TLDR
- Cerebras Systems (CBRS) stock rose 10% on Tuesday to close at $119.31 after announcing a deal with Oracle.
- Oracle Cloud Infrastructure will offer Cerebras’ wafer-scale systems starting in the first half of 2027.
- Oracle is the third major cloud provider to offer access to Cerebras’ chip, after AWS and Azure.
- CBRS hit a 52-week low of $106.13 on October 26 and is down 62% since its May debut.
- Analysts rate the stock a Strong Buy, with an average price target of $288.67.
Cerebras Systems (CBRS) stock closed at $119.31 on Tuesday, up $10.94 or 10%. The day’s range ran from $108.88 to $120.50.
The AI chipmaker rallied after announcing a deal with Oracle (ORCL). Oracle stock also rose, gaining about 3.5%.
CBRS slipped about 0.6% in premarket trading on Wednesday. That left the stock little changed after Tuesday’s big move.
Oracle Cloud Infrastructure will offer Cerebras’ fast inference service to its customers. That includes AI labs, enterprises and developers building interactive apps.
The service is expected to launch in the first half of 2027. It will sit alongside Oracle’s existing AI services, including Dedicated AI Clusters.
What the Oracle Deal Brings
Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, called it “another ultrafast and deterministic option to our broad compute portfolio.” Oracle joins AWS and Azure as the third major cloud provider to offer access.
Cerebras says its Wafer-Scale Engine is 58 times larger than Nvidia’s Blackwell B200 chip. It has 900,000 compute cores, according to a regulatory filing.
The company says keeping compute and memory on one chip cuts data movement. That should speed up AI agents, which run many steps in a row.
Oracle plans capital spending of $90 billion to $95 billion in fiscal 2027. Launch delays and the revenue the deal brings in remain open risks.
A Rough Stretch for the Stock
CBRS hit its 52-week low of $106.13 on October 26. A sector sell-off hurt, as did a SemiAnalysis report on OpenAI.
The report claimed OpenAI plans to use Nvidia GPUs for GPT-6.1 Sol instead of Cerebras hardware. The stock is down 62% since its May 2026 debut.
The 52-week range runs from $106.13 to $386.34. Market cap sits near $28 billion after the rally.
In the second quarter, cloud revenue rose 287% to a record $128 million. Core total revenue climbed 103% to $210 million.
Losses continue to grow as the company spends on data center capacity. The stock trades at about 39 times sales.
On TipRanks, CBRS has a Strong Buy rating based on 10 Buy ratings. The average price target of $288.67 is about 142% above current levels.
Oracle also expanded AI chip deals with Nvidia, OpenAI and Snowflake, and added a Google deal to offer its TPU chips. The company holds an investor day on Wednesday, October 28.
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