Cerebras Stock Rebounds on Analyst Upgrade After OpenAI-Related Selloff

Shares of Cerebras Systems rose in morning trading after an analyst upgrade provided a fresh catalyst for the AI chipmaker, helping the stock rebound from a multi-day decline that pushed it near its post-IPO lows.

Freedom Capital raised its rating on Cerebras to Buy from Hold, setting a price target of $209, according to a note published today. The firm argued that investors had overreacted to recent negative headlines, creating a buying opportunity.

Upgrade Follows NVIDIA-Driven Weakness

The stock's recent downturn was triggered by a report that OpenAI had chosen to run a version of its GPT-1 Sol model on NVIDIA GPUs instead of Cerebras hardware. This development concerned investors, given the strategic importance of the OpenAI relationship to Cerebras's revenue outlook.

However, Freedom Capital characterized the market's reaction as "disproportionate." The firm highlighted the company's fundamental strengths, including:

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• A substantial $25.4 billion backlog of remaining performance obligations.
• Ongoing strategic partnerships with other major tech players like AMD and Amazon Web Services.

Market Context and Performance

The upgrade provided a fundamental anchor for the stock as it traded just above its 52-week low of $160.81. The shares subsequently moved back toward the $172 level.

A supportive broader market environment also contributed to the gains. A risk-on tone across U.S. equities, with the tech-heavy NASDAQ Composite rising 1.7%, provided a tailwind for high-growth technology stocks. Still, the upgrade comes amid an ongoing debate over Cerebras's long-term competitive positioning against NVIDIA-backed AI inference solutions.