Cerebras Systems stock drops 4.7% as analyst cuts price target

Cerebras Systems shares fell 4.7% in morning trading after TD Cowen, a prominent AI chip analyst, cut its 12-month price target nearly in half from $275 to $175 while maintaining a Buy rating. The reduction, the steepest among 11 analysts covering the stock, follows reports that OpenAI's "Ultrafast" GPT-6.1 Sol inference tier runs on Nvidia GPUs rather than Cerebras' wafer-scale hardware. OpenAI is Cerebras' largest backlog customer. CEO Andrew Feldman and CTO Shawn Ly sold over $240 million in Class A shares between August and late September, while the gradual IPO lockup expiration has made roughly 19.4 million shares newly sellable. The stock hit a 52-week low of $120.12 intraday, down over 68% from its all-time high of $386.34 on its May 2026 IPO day. The broader market rose during the same session, with the Nasdaq up 1.1% and S&P 500 up 0.6%, indicating company-specific factors drove the decline. The average analyst target remains $291.64, reflecting skepticism about near-term execution.