Cerebras Stock Looks Like a Buy Due to an OpenAI Relationship and Surging Revenue
The upstart chipmaker recently reported strong second-quarter revenue growth and issued an upbeat outlook.
Overview
After Cerebras Systems (NASDAQ: CBRS) reported its second-quarter results after the close on Aug. 12, its shares sank 16% over the following two trading sessions, although the stock bounced back after the investment advisor Wedbush Securities praised the company for powering OpenAI's ultrafast mode for its GPT-5.6 Sol model.
The chipmaker's stock is now down by around 43% from the high it touched shortly after its initial public offering earlier this year, and the stock looks like a buy as inference demand soars.
Details
Cerebras makes systems built around its wafer-scale chips -- processors the size of dinner plates that are made from a whole silicon wafer. They can contain a large amount of static random-access memory (SRAM), which is an advantage, but they also require special cooling and power management, which makes them a premium option.
Source
Originally published at www.fool.com.