Key insights
- Cerebras Systems is set to report its first earnings post-IPO, with options pricing suggesting a potential 13% stock move. Despite recent volatility, analysts from Wedbush, UBS, and Morgan Stanley are bullish, citing strong AI chip demand and high-profile clients like OpenAI and Amazon. Consensus estimates project an adjusted loss per share but over 80% revenue growth, offering a key indicator of the company's performance in the booming AI sector.
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Cerebras Systems is set to report its first quarterly results as a public company after the closing bell Tuesday, with traders anticipating a big move in the AI chipmaker's stock.1
Based on current options pricing, Cerebras (CBRS) shares are seen swinging up to 13% in either direction by the end of the week. A move of that magnitude from Monday's close around $224 could see shares rise as high as $254, or drag them below $195.
Cerebras shares have lost more than a third of their value from last month's highs on their first day of trading, though they're still up more than 20% from their IPO price of $185, after a volatile few weeks.
Tuesday's report will offer investors their first look at Cerebras' financials since the chipmaker's market debut.
Since the chipmaker's debut last month, analysts at several firms have launched coverage with bullish ratings for the stock, including Wedbush, UBS, and Morgan Stanley, expecting Cerebras to benefit from booming demand for AI chips.
The analysts also pointed to Cerebras' agreements with the likes of OpenAI and Amazon (AMZN) as evidence of its ability to attract high-profile clients in the space. "In our view these large contracts are necessarily the best proof points as to the inherent value of Cerebras's technology," Wedbush wrote.
The Wedbush analysts have a $270 price target for the stock, compared to $300 from UBS, and $250 from Morgan Stanley. 234
Cerebras is seen reporting an adjusted loss of 16 cents per share on an over 80% year-over-year jump in first-quarter revenue to $183.26 million, according to Visible Alpha consensus estimates.