Cerebras Systems (CBRS) dropped 3.6% to $177.50 on Tuesday, even as the company announced a major new data center partnership in Finland. The stock is now down over 42% in the past 12 months and sits more than 15% below its 20-day moving average.
The Finland deal is with Compute Nordic Finland, and covers a new AI data center in Mikkeli. The facility will be built in phases, eventually reaching 165 MW of contracted IT capacity. Construction on the first 50 MW phase is already underway.
Each service order under the agreement carries a seven-year term, giving Cerebras long-term infrastructure to support its AI compute platform. The project is also expected to create jobs in the Mikkeli region.
The stock’s drop on positive news is not entirely surprising. The broader market was soft, with the Nasdaq (QQQ) down 1.5% and the S&P 500 off 0.76%. AI infrastructure names tend to move in step with growth sentiment.
Technically, CBRS is trading below both its 20-day SMA of $212.57 and its 50-day SMA of $203.90. The MACD is below its signal line with a negative histogram, pointing to fading buying pressure. Key support sits at $173.50, not far above the 52-week low of $160.81.
While the stock fell, Ark Invest was buying. On Aug. 25, Ark purchased 93,290 CBRS shares across multiple ETFs, worth around $17.2 million. That follows additional buying earlier in August.
Wood’s thesis centers on Cerebras’ position in AI inference. The company’s CS-4 system claims up to 30 times faster inference than GPU-based alternatives. Cerebras is also working with AMD on a disaggregated inference architecture offering up to five times higher throughput per watt in certain setups.
The company has partnerships with OpenAI, AWS, and AMD, and is building an inference cloud business alongside its hardware sales.
Cerebras reported Q2 revenue of $180.1 million, up 74% year-over-year. Core revenue reached $209.9 million, up 103% YOY. Cloud and services revenue surged 287% YOY to $127.7 million, with core gross margin improving to 41%.
Management raised full-year fiscal 2026 core revenue guidance to $880 million to $890 million. Q3 core revenue guidance came in at $214 million to $216 million.
The company ended Q2 with $8.6 billion in cash, restricted cash, and short-term investments, plus $25.4 billion in remaining performance obligations. It also has more than 600 MW of data center capacity live or under contract.
The valuation is not cheap. With a market cap of around $42.5 billion and annual sales of roughly $510 million, the price-to-sales ratio sits at 60 times. The company is still losing money on a GAAP basis.
Wall Street remains bullish despite that premium. Of 11 analysts, eight rate it “Strong Buy,” one “Moderate Buy,” and two “Hold.”
The average price target is $283.91. UBS holds a $330 target, Morgan Stanley raised its target to $279, and Wedbush lifted its target to $290.
The next earnings report is estimated for November 19, 2026, with analysts forecasting revenue of $214.90 million and an EPS loss of 14 cents.
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