systems in the 2nd quarter worth $44,000. CoreCap Advisors LLC acquired a new stake in Cerebras Systems during the 3rd quarter worth about $52,000. Finally, Rye Brook Capital LLC lifted its position in Cerebras Systems by 11.6% during the 3rd quarter. Rye Brook Capital LLC now owns 6,289 shares of the company's stock worth $1,117,000 after acquiring an additional 655 shares during the period.

About Cerebras Systems

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

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