Cerebras Shares Rise After Freedom Capital Buy Upgrade

Cerebras Systems Inc shares rose nearly 2% on Friday after Freedom Capital upgraded the AI chipmaker to a Buy rating with a $209 price target. The rebound follows a 17% weekly decline in stock value sparked by reports that OpenAI is utilizing Nvidia GPUs for its GPT-1 Sol model.

Investors reacted to the OpenAI news by questioning the strength of the partnership between Cerebras and the AI laboratory. Freedom Capital analyst Paul Meeks dismissed the selloff as an exaggerated reaction to a minor threat, stating that high AI demand will sustain business for Cerebras alongside partners such as Advanced Micro Devices and Amazon Web Services.

Wall Street projections estimate Cerebras revenue will reach $2.95 billion by 2027. However, analysts indicate that achieving these targets depends on the company's ability to expand its manufacturing and power capacity according to schedule.