Mizuho and UBS both see the post-earnings sell-off in Cerebras as a buying opportunity, despite taking different approaches to their price targets.
- Mizuho lowered its price target to $300 from $310 but maintained an ‘Outperform’ rating and said it was a “buyer of the stock” following the decline.
- UBS raised its Cerebras price target to $330 and called the post-earnings pullback a “compelling buying opportunity.”
- Analysts are focused on Cerebras’ fast inference demand, improving margins and planned capacity expansion.
Shares of Cerebras Systems (CBRS) tanked in morning trade on Thursday after the company delivered mixed second-quarter results, leaving Wall Street split on its long-term outlook.
Both Mizuho and UBS said they see a buying opportunity amid the sell-off, even as one lowered its price target on the shares while the other increased it.
CBRS stock plummeted around 10% and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the company jumped to ‘extremely bullish’ from ‘neutral’ over the past day, while chatter rose to ‘extremely high’ from ‘low’ levels.
Is CBRS Sell-Off A Buying Opportunity?
Mizuho lowered its price target to $300 from $310, but kept an ‘Outperform’ rating on the stock, according to a note to investors cited by TheFly. The firm said it was a “buyer of the stock” on the post-earnings sell-off.
UBS echoed the sentiment, viewing the pullback as a “compelling buying opportunity.” It cited strong disaggregated inference momentum, improving margins, new platforms, and the potential for up to four times more capacity next year.
Analysts See Strong AI Inference Demand
Citi also maintained a ‘Buy’ rating while lowering its price target to $320 from $340 on CBRS shares. Analyst Atif Malik said Cerebras is seeing strong demand for fast inference, a key area of growth for the company as AI workloads increasingly shift from model training toward inference.
Meanwhile, Morgan Stanley raised its price target to $279 from $273 and maintained an ‘Overweight’ rating. The firm said Cerebras’ second-quarter results beat across core revenue and margins and noted that fiscal 2026 guidance moved higher.
Morgan Stanley also highlighted the company’s expectation for more than three times core revenue growth in fiscal 2027, saying the analyst came away from the earnings report “more constructive.”
Cerebras Raises 2026 Revenue Guidance
Cerebras reported adjusted loss per share of $0.05, beating Wall Street’s estimates of a $0.18 loss per share cited by Koyfin. Revenue came in at $209.9 million, ahead of the $108 million consensus estimate.
However, it raised its full-year 2026 revenue outlook to $880 million to $890 million, above its previous forecast of $855 million to $865 million. The company also expects third-quarter core revenue of $214 million to $216 million, ahead of the roughly $212 million consensus.
Cerebras, often viewed as a challenger to Nvidia (NVDA), uses its Wafer-Scale Engine technology to keep an entire 300-millimeter silicon wafer intact as a single processor. The architecture is designed to deliver high computing performance and memory bandwidth for AI workloads.
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