Cerebras Systems (NASDAQ:CBRS) Stock Price Up 1.7% – Should You Buy?

Cerebras Systems Inc. (NASDAQ:CBRS) shot up 1.7% during trading on Tuesday. The stock traded as high as $150.00 and last traded at $149.09. Approximately 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.

More Cerebras Systems News

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

Analysts Set New Price Targets

A number of research firms recently issued reports on CBRS. Morgan Stanley boosted their target price on shares of Cerebras Systems from $273.00 to $279.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Jefferies Financial Group raised Cerebras Systems to an “outperform” rating in a research report on Monday, October 5th. Weiss Ratings lowered Cerebras Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Friday, September 25th. UBS Group boosted their price objective on Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Finally, Wedbush upped their target price on Cerebras Systems from $280.00 to $290.00 and gave the stock an “outperform” rating in a research note on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $299.90.

Cerebras Systems Trading Up 1.7%

The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02. The business has a fifty day simple moving average of $198.07. The company has a market capitalization of $35.42 billion and a P/E ratio of -1,863.62.

Cerebras Systems (NASDAQ:CBRS) last posted its quarterly earnings data on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. The company’s revenue was up 74.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In other news, CTO Sean Lie sold 120,000 shares of the company’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $208.97, for a total transaction of $25,076,400.00. Following the completion of the sale, the chief technology officer owned 309,569 shares of the company’s stock, valued at $64,690,633.93. This represents a 27.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert Patrick Jr. Komin sold 32,500 shares of the stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the completion of the sale, the chief financial officer owned 30,670 shares of the company’s stock, valued at approximately $6,242,265.10. The trade was a 51.45% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,864,452 shares of company stock valued at $387,680,754.

Institutional Trading of Cerebras Systems

Hedge funds have recently made changes to their positions in the company. Value Aligned Research Advisors LLC acquired a new stake in shares of Cerebras Systems during the 2nd quarter worth approximately $241,934,000. Wellington Management Group LLP acquired a new position in Cerebras Systems in the second quarter valued at approximately $194,853,000. State Street Corp purchased a new position in Cerebras Systems in the second quarter worth approximately $105,343,000. Dragoneer Investment Group LLC purchased a new position in Cerebras Systems in the second quarter worth approximately $88,400,000. Finally, Montanova Capital LLC acquired a new stake in Cerebras Systems during the second quarter worth $37,990,000.

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.