Cerebras Systems (CBRS) shares are pushing higher on Monday morning following reassuring comments from OpenAI’s chief executive Sam Altman. His bullish remarks have CBRS challenging its 20-day moving average (MA), with a clear break above the $193 level expected to accelerate momentum in the near term.
Despite today’s gains, Cerebras stock is down nearly 10% versus the start of this year.
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www.barchart.comSignificance of Altman’s Remarks for CBRS Shares
In a recent post on X, Altman reaffirmed Cerebras as a close partner in powering OpenAI’s infrastructure.
Market sentiment had taken a significant hit last week on reports that OpenAI was choosing Nvidia (NVDA) chips for its upcoming model iterations. But Altman’s vote of confidence reassured investors that Cerebras’s landmark deal — agreed upon to deliver 750 megawatts of computing capacity by 2028 — remains fully intact.
His remarks are largely positive for CBRS shares as OpenAI currently accounts for a substantial portion of the company’s backlog and near-term revenue growth.
What Else Makes Cerebras Stock Worth Buying?
Long-term investors should stick with Cerebras shares primarily because the company offers a key advantage that sets it apart in the broader AI hardware landscape.
Its flagship Wafer-Scale Engine (WSE) architecture provides unprecedented compute density and ultra-fast output speeds, making it uniquely suited for real-time AI inference workloads.
While the Nasdaq-listed firm remains cash-flow negative as it scales manufacturing, its tech lead in mega-chip design equips CBRS with rare, long-term upside in an AI market hungry for hardware alternatives.
That said, Cerebras Systems is not an inexpensive name to own at nearly 56x sales as of writing. In fact, that valuation multiple makes it more than 2x costlier than the artificial intelligence industry leader Nvidia at about 25x only.
Wall Street’s Consensus View on Cerebras Systems
Wall Street firms, nonetheless, favor looking beyond valuation concerns and buying CBRS stock for the long term.
According to Barchart, the consensus rating on Cerebras Systems sits at “Strong Buy” currently, with the mean price target of about $280 signaling potential for a whopping 55% rally over the next 12 months.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.