Cerebras Stock: Analysts Remain Bullish After Q1 Earnings

Back in May, AI chip maker Cerebras Systems listed on the Nasdaq in a blockbuster IPO. The listing saw high demand from investors, with the stock soaring 68%¹ on the first day of trading.

Since then, the chip stock has been volatile, as with minimal information on its revenue growth and profitability, investors have struggled to gauge what the company is really worth. However, we now have an earnings report from the chipmaker, so let's take a look to see if the numbers match the valuation.

Strong Growth in Q1

Cerebras' Q1 earnings², posted on June 23, showed strong growth. For the quarter ended March 31, core revenue amounted to $191.3 million, up 92% year-over-year, with core hardware revenue up 60% and core cloud and other services revenue up 167%. Core gross margin was 47% versus 42% a year earlier. Core net loss was $2.5 million.

During the quarter, the company announced a multi-year deal with OpenAI for 750MW of inference compute. This deal was valued at more than $20 billion. It also launched a multi-year partnership with Amazon to bring its inference chips to AWS. This will help with global distribution, enabling it to target startups, AI natives, and enterprises.

Q2 and Full-Year Guidance

Looking ahead, guidance was generally good, however, gross margin was a weak point. For Q2, the company expects core revenue of $194 million (the consensus forecast was $174 million³), up 88% year-over-year, with core gross margin in the range of 36% to 38%. Meanwhile, for fiscal 2026, it expects core revenue of $855 million to $865 million, up 69% year-over-year at the midpoint, and core gross margin in the range of 38% to 41%. On the earnings call, CFO Bob Komin said that this expected drop in margins was due to costs associated with renting third-party capacity.  

Wall Street Remains Bullish on CBRS

Looking at this guidance, the chip stock is still very expensive despite its recent pullback. Taking the full-year revenue guidance (at the midpoint), we get a price-to-sales ratio of around 50 at the company's current market cap of $45 billion⁴.

That said, Wall Street analysts remain bullish on the stock. For example, analysts at Mizuho, Rosenblatt, and Needham all have $300⁵ price targets on the name.

Given this bullish sentiment, Cerebras could be a stock to keep an eye on. With revenues rising rapidly, there could be upside ahead.

Footnotes:

¹CNBC, Cerebras stock falls 10% in first full day of trading after blockbuster debut, as of May 15, 2026

²Cerebras, Cerebras Systems Announces Strong First Quarter 2026 Results, as of June 23, 2026

³Newsfile Refinitiv, as of June 23, 2026

⁴Google Finance, as of June 24, 2026

⁵Investing.com, Mizuho reiterates Cerebras Systems stock rating on OpenAI ramp, as of June 24, 2026