Cerebras in focus as Wedbush cuts price target, still expects 'modest' beat and raise (CBRS:NASDAQ)

Wedbush maintains an Outperform rating on Cerebras Systems (CBRS) but cuts its price target to $190 from $290, citing broader sector valuation pullbacks. The firm expects another earnings beat and raised guidance, despite concerns about data center spending and chip longevity. Wedbush disputes these concerns, pointing to operational evidence and OpenAI's commitments.

Cerebras Systems (CBRS) shares fell 9.2% after UBS cut its price target by 24% to $250, citing tempered expectations. Despite the reduction, UBS maintains a buy rating, noting potential upside from OpenAI demand and AWS adoption. The stock has also faced criticism from Culper Research, which took a short position. Cerebras is set to report Q3 earnings on Nov. 12.

Cerebras Systems (CBRS) stock fell 8.3% to a 52-week low of $98.50 after UBS cut its price target to $250 from $330, citing reduced near-term conviction. The decline follows a short-seller report alleging chip degradation and upcoming share unlocks. The stock is down 70% from its high, but analysts maintain Buy ratings.

Cerebras Systems (CBRS) fell 5.77% after short seller Culper Research alleged its AI chips have a lifespan of 1.5 to 2.5 years and questioned its technology claims. Cerebras has not responded. The drop follows a lockup expiration and reverses part of a previous rally. The stock is far below its 52-week high of $386.34.

Cerebras Systems (CBRS) shares fell 4% after Culper Research published a short report questioning the longevity and technology of its AI chips, alleging a 1.5-2.5 year lifespan and reliance on outdated materials. Culper claims Cerebras uses dummy operations to prevent cooling, causing rapid degradation. Cerebras has not responded. (NYSE: CBRS)

Cerebras Systems (CBRS) shares rose 10% and Oracle (ORCL) gained 4% on Oct. 27 after Oracle announced plans to offer Cerebras' AI inference on its cloud starting in 2027. The deal aims to provide customers with more AI chip options. Analysts estimate Cerebras' 2027 revenue at $2.95 billion, though no deal value was disclosed. Cerebras trades at roughly half its average forward price/sales multiple since its IPO.