Cerebras shares have been on a rollercoaster since its debut just over a month ago.
Credit: Michael Nagle / Bloomberg / Getty Images
Key Takeaways
- Cerebras' first earnings report since its IPO is set to be released Tuesday afternoon, with traders anticipating a big move ahead for the AI stock.
- Several analysts recently launched coverage of the stock with bullish ratings, expecting it to benefit from growing demand for AI chips.
Cerebras Systems is set to report its first quarterly results as a public company after the closing bell Tuesday, with traders anticipating a big move in the AI chipmaker's stock.
Based on current options pricing, Cerebras (CBRS) shares are seen swinging up to 13% in either direction by the end of the week. A move of that magnitude from Monday's close around $224 could see shares rise as high as $254, or drag them below $195.
Cerebras shares have lost more than a third of their value from last month's highs on their first day of trading, though they're still up more than 20% from their IPO price of $185, after a volatile few weeks.
Why This Matters to Investors
Tuesday's report will offer investors their first look at Cerebras' financials since the chipmaker's market debut.
Since the chipmaker's debut last month, analysts at several firms have launched coverage with bullish ratings for the stock, including Wedbush, UBS, and Morgan Stanley, expecting Cerebras to benefit from booming demand for AI chips.
The analysts also pointed to Cerebras' agreements with the likes of OpenAI and Amazon (AMZN) as evidence of its ability to attract high-profile clients in the space. "In our view these large contracts are necessarily the best proof points as to the inherent value of Cerebras's technology," Wedbush wrote.
The Wedbush analysts have a $270 price target for the stock, compared to $300 from UBS, and $250 from Morgan Stanley.
Cerebras is seen reporting an adjusted loss of 16 cents per share on an over 80% year-over-year jump in first-quarter revenue to $183.26 million, according to Visible Alpha consensus estimates.
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