Cerebras Systems (NASDAQ:CBRS) Posts Quarterly Earnings Results

Cerebras Systems (NASDAQ:CBRS) posted its quarterly earnings results on Tuesday. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.10, Zacks reports.

Cerebras Systems Stock Performance

Shares of Cerebras Systems stock traded up $2.91 during trading hours on Tuesday, hitting $227.34. The company’s stock had a trading volume of 7,078,242 shares, compared to its average volume of 6,847,362. Cerebras Systems has a 12 month low of $196.73 and a 12 month high of $386.34.

More Cerebras Systems News

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Cerebras reported first-quarter revenue growth of about 92% to 94%, driven by strong enterprise demand for its AI chips, which supports the bull case that its AI infrastructure business is scaling quickly. Reuters article
• Positive Sentiment: The company’s first earnings release since its IPO was described as “strong,” and the results topped expectations on the bottom line, suggesting execution is holding up better than some traders feared. GlobeNewswire article
• Neutral Sentiment: Wedbush and other market watchers had viewed demand risk as relatively low ahead of the report, with investors mainly focused on whether management could execute against its own targets. Proactive Investors article
• Neutral Sentiment: Options traders and commentators had expected a large post-earnings move, reflecting elevated uncertainty and high expectations around the debut report. Investopedia article
• Negative Sentiment: A broader semiconductor sell-off and weak tech sentiment have been pressuring CBRS shares, limiting how much the earnings beat can help near term. Invezz article
• Negative Sentiment: Some investors remain skeptical of Cerebras’s valuation and post-IPO fundamentals, arguing the stock still looks expensive despite the growth. Seeking Alpha article

Wall Street Analyst Weigh In

CBRS has been the subject of a number of recent analyst reports. Citigroup began coverage on Cerebras Systems in a report on Monday, June 8th. They issued a “buy” rating and a $340.00 price objective for the company. Needham & Company LLC started coverage on Cerebras Systems in a report on Monday, June 8th. They set a “buy” rating and a $300.00 target price on the stock. Wedbush began coverage on Cerebras Systems in a research report on Monday, June 8th. They set an “outperform” rating and a $270.00 target price for the company. Morgan Stanley assumed coverage on Cerebras Systems in a research note on Monday, June 8th. They issued an “overweight” rating and a $250.00 price target for the company. Finally, Rosenblatt Securities began coverage on shares of Cerebras Systems in a research report on Monday, June 8th. They issued a “buy” rating and a $300.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $294.00.

Cerebras Systems Company Profile

Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.

In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.