Cerebras Upgraded to Buy at Freedom Capital on Overdone OpenAI Fears

Shares of Cerebras Systems Inc. (NASDAQ:CBRS) gained in Friday trading after Freedom Capital upgraded the artificial intelligence chipmaker, characterizing a recent steep selloff as an exaggerated reaction to concerns over its partnership with OpenAI.

The Upgrade

Freedom Capital analyst Paul Meeks raised his rating on Cerebras to Buy from Hold, establishing a $209 price target. The upgrade provided a stabilizing catalyst for the stock, which rose nearly 2% in response. The move comes after a sharp retreat that pushed shares near their lowest levels since the company’s public market debut earlier in 2026.

Context for the Selloff

The upgrade directly addresses investor anxiety that drove a 17% decline in Cerebras shares this week. The selloff was triggered by reports that OpenAI is using Nvidia graphics processing units (GPUs) for an ultrafast variant of its GPT-1 Sol model, sparking questions about the long-term depth of Cerebras's relationship with the prominent AI lab.

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Meeks argued that "the market's punishment of these shares is exaggerated based on what we see as a minor threat even if proven true." He stated that in an environment where AI chip demand is expected to "overwhelm supply for years," Cerebras will continue to secure significant business.

Analyst's Thesis and Outlook

Freedom Capital's thesis centers on the structural shift toward AI inference, where Cerebras’s proprietary Wafer Scale Engine technology is believed to hold a performance advantage. The firm also noted the potential for hybrid deployments, where traditional GPUs handle initial tasks and Cerebras hardware executes the rapid output decode.

With the stock trading at $172.50, just above its post-IPO low of $169, Freedom Capital sees a favorable risk-reward profile. The firm's $209 price target is more conservative than the broader Wall Street consensus of $292, a deliberate choice to account for ongoing execution risks as Cerebras scales its manufacturing capacity to meet aggressive growth targets. Wall Street projections model Cerebras revenue expanding more than threefold to $2.95 billion by 2027 from an estimated $887 million in 2026.