By Adam Clark
Cerebras Systems shares have dropped sharply since the chip company's explosive initial public offering. Now analysts are arguing there could be an opportunity at a more reasonable price.
Cerebras shares were up 5.4% at $211.80 in premarket trading Monday, recovering after a 6.7% loss the previous week amid a broader semiconductor slump. However, it remains well below the levels of more than $300 which it reached immediately after its IPO last month.
But Wall Street is backing the company to make a comeback with a raft of initiation notes on Monday. Mizuho analyst Vijay Rakesh initiated coverage of the stock with an Outperform rating and a $300 target price. Wedbush's Matt Bryson started coverage with a $270 target price and a Buy rating.
Cerebras' unusually large artificial-intelligence chips excel at running models at speed, while also sidestepping some of the networking and packaging required for connecting thousands of high-end processors from Nvidia or other chip makers. That should see it carve out a growing niche for itself, according to the analysts.
"With the industry focused on inference to deliver Agentic AI solutions, we see Cerebras well-positioned as the industry leader in "fast inference," wrote Mizuho's Rakesh.
One reason for caution around Cerebras has been that the majority of its backlog of $24.6 billion, as it stood at the end of 2025, was a single cloud deal with OpenAI. However, it also has a deal with Amazon Web Services which could provide more confidence about a range of clients.
"With a differentiated architecture, a step-change in contracted revenue from OpenAI and AWS, and a market only now learning to pay for speed, we see an asymmetric, upside-skewed setup," wrote Wedbush's Bryson.
Bryson's $270 target price is based on a price-to-earnings multiple of 40 times his estimate for Cerebras' 2028 earnings, plus net cash.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 08, 2026 09:51 ET (13:51 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.