Cerebras Systems Tops Expectations In Debut Earnings, Guidance; Announces AWS Deal

Cerebras Systems
Amazon.com, Inc.

Cerebras Systems

CBRS

0.00

Amazon.com, Inc.

AMZN

0.00

Shares of Cerebras Systems Inc (NASDAQ:CBRS) tanked in early trading on Wednesday, even after reporting strong first-quarter results for the first time as a publicly traded company.

The chipmaker should be able to maintain its technological leadership in the fast inference market and "existing customers will port over more of their model offerings to run on Cerebras hardware," according to Needham analyst Quinn Bolton. 

The Cerebras Systems Analyst: Bolton reiterated a Buy rating and price target of $300.

The Cerebras Systems Thesis: The company guided its 2026 revenue and margins higher than Street expectations, Bolton said in the note.

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Management guided to 2026 revenues of $860 million at the midpoint, representing 69% growth and topping Street expectations of $825 million, the analyst stated. Cerebras Systems reported core gross margins of 46.5% and guided to 37.0% at the midpoint for 2026, higher than Needham’s estimates of 44.1% and 4.5%, respectively, he added.

The analyst noted the key takeaways from Cerebras Systems’ earnings call:

  • The 2026 outlook topped expectations due to strong demand and better cloud pricing
  • OpenAI’s GPT-5.4 is now running on Cerebras hardware
  • OpenAI is in the process of porting GPT-5.5 to Cerebras hardware
  • Amazon.com Inc’s (NASDAQ:AMZN) cloud computing platform, AWS, has inked a definitive agreement with Cerebras Systems for disaggregated inference, from which revenue is expected to ramp in 2027
  • Core gross margin could expand faster than anticipated, driven by rising cloud prices and capacity expansion
  • The company’s biggest constraint is data center capacity, not wafers

The AWS contract represents the company’s first hyperscaler cloud partnership, and management indicated that they see opportunities to potentially partner with other GPU and ASIC players for disaggregated solutions, Bolton stated.

CBRS Price Action: Shares of Cerebras Systems had declined by 15.95% to $190.59 at the time of publication on Wednesday.

Read Also: Cerebras Systems Analysts Boost Their Forecasts After Better-Than-Expected Q1 Results

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