Cerebras Systems (CBRS) is poised to see further growth as it adds data center capacity, expands new inference products with AMD (AMD) and Amazon (AMZN) Web Services, as well as gains more hyperscaler business, Morgan Stanley said in a note Thursday.

The company expects core revenue to more than triple in 2027, the analysts said. This comes as demand for fast AI inference continues to run above available supply. The analysts said the company already secured more than 600 megawatts of capacity through the end of 2027, but bringing that capacity online remains a key execution risk.

New inference systems that combine Cerebras technology with AMD and AWS hardware could raise output, lower costs and create further upside for both revenue and margins if adoption grows, Morgan Stanley said.

Analysts raised their 2026 core revenue forecast to $886 million from $863 million, while also increasing their earnings and margin forecasts, according to the note.

Morgan Stanley kept its overweight rating for Cerebras and raised its price target to $279 from $273.

Price: 225.07, Change: -36.99, Percent Change: -14.12