Cerebras Systems (NASDAQ:CBRS) Shares Up 2.3% – Still a Buy?

Cerebras Systems Inc. (NASDAQ:CBRS)’s share price was up 2.3% during mid-day trading on Thursday. The stock traded as high as $119.87 and last traded at $115.16. Approximately 10,062,985 shares were traded during trading, an increase of 30% from the average daily volume of 7,760,084 shares. The stock had previously closed at $112.56.

More Cerebras Systems News

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

• Positive Sentiment: Cerebras’ partnerships with Oracle Cloud Infrastructure and AWS are expanding access to its AI inference technology. The deals strengthen its position as an alternative to traditional GPU-based systems and could support future usage and revenue growth. Cerebras expands AI footprint with Oracle
• Neutral Sentiment: Intel’s latest results beat earnings expectations but included weaker guidance. The shortfall was tied primarily to soft PC demand rather than AI spending, making the read-through to Cerebras’ AI business limited, although it may still weigh on sentiment across semiconductor stocks. Why Cerebras Stock Dropped Today
• Neutral Sentiment: CTO Sean Lie sold 60,000 shares worth about $6.95 million, reducing his direct stake by 18.54%. Because the sale was conducted under a pre-arranged Rule 10b5-1 plan, it is a less concerning signal than discretionary insider selling, though the transaction may still attract investor attention. Cerebras CTO insider sale
• Negative Sentiment: Block & Leviton and Levi & Korsinsky announced investigations into possible securities-law violations, while Johnson Fistel is conducting a separate investigation following a short-seller report. These announcements increase legal and reputational risk and are likely contributing to selling pressure. Block and Leviton Cerebras investigation
• Negative Sentiment: Culper Research has questioned the expected lifespan and economics of Cerebras’ chips. The report adds uncertainty around product durability, long-term margins and the justification for CBRS’s valuation. In addition, a lockup expiration reportedly made approximately 19.4 million shares eligible for trading, increasing potential supply and selling pressure.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Rosenblatt Securities reiterated a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a research note on Wednesday, August 19th. Mizuho decreased their target price on Cerebras Systems from $310.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, August 13th. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price target on shares of Cerebras Systems in a report on Wednesday, August 19th. UBS Group lifted their price target on shares of Cerebras Systems from $320.00 to $330.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Finally, Wall Street Zen upgraded shares of Cerebras Systems from a “sell” rating to a “hold” rating in a research note on Saturday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Cerebras Systems has a consensus rating of “Moderate Buy” and an average target price of $289.90.

Cerebras Systems Stock Down 5.2%

The stock has a 50-day simple moving average of $168.82. The company has a market capitalization of $25.94 billion and a price-to-earnings ratio of -1,364.75. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.

Cerebras Systems (NASDAQ:CBRS) last released its earnings results on Wednesday, August 12th. The company reported ($2.98) EPS for the quarter, missing the consensus estimate of ($0.21) by ($2.77). The company had revenue of $209.87 million for the quarter. The business’s revenue for the quarter was up 74.3% on a year-over-year basis. As a group, analysts expect that Cerebras Systems Inc. will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling at Cerebras Systems

In related news, Director Steven Vassallo sold 50,000 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the completion of the sale, the director owned 171,977 shares in the company, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Andrew Feldman sold 237,559 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $199.27, for a total value of $47,338,381.93. Following the completion of the sale, the chief executive officer owned 16,853 shares of the company’s stock, valued at $3,358,297.31. This represents a 93.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,924,452 shares of company stock valued at $394,628,154 in the last three months.

Hedge Funds Weigh In On Cerebras Systems

Hedge funds have recently modified their holdings of the stock. Wealth Enhancement Trust Services Inc. acquired a new position in Cerebras Systems in the third quarter valued at about $26,000. Blue Bell Private Wealth Management LLC bought a new position in Cerebras Systems during the 3rd quarter worth about $31,000. GK Wealth Management LLC acquired a new stake in shares of Cerebras Systems in the 3rd quarter valued at about $31,000. Silicon Valley Capital Partners acquired a new stake in shares of Cerebras Systems in the 2nd quarter valued at about $44,000. Finally, Torren Management LLC bought a new stake in shares of Cerebras Systems in the third quarter valued at about $39,000.

Cerebras Systems Company Profile

Cerebras Systems is a technology company that develops specialized computing systems for artificial intelligence and high-performance computing. Its core product is the Wafer-Scale Engine, a processor designed to provide large-scale computing capacity and high-speed data movement for training and running AI models.

The company offers integrated AI computing systems, including the Cerebras CS series, which combines its wafer-scale processors with supporting hardware and software. Cerebras also provides access to its technology through cloud-based services, enabling businesses, research organizations and other users to develop and deploy AI applications without operating the underlying systems themselves.

Founded in 2015 and headquartered in Sunnyvale, California, Cerebras serves customers in sectors such as technology, government, scientific research and other data-intensive industries.