CBRS Stock – Cathie Wood Doubles Down on Cerebras with a $22.5M Bet

Cathie Wood's ARK Invest purchased ~$28.3M of Cerebras Systems (CBRS) shares following a 19.5% stock drop, while simultaneously reducing its Roku stake. Despite strong Q1 FY26 results with revenue up 94%, CBRS fell due to margin guidance pressures linked to an OpenAI contract. Analysts maintain a 'Strong Buy' consensus with a $299.30 price target, citing long-term AI hardware potential.

Cathie Wood's ARK Invest ETFs (exchange-traded funds) made a significant purchase of Cerebras Systems (CBRS) on Wednesday, June 24, according to ARK's daily fund disclosures. The ace hedge fund manager capitalized on the stock's 19.5% decline by buying 99,154 shares for roughly $22.48 million. A day earlier, Wood had also acquired 25,795 CBRS shares for $5.79 million ahead of the company's first public quarterly results.

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Meanwhile, Wood continued reducing ARK's stake in Roku (ROKU) following news of its acquisition by Fox Corporation (FOXA). Yesterday, ARK funds sold a combined 65,246 Roku shares worth approximately $8.81 million.

Why Is Cerebras Stock Dropping?

Cerebras Systems develops specialized AI hardware and cloud infrastructure designed to train and run large AI models. The company is emerging as a potential competitor to chip giant Nvidia (NVDA). Cerebras uses a wafer-scale AI chip to simplify large AI workloads, while Nvidia relies on GPU clusters backed by its mature CUDA ecosystem and broad industry adoption.

Cerebras posted strong Q1 FY26 results, with revenue rising 94% year-over-year to $193.4 million, beating estimates. Hardware revenue grew 59%, cloud revenue surged 178%, and its loss per share narrowed to $0.22 from $0.46. Nevertheless, the stock fell after management guided for lower margins.

Cerebras guided for Q2 core revenue of $194 million, above the $178 million consensus estimate, and reaffirmed full-year FY26 core revenue guidance of $855 million to $865 million, implying 69% growth at the midpoint. The company expects FY26 margins to remain under pressure as it ramps its $20 billion OpenAI contract and rents back hardware to meet faster-than-expected cloud demand.

Is CBRS a Good Stock to Buy?

Analysts remain bullish on Cerebras' long-term growth potential, citing its leadership in high-speed AI inference.

On TipRanks, CBRS stock has a Strong Buy consensus rating based on 10 unanimous Buy ratings. The average Cerebras price target of $299.30 implies 64.2% upside potential from current levels. Since its listing, CBRS shares have dropped 41.4%.