Is Cerebras Systems (CBRS) Better Than SpaceX and SanDisk?

We just covered The Next SanDisk: 9 Potential Breakout AI Stocks You Shouldn’t Miss. Cerebras Systems (NASDAQ:CBRS) ranks #9 (see The Next SanDisk: 5 Potential Breakout AI Stocks You Shouldn’t Miss).

Number of Hedge Fund Investors: N/A

Cerebras Systems (NASDAQ:CBRS) is an AI chipmaker that sells Wafer-Scale Engine (WSE-3) processors. Its customers are OpenAI and Amazon Web Services, with potential for enterprise customers down the line.

Wall Street turned bullish on the company because it makes the industry’s only commercially deployed wafer-scale AI chip. Bulls point to the company’s massive $24.6 billion backlog, which is 48 times Cerebras Systems (NASDAQ:CBRS) FY25 revenue of $510 million. The backlog is supported by a $20 billion three-year deal with OpenAI announced in January 2026. In that deal, OpenAI will deploy approximately 750 megawatts of Cerebras compute capacity through 2028, with an option for an additional 1.25 gigawatts. The company also has a collaboration with AWS for disaggregated inference announced in March 2026.

Cerebras Systems (NASDAQ:CBRS) expects revenue growth with a 120% forward topline CAGR through fiscal 2028 from fiscal 2025. This is based entirely on the OpenAI and AWS commitments. Morgan Stanley recently started coverage of the stock with a $250 price target and called it one of the most differentiated AI infrastructure companies with a first-mover advantage against Nvidia. UBS came out with a $300 price target and a Buy rating. Needham also came out with $300 and a Buy rating.

The main risk is concentration. Most of the backlog depends on OpenAI. If OpenAI changes strategy or builds its own chip, Cerebras Systems (NASDAQ:CBRS) gets hurt bad. The WSE-3 also has memory scaling limitations that could prevent it from reaching enterprise customers who want flexible GPU setups. But right now, for fast inference and token generation, the stock has real demand backing it.

Barclays Maintained an “Overweight” rating on Lam Research Corporation (LRCX)

For illustration purposes only. Photo from Pixabay/Pexels

While we acknowledge the risk and potential of CBRS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CBRS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

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