Is Cerebras Systems (CBRS) Better Than SpaceX and SanDisk?

Fahad Saleem

Thu, July 2, 2026 astatine 9:44 AM CDT 2 min read

We conscionable covered The Next SanDisk: 9 Potential Breakout AI Stocks You Shouldn't Miss. Cerebras Systems (NASDAQ:CBRS) ranks #9 (see The Next SanDisk: 5 Potential Breakout AI Stocks You Shouldn't Miss).

Number of Hedge Fund Investors: N/A

Cerebras Systems (NASDAQ:CBRS) is an AI chipmaker that sells Wafer-Scale Engine (WSE-3) processors. Its customers are OpenAI and Amazon Web Services, with imaginable for endeavor customers down the line.

Wall Street turned bullish connected the institution due to the fact that it makes the industry's lone commercially deployed wafer-scale AI chip. Bulls constituent to the company's monolithic $24.6 cardinal backlog, which is 48 times Cerebras Systems (NASDAQ:CBRS) FY25 gross of $510 million. The backlog is supported by a $20 cardinal three-year woody with OpenAI announced successful January 2026. In that deal, OpenAI volition deploy astir 750 megawatts of Cerebras compute capableness done 2028, with an enactment for an further 1.25 gigawatts. The institution besides has a collaboration with AWS for disaggregated inference announced successful March 2026.

Cerebras Systems (NASDAQ:CBRS) expects gross maturation with a 120% guardant topline CAGR done fiscal 2028 from fiscal 2025. This is based wholly connected the OpenAI and AWS commitments. Morgan Stanley precocious started sum of the banal with a $250 terms people and called it 1 of the astir differentiated AI infrastructure companies with a first-mover vantage against Nvidia. UBS came retired with a $300 terms people and a Buy rating. Needham besides came retired with $300 and a Buy rating.

The main hazard is concentration. Most of the backlog depends connected OpenAI. If OpenAI changes strategy oregon builds its ain chip, Cerebras Systems (NASDAQ:CBRS) gets wounded bad. The WSE-3 besides has representation scaling limitations that could forestall it from reaching endeavor customers who privation flexible GPU setups. But close now, for accelerated inference and token generation, the banal has existent request backing it.

For illustration purposes only. Photo from Pixabay/Pexels

While we admit the imaginable of CBRS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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