# Cerebras Stock Halved, Still 145x Next Year Earnings

> Cerebras stock dropped 52% from IPO but still trades at 145 times next year's earnings.
- Title: Cerebras Stock Halved, Still 145x Next Year Earnings
- Summary: Cerebras stock dropped 52% from IPO but still trades at 145 times next year's earnings. Cerebras stock fell 52% from its IPO peak but remains 145 times next…
- Keywords: cerebras, ai computing, nasdaq, stock price, earnings, valuation, openai, revenue growth, core operating margin, performance obligations, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/cerebras-stock-cut-half-still-172801447.html
- Published: 2026-09-16T17:28:01+00:00
- Read time: 1 min
- Topics: cerebras, ai computing, nasdaq, stock price, earnings, valuation, openai, revenue growth, core operating margin, performance obligations, business, finance
## Cerebras stock halved
Cerebras Systems stock dropped 52% from its May IPO peak of $386.34 to trade around $184.

> Cerebras Systems (NASDAQ:CBRS) has been cut in half. Shares of the artificial intelligence (AI) computing specialist peaked at $386.34 on their first day of trading in May
## IPO raised $6.4 billion
The company raised $6.4 billion in its May IPO at $185 per share.

> Cerebras Systems (NASDAQ:CBRS) has been cut in half. Shares of the artificial intelligence (AI) computing specialist peaked at $386.34 on their first day of trading in May, a day after the company priced its initial public offering (IPO) at $185 and raised $6.4 billion
## Strong August update
Cerebras reported $209.9 million core revenue up 103% year over year with improving margins.

> In its mid-August update, Cerebras reported core revenue (a measure that strips out pass-through data center revenue and adds back a noncash deduction tied to customer warrants) of $209.9 million, up 103% year over year, with core gross margin improving to 41% and core operating margin to negative 16%
## Cloud revenue accelerating
Cloud services revenue grew 281% year over year to $126 million in the second quarter.

> Cloud and other services revenue, as reported under generally accepted accounting principles (GAAP), was $33 million in the year-ago quarter, about $83 million in this year's first quarter, and $126 million in the second, up 281% year over year
## Valuation at 145x earnings
At $184, Cerebras trades at 145 times next year's expected earnings of $1.25 per share.

> Analysts expect Cerebras to earn about $1.25 per share next year. At around $184, the stock costs about 145 times those expected earnings
## IPO peak at 310x earnings
The stock peaked at 310 times next year's expected earnings when it was $386.34.

> May's $386.34 peak worked out to about 310 times next year's expected earnings
## Backlog for growth
Cerebras has $25.4 billion in performance obligations tied to OpenAI's 750 megawatt AI capacity purchase.

> Cerebras ended June with $25.4 billion in remaining performance obligations (work customers have committed to pay for but the company hasn't yet delivered), much of it tied to a single agreement under which OpenAI committed to purchase 750 megawatts of AI computing capacity
## Revenue vs earnings
Cerebras needs $6 per share annually to trade at 30 times earnings, but analysts expect only $1.25 next year.

> At about $184 per share, Cerebras would need to earn about $6 per share annually, nearly five times what analysts expect for next year
## Growth timeline
Most of the backlog converts after mid-2028, with profits still years away from current pricing.

> After all, Cerebras ran a core operating loss last quarter even with sales doubling, and most of the backlog converts after mid-2028
## Key takeaway

Cerebras stock fell 52% from its IPO peak but remains 145 times next year's expected earnings, indicating investors priced in rapid growth potential.