TLDR
- Cerebras Systems (CBRS) stock rose 10% on Tuesday to close at $119.31 after announcing a deal with Oracle.
- Oracle Cloud Infrastructure will offer Cerebras’ wafer-scale systems starting in the first half of 2027.
- Oracle becomes the third major cloud provider to offer access to Cerebras’ chip, after AWS and Azure.
- Cerebras hit a 52-week low of $106.13 on October 26 and is down about 62% since its May debut.
- Analysts rate the stock a Strong Buy, with an average price target of $288.67.
Cerebras Systems (CBRS) stock closed at $119.31 on Tuesday, up $10.94 or 10%. It climbed as much as 11% during the session, with a day’s range of $108.88 to $120.50.
The move came after the AI chipmaker announced a deal with Oracle (ORCL). Oracle stock also rose, gaining about 3.5% on the day.
The fastest inference in the world is coming to @OracleCloud.@cerebras and @Oracle partner to enable blisteringly fast inference on OCI.
Cerebras brings fast AI.
Oracle brings deep expertise building and running AI infrastructure at scale.Enterprises have trusted Oracle with… pic.twitter.com/Vf4kG9AAoG
— Andrew Feldman (@andrewdfeldman) October 27, 2026
Premarket trading on Wednesday was quiet. CBRS was down about 0.6% before the open.
What the Oracle Deal Includes
Cerebras will make its fast inference service available to Oracle Cloud Infrastructure customers. That includes AI labs, enterprises and developers building interactive apps. The service is expected to launch in the first half of 2027.
Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, said the deal “will add another ultrafast and deterministic option to our broad compute portfolio.” The offering will sit alongside Oracle’s existing AI services, including Dedicated AI Clusters.
Cerebras says its Wafer-Scale Engine is 58 times larger than Nvidia’s Blackwell B200 chip. It has 900,000 compute cores, according to a regulatory filing. The company says putting compute and memory on one chip cuts data movement and speeds up responses.
That matters for AI agents, which complete many steps in a row. Each step adds delay, so speed adds up fast.
Access to the chip is already available on Amazon Web Services and Microsoft’s Azure. Oracle is the third big cloud name on that list. It also opens a door to Oracle’s base of enterprise customers.
Oracle plans to spend $90 billion to $95 billion on capital projects in fiscal 2027. That spending could help Cerebras reach more customers. Delays in the launch and the amount of revenue the deal brings in are still open questions.
The Stock’s Rough Run
Tuesday’s gain follows a rough stretch. The stock hit its 52-week low of $106.13 on October 26. A sector sell-off hurt, as did a SemiAnalysis report claiming OpenAI plans to use Nvidia GPUs for GPT-6.1 Sol instead of Cerebras hardware.
The 52-week range runs from $106.13 to $386.34. The stock is down 61.65% since its May 2026 debut, and the market cap is roughly $28 billion after Tuesday’s rally.
In the second quarter, cloud revenue rose 287% from a year earlier to a record $128 million. Core total revenue climbed 103% to $210 million. The company is spending heavily on data center capacity, and losses continue to grow.
At about 39 times sales, the valuation is rich. Cerebras also competes directly with Nvidia, the leading AI chipmaker.
Gross margin sits at 39%. Average daily volume is about 8 million shares traded.
On TipRanks, CBRS holds a Strong Buy consensus from 10 analysts, all rating it a Buy. The average price target is $288.67, which implies about 142% upside from current levels.
Oracle holds an investor day on Wednesday, October 28. Oracle also announced expanded AI chip deals with Nvidia, OpenAI and Snowflake, plus a new deal with Google to offer its TPU chips.
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