After Cerebras (CBRS.US), the "challenger" of NVIDIA Corporation, saw its stock price nearly halved three weeks after going public, Wall Street collectively shouted "buy."

On June 8th, the stock price of Cerebras Systems (CBRS.US) rose by 3.02% to around $207 in early trading, marking the second consecutive day of moderate rebound for the stock. However, even so, the "AI chip rising star" that just landed on Nasdaq about a month ago has seen its stock price evaporate by nearly 42% from the intraday high of $350 on its first day of trading, with its market value dropping from a peak of over $100 billion to around $44.1 billion today. In stark contrast to the situation in the secondary market, several Wall Street research reports collectively turned bullish on the stock. On this Monday, Morgan Stanley, UBS Group AG, Wedbush, Rosenblatt, Mizuho, Barclays, and Needham, among other Wall Street institutions, all released their first coverage reports on Cerebras, and almost unanimously gave "buy", "hold" or "outperform market" ratings, with target prices ranging from $250 to $300. Why is Wall Street bullish? The reason why Wall Street investment banks have simultaneously issued "buy" ratings for Cerebras does not lie in the dazzling financial reports, but in the fact that the company has captured a unique "narrow gateway" in the AI chip market. The core difference lies in the form of Cerebras' product. The current AI computing market is dominated by NVIDIA Corporation's GPU, but Cerebras has taken a different path, manufacturing the only wafer-scale processor in the world that has been commercialized - the Wafer Scale Engine (WSE). According to technical data, the latest WSE-3 integrates 4 trillion transistors, 900,000 AI-optimized cores, with each core equipped with 48KB of local SRAM, reaching 44GB of on-chip SRAM for the entire chip, providing 21PB/second of on-chip memory bandwidth, which is thousands of times higher than a typical HBM solution. As a result of this architecture fundamentally eliminating the bottleneck of the "memory wall," Cerebras claims that its system is 15 times faster in processing most workloads compared to current leading GPU solutions, especially suitable for AI inference scenarios that are extremely latency-sensitive. Morgan Stanley pointed out that with the increasing inference capabilities of AI workloads, there is a rapid growth in the demand for low-latency inference; with a large number of signed orders backlog, and commitments for up to 750MW of capacity agreements, Cerebras is well prepared to seize this opportunity. Analyst Timothy Arcuri pointed out that Cerebras is the only supplier that supplies goods to OpenAI on a prepayment basis, and is also collaborating with Amazon.com, Inc.'s AWS in the inference field. Based on conservative estimates, UBS Group AG has given a target price of $300. Wedbush focused on the transition in the market cycle - the timing of Cerebras entering the public market coincides with a key moment in the transition of the AI computing cycle from the training phase to the inference phase. The institution stated that in inference scenarios, speed instead of raw floating-point calculation power directly determines the commercial value of the output. Cerebras' WSE-3 is the largest chip on the market to date, designed specifically for the task of fast token generation at the high-value end of inference. With its differentiated architecture, soaring contract revenue from OpenAI and AWS, as well as a market that has just begun to pay for speed, the institution sees an asymmetric, upward-trending landscape. Prior to the release of the bullish reports on Monday, Bank of America Merrill Lynch was the first to predict that Cerebras would outperform all large AI chip companies with explosive revenue growth of 370% in the next year, surpassing NVIDIA Corporation's revenue growth of 195% during the same period. Morgan Stanley (Hold rating, target price $250) Morgan Stanley analyst Joseph Moore wrote in a report to clients, "We believe Cerebras is one of the most differentiated AI infrastructure companies, with its core being the only wafer-scale processor deployed in the industry. As the inference capability of AI workloads continues to strengthen, the demand for rapid, low-latency inference is also rapidly growing. With a large number of signed orders and a commitment capacity agreement of 750 megawatts, we believe Cerebras is well prepared to seize this opportunity. This is an excellent opportunity to invest in an AI processor company that has a first-mover advantage over NVIDIA Corporation and has enormous investment potential as the field continues to develop." UBS Group AG (Buy rating, target price $300) UBS Group AG analyst Timothy Arcuri wrote in a report to clients, "The Cerebras Wafer Scale Engine (WSE) is the world's largest computing chip, with performance surpassing GPUs in some rapid inference applications in the high-end inference market. Importantly, the company shows strong commercial momentum, currently being the only supplier to supply goods to OpenAI on a prepayment basis, and its collaboration with Amazon.com, Inc. in the inference field is deepening, with many other potential collaboration opportunities. Our target price is based on what we believe are conservative deployment assumptions for OpenAI, while considering the additional leverage that Amazon.com, Inc. may have in the coming years. As we believe the company will ultimately evolve into a more comprehensive hardware supplier, our $300 target price is based on a 10x enterprise value/sales calculation, based on expected sales of $11 billion in 2029, and in reference to the performance of major hardware competitors such as NVIDIA Corporation, AMD, Broadcom Inc., Marvell Technology, Inc., etc." Needham (Buy rating, target price $300) Needham analyst N. Quinn Bolton wrote in a report to clients, "Cerebras is the only provider of Wafer Scale Engine (WSE), with SRAM capacity and on-chip memory bandwidth several orders of magnitude higher than any other AI processor. The WSE is designed for fast inference workloads that require low latency, including real-time encoding and instant research agents. In January 2026, the company announced a computing agreement with OpenAI worth over $20 billion, under which OpenAI will deploy around 750 megawatts of Cerebras computing power by 2028 and can choose to add an additional 1.25 gigawatts. In March, Cerebras announced a collaboration with AWS for decoupled inference. If OpenAI exercises the option for an additional 1.25 gigawatt capacity or if Amazon.com, Inc. receives a significant number of Cerebras systems, we believe our current model has enormous upside potential." Wedbush(Outperform market rating, target price $270) Wedbush analyst Matt Bryson wrote in a report to clients, "Cerebras is the only company to commercialize wafer-scale AI chips, and it has entered the public market at a time when the computing cycle is transitioning from training to inference; at this stage of the market, speed rather than raw floating-point calculation determines output value. Cerebras' third-generation wafer-scale engine (WSE-3) is the biggest chip sold to date, designed for a task that defines high-value inference: quick token generation. With a differentiated architecture, exponential growth in contract revenue from OpenAI and AWS, and a market that has just begun to pay for speed, we see an asymmetric, upward-trending pattern." Barclays (Hold rating, target price $280) Barclays PLC Sponsored ADR pointed out that the recent agreements reached by Cerebras with OpenAI and Amazon.com, Inc. are significant developments in the AI chip market, where customers are competing for limited chip supplies to scale their businesses. Barclays PLC Sponsored ADR stated that Cerebras is positioned in the fast inference market, and by the end of this decade, the potential size of this market could reach $300 billion. Barclays PLC Sponsored ADR stated that as the adoption of intelligent agents technology proliferates, the need for fast inference workloads will continue to grow, which aligns with Cerebras' strengths. Mizuho (Outperform market rating, target price $300) Mizuho pointed out that Cerebras is a direct beneficiary of the growth in artificial intelligence capital expenditure, with AI capital expenditure expected to grow at a compound annual growth rate of 36% to approximately $2.8 trillion by 2030. Mizuho believes the company is in a leading position in the fastest-growing submarket of "rapid inference." Mizuho expects the compound annual growth rate of this submarket to reach approximately 291% by 2030, with a size of about $550 billion, while the overall compound annual growth rate of the entire AI inference market is estimated to be 53%. The company has a proprietary software and hardware stack, with its core being the wafer-scale engine and large-scale on-chip SRAM, building a strong competitive advantage. In addition, Mizuho stated that the continually expanding customer channels support the company's revenue to achieve a compound annual growth rate of 122% between 2025 and 2029; the $300 target price is equivalent to 15 times the expected market sales ratio by 2028, falling within the mid-range of the sales-to-market ratio of 8 to 24 times for NVIDIA Corporation and Broadcom Inc. before the acceleration of their respective AI businesses.