Cerebras rose about 2 percent today, continuing a steady climb that has seen the stock gain more than 20 percent over the last month. We think this is mostly ordinary movement ahead of next week's earnings, as the whole chip sector was up today and there was no new company news.
Our view
The massive $24 billion order backlog is the most important number here because it proves there is real demand for these giant AI chips. If you already own the stock, there is nothing to do but sit tight and see if next week's results show they are turning those orders into revenue.
Pipeline expansions reflect growing energy needs for AI
Several energy companies are expanding their natural gas pipelines to keep up with the massive power needs of new data centers. Cerebras builds giant chips that require significant electricity to run, so the long-term growth of the business depends on the power grid's ability to support these facilities. While this specific pipeline news is about the energy sector, it shows that the infrastructure needed to support AI hardware is being built out. For a company like Cerebras that sells into these data centers, a more reliable energy supply is a necessary piece of the puzzle.
EarningsFor the record
Aug 5
Quarterly results expected on August 12
Cerebras Systems is scheduled to report its quarterly earnings on August 12. Analysts expect the company to report a loss of about 17 cents per share on revenue of roughly 190 million dollars.
This report will be a key test of whether the company is successfully converting its large order backlog into actual sales. Investors should watch for updates on the rollout of its giant AI chips and any progress in diversifying its customer base beyond a few major government contracts.
Partnership with Lovable to power AI software creation
Cerebras has entered a partnership with Lovable, a company that builds tools to help people create software using artificial intelligence. Lovable will use the Cerebras platform for inference, which is the process of running a finished AI model to generate results or code.
This deal is a positive sign that Cerebras is finding customers in the commercial software market. While the company is known for massive supercomputers, winning business from AI software platforms helps prove its hardware is useful for a wider range of high-speed computing tasks.
800 million dollar data center agreement with CleanCore
Cerebras has signed a 10-year agreement with CleanCore Solutions to provide AI services at a data center in Minnesota. The initial contract is worth about 800 million dollars, with the potential to reach over 3 billion dollars if renewal options are exercised.
This is a significant win that helps build out the company's infrastructure footprint. By securing long-term space and power for its chips, Cerebras can offer its computing power to more customers as a service, which is a key part of its plan to grow beyond one-off hardware sales.
Partnership with AMD to challenge Nvidia's AI lead
Cerebras is partnering with AMD to integrate its giant AI chips into AMD's new server systems. These systems are designed to improve inference speed, which is how fast an AI can process a request and give an answer.
This is a strategic move that gives Cerebras access to more data centers through AMD's established sales channels. By combining their technologies, the two companies are positioning themselves as a faster alternative to Nvidia, the current leader in the AI chip market.
Analysts recently issued a flurry of positive updates, including several price target increases throughout June and July. All 6 analysts rate the stock a buy, with an average target price that suggests 32% upside from current levels.
Average target$298.50+32%vs $226.73 today
TodayAvg price
Low $273High $325
Strong Buy6 analysts
0Bearish
0Neutral
6Bullish
FirmRatingPrice TargetDate
Mizuho Securities
Outperform
$300→$310
7/27/2026
Wedbush
Outperform
$270→$280
6/24/2026
Rosenblatt Securities
Buy
$300
6/24/2026
UBS
Buy
$300→$320
6/24/2026
Morgan Stanley
Overweight
$250→$273
6/24/2026
Craig-Hallum
Buy
$325
6/8/2026
Wedbush
Outperform
$270
6/8/2026
Needham
Buy
$300
6/8/2026
UBS
Buy
$300
6/8/2026
Morgan Stanley
Overweight
$250
6/8/2026
Mizuho Securities
Outperform
$300
6/8/2026
Barclays
Overweight
$280
6/8/2026
Cerebras Systems earnings
In its first quarter as a public company, Cerebras cleared the bar easily with a significant beat on earnings. It suggests management is being conservative with its early targets.
Earnings history
EstimateBeatMiss
Cerebras Systems past earnings results
Expected
Actual
Surprise
EPS
$-0.16
$-0.04
+75.6%
Revenue
$181M
$191M
+5.6%
Key highlights
Cloud services revenue surging: Core cloud and other services revenue grew 167% to $79.8 million, showing that the company is successfully shifting toward selling access to its computing power rather than just the physical hardware. This segment now makes up 42% of total core revenue compared to just 30% a year ago.
Hardware sales showing momentum: Core hardware revenue rose 60% to $111.6 million, marking a second straight quarter of growth above the 50% target. This shows sustained demand for the company's wafer-scale systems, which are massive single-chip processors designed for complex AI work.
Major customer win secured: The company signed a multi-year deal with OpenAI for 750 megawatts of computing power valued at more than $20 billion. This agreement provides a massive long-term revenue backlog, though it may keep the company's reliance on a single large customer high for several years.
Massive capital injection complete: Cerebras ended the quarter with $3.3 billion in cash and investments after raising $6.4 billion in its IPO and securing a $1 billion loan from OpenAI. This gives the business a large cushion to fund expensive data center acquisitions and research as it tries to reach profitability.
Annual revenue outlook raised: Management expects full year core revenue between $855.0 million and $865.0 million, which would be 69% growth at the midpoint. This forecast is a primary indicator of health, as it shows the company expects to maintain its fast expansion even as it deals with lower predicted profit margins in the coming quarter.
Our take: A very strong quarter that proves Cerebras can sell more than just hardware. The massive $20 billion OpenAI deal and triple-digit cloud growth change the story from a hardware maker to a major AI infrastructure power. While profit margins are still in the early stages, the scale of recent wins significantly strengthens the long-term case.
Cerebras Systems’s next earnings date
Q2 2026
AUG
12
Expectation
EPS
$-0.17
Revenue
$191M
Metrics we are tracking
Metric
Expectations
Status
Hardware Revenue Growth
Sustaining above 50% year-over-year for four consecutive quarters
60% YoY in Q1 2026
Adjusted EBITDA Margin
Reaching and staying above 10% on a quarterly basis
6.6% in Q1 2026
Cloud Services Revenue
Growing to represent at least 30% of total revenue mix
42% of mix in Q1 2026
Customer Concentration
Reducing the top customer's share of revenue below 40%
~50% from G42 in FY2025
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