Nine Wall Street firms initiated coverage of Cerebras, targeting shares at $340 within 12 months, citing AI chip demand growth.
Cerebras shares climbed 5.5% in premarket trading after multiple Wall Street brokerages, including Morgan Stanley and Citigroup, initiated coverage with optimistic ratings. The moves follow the expiration of the quiet period post-IPO, with analysts highlighting the company’s wafer-scale AI chips as a competitive edge over traditional GPU-based systems like Nvidia’s.
The California-based firm, which debuted on Nasdaq over three weeks ago, designs chips the size of a dinner plate to accelerate AI processing. Citigroup set a 12-month price target of $340, while Morgan Stanley rated the stock “overweight,” emphasizing its first-mover advantage in AI inference workloads.
Cerebras counts Amazon and OpenAI as customers and has backing from SoftBank, which reportedly explored taking the company private before its public listing. The stock’s rise reflects growing investor confidence in its unconventional AI chip strategy.