Cerebras Systems Inc. (CBRS) shares are up Thursday after the company announced a major expansion of its European AI data center footprint. The plan: bring its first European data center online by the end of 2026 and scale total capacity to 200 megawatts by the end of 2027. That's a lot of compute, and it's all about meeting the growing demand for local AI infrastructure.
The expansion signals Cerebras's confidence in Europe as a long-term growth market. A portion of the new capacity is expected to support OpenAI workloads — which makes sense given the recent mega-deal between the two companies. Cerebras is actively building data centers in Norway and Finland, aiming to give customers fast, high-performance AI compute closer to home.
The OpenAI and AWS Deals
Speaking of OpenAI, Cerebras recently disclosed a multi-year deal valued at more than $20 billion, covering 750 megawatts of high-speed inference compute. That's a monster commitment. And it's not the only big partnership: Cerebras also launched a multi-year collaboration with AWS to bring fast inference to a global audience. The strategy combines AWS's Trainium 3 chips with Cerebras CS-3 systems in a disaggregated inference setup, targeting startups, AI-native companies, and enterprises.
Earnings Beat and Guidance
Last month, Cerebras reported its first-quarter results, and they were solid. The company posted an adjusted loss of 4 cents per share, beating the consensus estimate of a 16-cent loss. Revenue came in at $193.40 million, also above the $181.59 million analysts expected. For the second quarter, Cerebras sees revenue of $194.00 million, versus the consensus estimate of $174.34 million. And for the full fiscal year, the company expects revenue between $855.00 million and $865.00 million, compared to the consensus estimate of $823.89 million. Not bad for a company that's still in investment mode.
What Analysts Think
Wall Street is generally bullish on Cerebras. The stock carries a Buy rating with an average price target of $291.09. Recent analyst moves include:
- Freedom Capital Markets: Initiated with Hold, target $209.00 (June 30)
- UBS: Buy, raised target to $320.00 (June 24)
- Rosenblatt: Buy, maintained target at $300.00 (June 24)
So analysts see upside, but the stock has some near-term technical headwinds.
Technical Picture: Momentum Fading, But Key Support Holds
As of Thursday, Cerebras shares were trading at $190.60, about 7.7% below their 20-day simple moving average of $209.03. The MACD is below its signal line, suggesting that upward momentum is fading. The stock may struggle to sustain gains unless it can reclaim that 20-day SMA. On the plus side, there's a key support level at $161.00 — a price where buyers have stepped in before. So while the short-term trend looks shaky, there's a floor underneath.
CBRS Price Action: Shares were up 7.09% at $188.93 at the time of publication Thursday.
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