- Cerebras shares dropped 4.7% in morning trading on Monday, October 19, 2026, after TD Cowen cut its price target to $175 from $275 while keeping a Buy rating.
- Reports that OpenAI's Ultrafast tier runs on Nvidia GPUs instead of Cerebras wafer-scale hardware have pressured the stock; the tier runs at 300 tokens per second, down from 750.
- Cerebras is doubling its Wafer-Scale Engine 3 clock speed to 2.8 GHz from 1.4 GHz to maintain competitiveness.
- OpenAI accounts for the largest portion of Cerebras' contracted backlog, and the multiyear agreement is potentially worth over $20 billion.
- CEO Andrew Feldman and CTO Sean Lie sold more than $240 million in Class A shares between August and late September through pre-arranged trading plans, and a post-IPO lockup expiration released about 19.4 million additional shares.
Quotes
“The new price target represents the largest cut among the 11 analysts who currently cover the stock.”
“less than half the 750 its last model pulled from Cerebras silicon”