Cerebras shares climb as Wall Street brokerages back AI chip strategy

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Reuters

Mon, June 8, 2026 astatine 7:52 AM CDT 2 min read

June 8 (Reuters) - Cerebras shares gained connected Monday arsenic aggregate Wall Street firms initiated sum with bullish calls aft the quiescent period, ‌backing the spot designer's unconventional AI strategy much than 3 weeks ‌after its beardown debut.

Shares of the institution roseate 5.5% successful premarket trading, with astatine slightest nine brokerages — including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS — initiating sum of the stock.

The California-based steadfast designs wafer-scale motor chips astir the size of a meal sheet to velocity up processing, challenging accepted GPU-based systems, similar those ‌of Nvidia, that trust connected ⁠clusters of interconnected chips.

"As AI workloads go progressively reasoning-intensive, request for fast, low-latency inference is increasing rapidly," said Morgan Stanley ⁠analysts led by Joseph Moore, who complaint the banal "overweight".

"This is simply a unsocial accidental to put successful an AI processor institution with a first-mover vantage against Nvidia, and offers substantial upside arsenic the class evolves."

Citigroup expects Cerebras' shares to deed $340 successful ‌the adjacent 12 months, according to LSEG-compiled data.

IPO underwriters tin people probe connected a banal 25 days aft listing.

Cerebras counts Amazon.com and Sam Altman's OpenAI arsenic customers and is besides backed by the ChatGPT shaper and Japanese concern elephantine SoftBank. The second reportedly sought to instrumentality the spot decorator backstage earlier ‌its debut.

Cerebras debuted connected the tech-heavy Nasdaq more than 3 weeks agone and closed about 70% supra its archetypal public offering terms of $185.

However, its shares person since mislaid astir ‌36%, arsenic of past close, connected concerns the planetary tech rally had tally excessively far, portion investors besides priced successful hawkish Federal Reserve monetary argumentation for the remainder of the twelvemonth amid the Middle East conflict.

The Philadelphia ‌SE Semiconductor Index is up 60% this quarter, connected way for its biggest quarterly summation since January 2000.

(Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore)

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