US Stock Market Move | NVIDIA Corporation challenges Cerebras Systems (CBRS.US) with a nearly 10% increase after a continuous drop of over 25% before.

On Monday, NVIDIA Corporation's challenger Cerebras Systems (CBRS.US) saw a sharp rise in trading, with the stock up nearly 10%, increasing by 18% over the two trading days. The company had previously experienced a continuous drop in stock price of over 25% and at one point fell below the IPO price of $185 due to the first quarterly report indicating a gross margin guidance of only 36%-38%. In terms of news, several investment banks have recently raised their target prices for the company. UBS Group AG raised its target price from $300 to $320 and maintained a buy rating, while Wedbush raised its target price to $280 and maintained an outperform rating. Morgan Stanley also pointed out that with a large number of signed orders and commitments for up to 750MW of capacity, the company is well prepared for the growth in AI inference demand. Additionally, the company's core revenue in the first quarter increased by 92% year-on-year to $193 million, exceeding market expectations. The company also reached a multi-year cooperation agreement worth over $200 billion with OpenAI and signed a data center deployment agreement with AWS, which have both supported the rebound in stock price.