Cerebras Systems Inc. operates as an artificial intelligence infrastructure company. It designs and manufactures an AI compute platform that comprises of proprietary systems and software that is delivered in racks for deployment in data centers up to supercomputer scale. The company's pioneering wafer-scale engine, a chip encompassing a silicon wafer, designed to enable higher performance and speeds than GPUs for the computational demands of inference, Generative AI, and other AI applications. Its customers include hyperscalers, foundation model labs, AI-native and digital-native businesses, enterprises, and leaders of Sovereign AI initiatives. The company has operations in the United States, Europe, the Middle East, Africa, and internationally. Cerebras Systems Inc. was founded in 2015 and is headquartered in Sunnyvale, California.
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Cerebras and NVIDIA Post Contrasting AI Compute Results
Cerebras Systems and NVIDIA delivered post-earnings reports showing two distinct AI compute visions. NVIDIA reported a $81.61 billion quarter powered by full-stack AI factories, with Data Center revenue of $75.246 billion up 92% year over year and networking growing 199%. Cerebras, fresh off its IPO, reported core revenue of $209.87 million, up 103%, though GAAP revenue of $180.11 million came in 6.95% shy of consensus, and its backlog sits at $25.4 billion in remaining performance obligations. NVIDIA guided Q2 FY27 revenue to $91.0 billion plus or minus 2%, excluding China Data Center compute, while Cerebras raised full-year 2026 core revenue guidance to $880 to $890 million and plans to triple revenue in 2027.
Cerebras Stock Down 40% From May High Yet Analysts See 57% Upside
Cerebras Systems shares have fallen 40.39% from their May high of $311.07 to $185.43 after second-quarter results missed estimates, but 10 of 11 analysts still rate the stock a Buy with a consensus target of $291.64 implying roughly 57% upside. Revenue of $180.11 million fell short of the $193.55 million estimate and GAAP EPS of negative $2.98 missed the consensus loss of $0.1801, while management guided third-quarter core operating margin to negative 25% to negative 23% from negative 16% in the second quarter. UBS analyst Timothy Arcuri holds a Street-high $330 target implying about 78% upside, citing the pending CS-4 wafer-scale platform launch, a $25.4 billion remaining performance obligations backlog anchored by a multi-year OpenAI agreement valued at more than $20 billion, and plans to more than triple revenue in 2027. Management raised full-year 2026 core revenue guidance to $880 to $890 million and flagged a disaggregated inference solution with AMD Helios deploying in the fourth quarter and an AWS Bedrock rollout scheduled for the first quarter of 2027. By comparison, NVIDIA is down 7.35% and AMD is down 9.73% over the same stretch, confirming the selloff was company-specific rather than sector-wide.
Cerebras Systems Revenue Surges 74.3% Yet Stock Tumbles 14%
Cerebras Systems shares tumbled about 14% in extended trading on August 12, 2026, even after the AI chipmaker's second-quarter revenue rose 74.3% year over year to $180.1 million and it raised full-year guidance for the second time since its May 2026 IPO. The revenue figure missed the $194.2 million analysts expected, according to LSEG, while the adjusted loss narrowed sharply to 5 cents a share, well inside the 17 cents modeled. CEO Andrew Feldman said AI demand is "through the roof," and the company lifted its full-year core revenue guidance to $880 million to $890 million, up from $855 million to $865 million, and raised its annual adjusted gross margin target to 41% to 43% from 38% to 41%. Hardware sales, including its core AI chips, declined to $54.1 million from $70.3 million a year earlier, meaning more growth now comes from renting back its own systems to cloud customers than from selling chips outright. Cerebras posted a GAAP net loss of $450.5 million for the quarter, compared with a $309.5 million profit a year earlier, though most of that swing came from $386.6 million in stock-based compensation costs. Morgan Stanley analysts said "execution remains the key debate" given the scale and speed of the capacity buildout required, and both Citi and Mizuho trimmed their price targets after the results. Cerebras and Advanced Micro Devices partnered in July 2026 to combine their chips in AMD's Helios AI systems, with Feldman saying the combined system delivers five times higher tokens per second per watt than competing setups.
Cerebras Systems unveiled a new rack-scale AI system called CS-4, which it says can run large models dramatically faster than traditional GPU infrastructure. The CS-4 combines three WSE-3 Turbo processors and is the first system built around the company's next-generation Nexus rack-scale architecture, delivering up to twice the performance of its CS-3 predecessor. On the GPT-OSS-120B model, CS-4 reportedly produced more than 4,400 tokens per second per user, which Cerebras says is as much as 30 times faster than GPU-based alternatives, with up to 10 times higher throughput per watt than CS-3. First shipments are expected this quarter. The launch comes as Cerebras' inference business accelerates, with second-quarter cloud and services revenue jumping 281% year over year to $126 million, while core total revenue reached $209.9 million, up 103%, and the company ended June with $25.4 billion in remaining performance obligations.
Advanced Micro Devices has completed a multi-tranche debt offering of almost $5 billion to fund its push into AI and data center markets. The new capital is tied to partnerships with Microsoft and Cerebras, along with launches like Instinct Coder and potential work with Google on custom AI hardware. The bond deal arrives during a mixed stretch for AMD shares, which have pulled back about 4% over the last day and are slightly down over the past month, yet still show an 8.2% 90-day share price return and a 190.8% one-year total shareholder return. A leading narrative values the stock at $907.32 per share versus the latest close at $484.39, framing AMD as materially undervalued, though the current P/E of 122.2x is more than double the US semiconductor industry average of 50.9x.
Cerebras Systems has introduced the CS-4, a new AI chip built on the Wafer Scale Engine 3 Turbo that it claims is the fastest AI accelerator available today. The CS-4 offers up to 30 times more speed and 10 times more throughput per watt compared to GPU-based solutions, and supports models with over 50 trillion parameters. Cerebras Systems last closed at $220.01, down 12.7%. In other trading, GRINM Semiconductor Materials rose 13.4% to CN¥49.48, while Shanghai Iluvatar CoreX Semiconductor fell 13.4% to HK$368.00.
US AI chip startup Cerebras Systems on the 18th unveiled the CS-4, a new server system designed to accelerate inference processing for AI chatbots. It is equipped with three of the company's large-scale chips and adopts its in-house Nexus architecture, enabling the replacement of chip-mounted modules. The chips are manufactured using Taiwan Semiconductor Manufacturing Company's 5-nanometer process, with product availability set to begin in the third quarter. The company says it has reduced the number of components by 50% compared with previous models, which will help speed up data center construction. CEO Andrew Feldman said the company plans to deliver a total of 600 megawatts of computing infrastructure to customers by the end of 2027, and that processing speed will quadruple and throughput will increase twentyfold between now and the end of 2027.
Former Bitcoin miners pivot to AI infrastructure with contracted backlogs
A growing number of former Bitcoin miners are repositioning themselves as AI and high-performance computing infrastructure providers, using their existing power assets and land holdings to compete for long-term, contracted revenue from hyperscalers and AI labs. Hut 8 disclosed a $26.6 billion contracted backlog alongside $7.5 billion in non-convertible, non-recourse debt financing, with projected average annual net operating income of $1.75 billion across 949 MW of contracted capacity. IREN Limited has secured over $2.8 billion in multi-year contracts with Microsoft and Nvidia, with 85% of 2026 annual recurring revenue already contracted as it targets a 5 GW capacity buildout by 2028. HIVE Digital Technologies announced a $350 million, five-year AI cloud services agreement through its BUZZ HPC unit, bringing total contracted AI annual recurring revenue above $100 million. Digi Power X is building toward a $140 million+ annualized contracted run rate by 2027, anchored by a $1.1 billion take-or-pay contract with Cerebras for 40 MW in Alabama, while Keel Infrastructure Corp controls 574 MW across four HPC-earmarked sites funded by $819 million in liquidity. Analysts are broadly constructive on the transition thesis, but consistently flag dilution risk, contract execution, and interest-rate sensitivity as the primary threats to current valuation multiples.
Cerebras Shares Surge 15% on Wedbush Note Tying It to OpenAI
Cerebras Systems shares surged roughly 15.3% in morning trading Monday after a Wedbush note tied the AI chip designer more tightly to OpenAI's newest inference tier. According to reporting on the note, Cerebras is serving as the exclusive compute backbone for OpenAI's newly launched GPT-5.6 Sol Ultrafast mode, a tier delivering up to 750 output tokens per second, roughly 14 times faster than standard processing, powered by the company's proprietary Wafer-Scale Engine. Wedbush also raised its price target on Cerebras to $290 from $280 last week. OpenAI has committed to purchasing 750 megawatts of computing capacity from Cerebras by 2028, which underpins the $25.4 billion in remaining performance obligations Cerebras reported at quarter-end. Intel is up about 1.4% Monday, while AMD is trading essentially flat to slightly lower. NVIDIA disclosed 214,776,632 Intel shares valued at $29,989,261,126, equal to 47.27% of its 13F portfolio, and SoftBank Group disclosed 86,956,522 shares valued at $12,141,739,167, equal to 66.81% of its 13F portfolio. AMD and Cerebras are combining AMD Helios racks for prefill with Cerebras CS systems for decode, a configuration that maintains Cerebras speed while increasing throughput by 5x, with availability in Q4 2026.
Nebius, CoreWeave Get Major AI Boost as Data Center Prices Keep Rising
Wedbush analyst Matt Bryson said recent earnings commentary from Nebius and CoreWeave points to favorable economics for AI infrastructure, with customers able to recover investments in AI servers within roughly three years or less. He estimates that demand for computing capacity continues to exceed available supply, supporting continued spending on training and inference capacity. Bryson also highlighted Cerebras, which is expanding its infrastructure plans for 2027 and working to secure additional wafer supply for its wafer-scale processors. The broader assessment suggests AI infrastructure investment may have more room to grow, with higher pricing and sustained demand providing support for companies adding capacity.
Digi Power X reports first AI revenue and positive adjusted EBITDA
Digi Power X reported second-quarter revenue of $6.6 million, including its first GPU bare-metal rental revenue of $1.1 million from about five weeks of operations at its Alabama facility. Adjusted EBITDA was $3.3 million, up $3.2 million from a year earlier, while net loss was $14.4 million due to $4.1 million in depreciation and $5.8 million in share-based compensation. Cash and cash equivalents stood at $142.4 million as of June 30, 2026, and approximately $150 million as of August 14, 2026, with no long-term debt. The company has deployed about $110 million in capital expenditures year-to-date for its Cerebras contract in Alabama, where Phase 1 of 15 megawatts is targeted for December 2026 and Phase 2 of 25 megawatts for March 2027. Management expects third-quarter revenue to increase by over 100% from the second quarter and is in advanced debt financing discussions with Goldman Sachs to mitigate shareholder dilution.
Cerebras Cloud Revenue Nearly Quadruples Amid AI Chip Expansion
Cerebras Systems reported its cloud revenue nearly quadrupled year-over-year in the second quarter of 2026, driven by rising demand for fast AI inference. The company is expanding its data center and manufacturing capacities significantly to scale operations further. Strategic partnerships with OpenAI, AMD, and AWS are positioning Cerebras as a key player in the disaggregated inference space. Cerebras Systems last closed at $231.01, down 11.8%, while Advanced Micro Devices closed unchanged at $483.01.
US stocks rallied on Thursday after a favorable producer price report eased inflation concerns and reduced expectations for a Federal Reserve rate hike in September. The S&P 500 rose 0.65%, the Dow Jones Industrial Average added 0.13%, and the Nasdaq 100 gained 1.15%. The July final-demand PPI was unchanged month-over-month and up 4.7% year-over-year, below market expectations, while core PPI rose 0.2% month-over-month, also weaker than forecast. However, US tech stocks were undercut by an -8% drop in Cisco Systems after disappointing guidance and a more than -12% decline in Cerebras Systems (CBRS) due to a decline in sales at its hardware business. Crude oil prices fell more than 2% amid no new military strikes in the Persian Gulf, and the 10-year Treasury yield dropped 4.4 basis points to 4.639%.
Cerebras Systems Q2 Loss Narrows, Cloud Revenues Surge 287%
Cerebras Systems reported a second-quarter 2026 loss of 4 cents per share, narrower than the Zacks Consensus Estimate and an 80.95% earnings surprise. Core revenues of $209.87 million rose 103% year over year and topped the consensus estimate by 8.09%, led by rapid adoption of fast inference services. Core cloud and other services revenues surged 287% year over year to $127.7 million, while remaining performance obligations reached $25.4 billion. The company signed new cloud-capacity agreements with AI coding companies Cognition and Lovable, and cited Block, Figma, AlphaSense and GSK among customers using fast inference for agentic workflows. For full-year 2026, management raised core revenue guidance to $880-$890 million and expects core revenues to more than triple in 2027.
Cerebras slumps as mixed quarterly results test AI growth narrative
Cerebras Systems slumped over 18% premarket on Thursday after it missed key estimates despite soaring cloud revenue, raising doubts about the ability of its AI chips to challenge Nvidia. The Sunnyvale, California-based company's cloud business roughly quadrupled to $126 million versus the year-ago quarter, but its hardware sales, including AI chips, declined to $54.1 million from $70.3 million a year ago. Second-quarter adjusted gross margin fell to 40.6% from 46.5% in the prior quarter, while revenue missed analysts' estimates despite a higher annual outlook. Citi and Mizuho cut their price targets slightly, and the median target as per estimates compiled by LSEG implied an upside of 15% from the previous close. Separately, shares of Cisco Systems fell over 6% as its outlook fell short of lofty expectations tied to its rise as a beneficiary of the AI data center buildout, with Cisco expecting $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.
Tapestry, Yeti, Cerebras among stocks moving premarket on earnings
Several companies saw significant premarket moves following their latest earnings reports. Tapestry dropped 7% after fiscal fourth-quarter revenue of $1.88 billion only slightly exceeded estimates, while Yeti slipped nearly 4% despite beating earnings expectations. Cerebras Systems tumbled nearly 18% after second-quarter revenue of $180 million missed the $194 million LSEG consensus, and StubHub lost almost 17% on weaker-than-expected adjusted gross margin. Birkenstock jumped 10% on better-than-expected quarterly results and raised full-year guidance, while EnerSys gained 13% after earnings and revenue topped Wall Street forecasts. Grocery Outlet rose 9% and Jack in the Box added more than 6% on earnings beats.
Fifth Heatwave Hits Europe, UK Risks Hottest Summer on Record
Europe is facing its fifth heatwave of this summer, expected to peak on Thursday, August 13, amid extreme weather that is straining public health systems and energy networks across the region, while the United Kingdom is on track for its hottest summer on record. The scorching conditions are driven by successive high-pressure systems, or heat domes, blanketing the region, and are also disrupting freight transport on some major rivers. In financial markets, global stocks climbed near record highs after US inflation data came in cooler than expected, easing concerns that the Federal Reserve would raise interest rates in the near term. The yen strengthened after the Japanese government signaled support for the Bank of Japan to raise rates sooner, with the next hike possibly coming in September or October. West Texas Intermediate crude traded around 83 dollars a barrel, snapping a six-day winning streak. On the geopolitical front, the administration of President Donald Trump is stepping up economic pressure on Iran, including successive rounds of additional economic sanctions and maritime interdiction measures aimed at curbing Iranian oil exports. The UK government is planning legislation to regulate the use of AI in gene synthesis, amid concerns that the absence of global oversight could allow malicious actors to use the technology to create synthetic DNA that might lead to the development of biological weapons. In tech stocks, Lenovo surged as much as 22 percent in Hong Kong to a record high after reporting quarterly revenue up 43 percent, beating market expectations on AI-related demand. In contrast, Cerebras fell in after-hours trading after hardware revenue declined, while Cisco slipped as analysts viewed the company's AI sales outlook as highly cautious. Another focus is US-Japan cooperation on developing rare earth deposits beneath the seabed near Minamitorishima Island, more than 1,000 miles southeast of Tokyo, with estimates suggesting the resources could meet industrial demand for centuries and help both countries build a complete rare earth supply chain, reducing reliance on China for strategically important minerals.
Cerebras shares plunge 16% in after-hours trading as second-quarter revenue misses estimates
Shares of U.S. AI semiconductor startup Cerebras Systems plunged about 16% in after-hours trading on the 12th after the U.S. stock market close. Investors were disappointed that second-quarter revenue fell short of market expectations. The stock had closed regular trading up 11.6%, and was up 15.5% since the start of the week. Second-quarter revenue rose 74.3% to 180.11 million dollars, below analyst estimates of 194.23 million dollars. Adjusted loss narrowed to 6.91 million dollars from a loss of 40.5 million dollars in the same period a year earlier. Cloud business revenue expanded to about four times the year-earlier level at 126 million dollars, while hardware revenue fell to 54.1 million dollars from 70.3 million dollars a year earlier. The company raised its 2026 adjusted revenue outlook to 880 million to 890 million dollars, up from its previous forecast of 855 million to 865 million dollars. It also raised its 2026 adjusted gross margin outlook to 41 to 43 percent, from its previous forecast of 38 to 41 percent.
Several companies saw notable after-hours stock moves following their latest earnings reports. Cerebras Systems tumbled 14% after second-quarter revenue of $180 million missed the $194 million LSEG consensus estimate. StubHub lost more than 15% as adjusted gross margin of 82.2% fell short of the 84.3% StreetAccount consensus, though it reaffirmed its full-year adjusted EBITDA outlook. Jack in the Box gained more than 1% after fiscal third-quarter earnings of 96 cents per share beat the 88-cent FactSet estimate, while Red Robin Gourmet Burgers rose nearly 2% on better-than-expected second-quarter results. Coherent slipped almost 3% despite first-quarter guidance above expectations, and Cisco Systems fell 3% after adjusted gross margin only narrowly beat estimates.
Cerebras raises annual targets on strong AI chip demand
Cerebras Systems raised its annual revenue and gross margin forecasts on Wednesday, buoyed by robust demand for its chips from companies ramping up data-center capacity to power AI services. The Sunnyvale, California-based company now expects 2026 adjusted revenue between $880 million and $890 million, up from its previous forecast of $855 million to $865 million, and annual adjusted gross margin of 41% to 43%, up from 38% to 41% projected earlier. Second-quarter sales rose 74.3% to $180.11 million, while adjusted loss narrowed to $6.91 million from $40.5 million a year ago. CEO Andrew Feldman said placing memory directly on the chip has lessened the impact of surging memory prices and positioned the company better to compete with Nvidia. Cerebras is racing to expand chip volumes to support a $20 billion multi-year agreement to provide AI compute to OpenAI, with core cloud and services revenue nearly quadrupling to $127.73 million in the second quarter.
Cerebras Q2 Earnings Preview: Kalshi Traders Bet on AMD, AWS, OpenAI Mentions
Cerebras Systems reports second-quarter earnings after the bell today, its second report as a public company, with analysts expecting a loss of roughly 17 cents per share and the company guiding to core revenue of about 194 million dollars, up 88% from a year ago. On prediction market Kalshi, traders are betting on which words CEO Andrew Feldman and his team will say on the call, with AMD leading at 96%, Disaggregated at 90%, and Helios at 89%, reflecting the July partnership with Advanced Micro Devices that splits AI inference. AWS and OpenAI both trade at 94%, with OpenAI holding a 750-megawatt, multi-billion-dollar inference agreement and AWS set to deploy Cerebras systems in its data centers with revenue expected in 2027. Europe sits at 86% as Cerebras targets 200 megawatts of capacity there by the end of 2027, while CrowdStrike trades at 76% and Falcon at 59% after CrowdStrike said in July it will use Cerebras inference for its Falcon AI Detection and Response product. Kimi is a coin flip at 49% as Cerebras serves Moonshot AI's trillion-parameter Kimi K2.6 model at 981 output tokens per second, and Flex trades at 47% as the manufacturing partner adding production lines in Milpitas, California with plans to increase CS-3 capacity roughly sevenfold through 2026. Customer Concentration trades at just 12%, suggesting traders expect the phrase that dogged the IPO roadshow to go unspoken, while the key investor question is whether the guided core gross margin decline to 36% to 38% from about 47% in the first quarter is temporary as Cerebras relies on costly third-party capacity.
Cathie Wood's Ark Invest Pours $36.9 Million Into SpaceX Amid Portfolio Rotation
Cathie Wood's Ark Invest purchased roughly $36.9 million of SpaceX shares across four funds last week, marking the largest single-company buy in the period. The firm also added about $13.2 million of CoreWeave, $13.1 million of Cerebras, and $17.6 million of Nvidia, while increasing crypto exposure with approximately $39 million of Circle and $17 million of Coinbase. On the selling side, Ark unloaded roughly $96 million of Roblox and about $21 million of Palantir, signaling a rotation away from some software winners toward space, AI infrastructure, and crypto. The SpaceX buying followed the company's first public earnings report, which showed revenue jumping 92% year over year to $7.8 billion.
Inflation data and AI infrastructure earnings set to test markets this week
Investors are bracing for a pivotal week as crucial inflation reports and earnings from AI infrastructure companies will gauge the trajectory of interest rates and the artificial intelligence build-out. The Consumer Price Index for July is expected to rise 0.2% month-on-month, with the core figure also seen increasing 0.2%, while the Producer Price Index is forecast to accelerate from the prior month. On the corporate side, cloud and chip firms Nebius Group, CoreWeave, and Cerebras Systems report results, offering a fresh vibe check on AI infrastructure sentiment amid divergent year-to-date performances ranging from a 122% gain for Nebius to a 35% loss for Cerebras. The week also brings renewed scrutiny over Federal Reserve independence after the White House revived efforts to remove Fed Governor Lisa Cook and a quip from White House National Economic Council Director Kevin Hassett, who said, 'Kevin Warsh and the president have a very close, long-term relationship from New York City, from Florida, and they talk about the economy all the time.'
Cerebras Systems positions as AI inference leader with single-silicon chip architecture
Cerebras Systems is emerging as a leader in AI inference, leveraging its single-silicon Wafer-Scale Engine to eliminate communication bottlenecks found in multi-GPU clusters. The company’s WSE-3 chip can deliver 1,800 tokens per second, making it well-suited for real-time voice, live translation, and multi-step agentic workflows. Cerebras has secured a multi-billion-dollar compute deal with OpenAI and a partnership with GlaxoSmithKline for drug research, alongside strategic ties with Amazon, Advanced Micro Devices, and CrowdStrike. Wall Street expects annual revenue to surge from roughly $850 million in 2026 to about $3 billion in 2027. Shares recently cleared the 50-day moving average for the first time, forming a bullish IPO U-Turn base.
Cathie Wood's Ark Invest Bought Cerebras Systems Stock After Shares Fell More Than 58% From IPO Pop
Cathie Wood's Ark Invest bought Cerebras Systems stock the same week the AI chip startup's shares fell more than 58% from their first-day IPO pop. Ark purchased 111,989 shares for $20.41 million after earnings, at an average price of $182.26 per share, following pre-earnings buys of 124,949 shares for $28.27 million. Mr. Market punished Cerebras by sending its shares to a new low of under $161 apiece after the company's fiscal first-quarter report showed 92% revenue growth but failed to meet lofty expectations. The stock has since recovered to almost $200, making Ark's post-earnings purchases appear wise. Cerebras specializes in wafer-scale engine technology for AI inference, which gives it a speed advantage, and the company recently announced partnerships with Amazon Web Services and OpenAI.
Bloomberg Intelligence Projects Inference Market Will Reach $1.3 Trillion by 2032
Bloomberg Intelligence projects the AI inference market will grow at a 32% annual compound rate through 2032, reaching $1.3 trillion, roughly double the $658 billion it forecasts for the AI training market over the same period. Nvidia has brought Groq and its SRAM-based language processing units into its fold, pairing them with its HBM-packaged GPUs to handle both the decode and pre-fill phases of inference. Advanced Micro Devices uses a chiplet design that allows its GPUs to be packaged with more memory, and it has secured large-scale inference deals with OpenAI, Meta Platforms, Microsoft, and Anthropic, while also partnering with Cerebras to incorporate its SRAM-based solution into AMD's Helios racks. Cerebras produces massive wafer-sized chips with embedded SRAM and is breaking into the mainstream with deals with OpenAI, while its partnership with AMD will help it adopt a lower-cost system. Broadcom helps hyperscalers turn custom AI chip designs into physical chips packaged with HBM, seeing this as a more than $100 billion business in fiscal 2027, and SK Hynix, the leader in HBM with a nearly 60% market share, recently signed a $500 billion deal with Nvidia.
AMD Launches Helios, Partners with OpenAI and Meta to Enter the Gigawatt-Scale AI Market
AMD has announced the launch of its next-generation AI infrastructure portfolio, with the rack-scale AMD Helios architecture as the core solution, which is now entering commercial production and will be deployed in gigawatt-scale data centers of leading global technology companies. Dr. Lisa Su, CEO of AMD, stated that AMD is committed to delivering open computing platforms that enhance performance and cost-effectiveness, helping customers scale AI infrastructure from data centers to edge devices. At this launch, AMD announced strategic partnerships with major players. Anthropic is set to deploy up to 2 gigawatts of AMD Instinct MI455X on the Helios platform and engage in a long-term collaboration to bring Claude models to ROCm software development. Meanwhile, OpenAI is advancing joint AI stack development using the Triton framework with ROCm to optimize GPT-class workloads on Helios, with installation expected to begin in the fourth quarter of 2026 and scaling rapidly through 2027. Meta is currently testing gigawatt-scale systems featuring both 6th Gen AMD EPYC processors and the Helios platform in preparation for broad deployment. Cerebras is combining its low-latency computing with Helios to boost performance and cost efficiency. On the hardware front, AMD introduced the 6th Gen AMD EPYC Venice processor and the AMD Instinct MI455X and MI430X accelerators. The Helios architecture delivers up to 30% better cost per unit compared to competitors, alongside the launch of the ROCm.ai developer platform. Additionally, AMD revealed a long-term roadmap extending to 2030, including EPYC processors on Zen 7 and Zen 8 architectures, Instinct MI500 and MI600 Series cards, and an entry into the Physical AI market with AMD Kria AI solutions for autonomous robotics, as well as collaborations with AT&T and Cisco in the enterprise sector.
AMD price target raised to $600 by Wedbush on strengthening AI outlook
Wedbush raised its price target on Advanced Micro Devices to $600 from $450 following the company's Advancing AI 2026 event, citing increased confidence in its data center AI growth trajectory. The analysts highlighted new partnerships with Microsoft and Anthropic, which they said provide greater confidence that AMD's data center AI silicon and systems revenue will substantially accelerate in the second half of 2026 and through 2027. Wedbush also noted improving supply conditions and increased its assumptions for AMD's data center CPU and GPU revenue growth in 2026 and 2027, lifting revenue and earnings expectations. The firm pointed to AMD's collaboration with Cerebras for ultra-low-latency AI inference and identified VAST Data as a potential beneficiary of AI infrastructure spending. AMD shares are up more than 150% this year, trading at $538 on Friday afternoon.
Cerebras Partners with AMD on Disaggregated AI Inference Platform
Cerebras Systems is expanding its AI infrastructure strategy through a technical partnership with Advanced Micro Devices to deliver a disaggregated AI inference platform optimized for both ultra-low latency and high throughput. The solution combines AMD's Helios rack-scale systems with Cerebras' Wafer-Scale Engine, allowing the two architectures to operate as a single inference workflow, with AMD Helios handling high-throughput prompt processing and large context windows while the Cerebras WSE accelerates token generation with ultra-low latency. The companies expect the combined platform to deliver up to five times higher tokens-per-second-per-watt than a Cerebras-only configuration, and Cerebras plans to deploy AMD Helios systems across its data centers with the joint offering becoming available through Cerebras Cloud in the second half of 2026. The partnership reinforces Cerebras' strategy of building workload-optimized AI infrastructure and complements previously announced disaggregated inference partnerships with OpenAI and Amazon Web Services, with the OpenAI agreement worth more than $20 billion and first-quarter 2026 revenues rising 94% year over year to $193.4 million. Cerebras faces stiff competition from CoreWeave and Broadcom in the AI infrastructure domain, while its shares have jumped 31.7% in the past month and the Zacks Consensus Estimate for 2026 loss is pegged at 89 cents per share.
Cerebras Systems and CrowdStrike Partner on AI Cybersecurity
Cerebras Systems and CrowdStrike have announced a partnership to integrate Cerebras AI accelerator hardware with the CrowdStrike Falcon AI cybersecurity platform. CrowdStrike will use Cerebras chips for its core security offering, while Cerebras will adopt Falcon AI to protect its own infrastructure. The collaboration targets real-time, AI-driven enterprise security workloads, with a focus on fast inference for threat detection. Cerebras Systems stock last closed at $220.0, up 21.9% over the past week but down 29.3% year to date.
Cerebras shares rise 15.1% since last earnings report
Cerebras shares have gained about 15.1% since its last earnings report, outperforming the S&P 500. The company reported a first-quarter 2026 loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 14 cents, while revenues rose 94% year over year to $193.4 million, beating estimates by 7.04%. Cerebras announced a multi-year deal with OpenAI valued at more than $20 billion for 750 megawatts of high-speed inference compute, and began a partnership with Amazon Web Services to expand cloud reach. For the second quarter, Cerebras expects core revenues of $194 million, implying 88% year-over-year growth, and for full-year 2026 it projects core revenues of $855 million to $865 million, a 69% surge at the midpoint.
Cerebras Systems trades at steep discount to estimated intrinsic value after manufacturing expansion
Cerebras Systems is trading at an 86.78% discount to its estimated intrinsic value following Flex Ltd.'s expansion of manufacturing for the CS-3 AI accelerator in Milpitas, California, which targets roughly seven times higher production capacity through 2026. The stock rebounded 17.92% in a single day to $208.57 but remains down 11.14% over the past 30 days and 32.95% year to date. A widely followed narrative pegs fair value at $415.54, implying a significant valuation gap that depends on aggressive growth and margin assumptions. However, risks include Cerebras Systems' reliance on OpenAI for a large portion of its $24.6 billion backlog and a sizable lock-up expiry in mid-November.
S&P 500 Futures Rise as Investors Weigh Inflation and Earnings
US stock futures pointed higher with S&P 500 contracts up about 0.5% and Nasdaq 100 futures up roughly 1.3% as investors balanced fresh inflation worries against easing rate fears abroad. The 10-year Treasury yield sat near 4.6% and markets saw roughly a 50 to 60% chance of a Federal Reserve rate hike in September. Rising oil prices kept inflation risks alive, putting energy producers and consumer-facing companies in focus. Among top movers, Nebius Group jumped 18.78% after Nvidia disclosed a 9.3% passive stake, Cerebras Systems surged 17.92%, and Bloom Energy climbed 14.82% after JPMorgan raised its price target. On the losing side, Boxabl declined 18.43%, Danaher fell 10.99% after issuing third-quarter revenue guidance of 2% to 3% growth, and MSCI dropped 10.14% after Morgan Stanley cut its price target to US$700 from US$727. Earnings from Alphabet, Tesla, Texas Instruments, AT&T, Verizon Communications, and American Express were set to dominate the next three sessions.
Nvidia, AMD, Micron, TSMC Shares Sink as China Unveils Powerful New AI Model
Artificial intelligence and semiconductor stocks traded lower before Friday's opening bell as weakness in Japan's technology sector and fresh competition from Chinese AI developers weighed on investor sentiment. Japan's Nikkei 225 dropped 4.03%, marking its steepest weekly decline since April 2025, while the broader Topix lost 2.72%. In U.S. premarket trading, Nvidia fell about 2%, Advanced Micro Devices and Cerebras each lost around 3%, while Micron Technology slipped nearly 2%. Western Digital and Seagate Technology declined about 3%, and Taiwan Semiconductor Manufacturing dropped nearly 4% despite reporting stronger-than-expected quarterly results a day earlier. Meanwhile, Alibaba-backed Moonshot AI introduced Kimi K3, a 2.8 trillion-parameter open-weight AI model designed to compete with leading U.S. systems, underscoring growing competition from Chinese AI developers.
Wall Street Sees 47% Upside for AI Chip IPO Cerebras Systems
Wall Street analysts expect shares of Cerebras Systems, which completed the year's biggest IPO as of May raising more than $5.5 billion, to jump 47% over the next 12 months from their July 15 trading level. The company designs a wafer-scale engine chip that is 58 times the size of an Nvidia B200 GPU and has more than 2,000 times the memory bandwidth of an Nvidia package, enabling inference up to 15 times faster than leading GPUs. Revenue climbed 92% in the latest quarter to more than $193 million, though the company remains unprofitable and relies on a limited number of customers, a risk highlighted in its prospectus. Aggressive investors may consider the stock for long-term AI growth, while cautious investors might favor established players like Nvidia or Advanced Micro Devices.
Advanced Micro Devices is positioned to be the biggest winner in the artificial intelligence inference market, according to an analysis comparing Nvidia, AMD, and Cerebras Systems. While Nvidia uses a combination of GPUs and LPUs with on-chip SRAM for inference, and Cerebras employs giant wafer-scale chips that are up to 15 times faster than Nvidia's GPUs, AMD's chiplet design and its acquisition of memory optimization software company MEXT offer a cost-effective solution that reduces reliance on expensive high-bandwidth memory. AMD is also set to benefit from the rise of agentic AI, which is expected to shift the GPU-to-CPU ratio in data centers from about 8 to 1 to around 1 to 1, playing to AMD's strength as a leading CPU maker. The company already has inference deals with OpenAI and Meta Platforms, with rumors that Anthropic may become a major customer, while Cerebras has secured a $20 billion deal with OpenAI and a partnership with Amazon Web Services. Nvidia remains attractively valued, but AMD's dual exposure to inference and agentic AI gives it explosive revenue growth potential.
Nvidia and Cerebras stocks slide from highs, presenting potential AI chip buying opportunities
Nvidia and Cerebras Systems have both seen their shares decline from recent highs, creating potential buying opportunities in the AI chip sector. Nvidia, which dominates the AI chip market, is trading at 23 times forward earnings estimates and plans to ship its Vera Rubin platform later this year, targeting a new $200 billion market for stand-alone CPUs. Cerebras, a newer player that went public in May in the biggest IPO of 2025, reported first-quarter revenue soaring 92% to $193 million and recently signed deals with OpenAI and Amazon's cloud unit. While Cerebras is not yet profitable and its stock has slid 30% from its first day of trading, Nvidia is considered the better discount AI buy for most investors due to its proven earnings growth and market position.
S&P 500 Futures Rise as Inflation Cools and Bank Earnings Loom
US stock futures pointed higher Monday morning, with E-mini S&P 500 contracts up about 0.4%, as investors weighed cooling inflation against uneven global growth. Softer price data in France, where inflation sits at 1.8%, suggested easing cost-of-living pressures that could reduce the need for further central bank rate hikes, while weaker industrial output in Italy and Turkey hinted at slowing factory activity. Among individual movers, Cerebras Systems jumped 8.34% after announcing expanded manufacturing and new European AI infrastructure capacity, Meta Platforms rose 5.97% on AI chip and cloud compute plans, and SBA Communications gained 4.14%. On the downside, Moderna fell 10.83% amid renewed political focus on vaccine skepticism, Okta declined 6.86%, and MongoDB dropped 5.73% despite recent analyst price target increases. Looking ahead, big bank earnings are set to dominate the narrative, with JPMorgan Chase, Wells Fargo, Citigroup, Goldman Sachs, and Bank of America reporting Tuesday, followed by BlackRock, PNC Financial, Bank of New York Mellon, Progressive, Elevance Health, J.B. Hunt, and United Airlines on Wednesday.
S&P 500 Futures Edge Higher as Elevated Yields and Consumer Credit Data Weigh
US stock futures are pointing slightly higher this morning, with S&P 500 contracts up about 0.2%, as investors weigh stubbornly high bond yields and softer signs from consumer borrowing. The US 10-year Treasury yield is holding near 4.6%, keeping talk of at least one more Federal Reserve rate hike alive, while US consumer credit in May slipped by about US$0.2 billion, hinting that households may be pulling back on new debt. Among top movers, Lumentum Holdings jumped 11.13% after CEO commentary highlighted business trends, Hewlett Packard Enterprise climbed 9.94% on plans to expand AI infrastructure, and Cerebras Systems gained 9.25% following announcements of expanded manufacturing and European AI data center capacity. On the downside, Costco Wholesale fell 4.21% after June sales details, Cincinnati Financial declined 3.38% following an analyst downgrade, and Alnylam Pharmaceuticals dropped 3.31%. Investors are also watching for Delta Air Lines' second-quarter results, the US June Monthly Budget Statement, India's June inflation rate, and Brazil's July business confidence reading.
Cerebras Stock Surges on European Data Center and CS-3 Manufacturing Expansion Plans
Cerebras Systems stock jumped 11% after the company announced plans to expand data center capacity in Europe and boost manufacturing of its CS-3 chip. The company aims to bring European data center capacity online before the end of 2026, with rapid expansion in France and Scandinavia, and targets total capacity of 200 megawatts by the end of 2027. Additionally, a collaboration with Flex will increase CS-3 production capacity by approximately 7 times by 2026 at Flex's California facility.