Beat/Raise With Gross Margin Noise A Distraction

Research evidence excerpt

Beat/Raise With Gross Margin Noise A Distraction

Semiconductors

Cerebras Systems, Class A

TD SECURITIES (USA) LLC EARNINGS UPDATE

June 23, 2026

Price: $226.72 (06/23/2026) Beat/Raise With Gross Margin Noise A

Price Target: $275.00 Distraction

BUY (1)

ESG SCORE: 60/100

Joshua Buchalter, CFA THE TD COWEN INSIGHT

646 562 1303

A beat/raise out of the gate, but we think investors were not prepared for the Q/Q step-down

joshua.buchalter@tdsecurities.com

in GM% that consensus was modeling. Key engagements with OpenAI and AWS are moving

Ethan Potasnick forward which is more important to the long-term story. GM% will be pressured as Cerebras

646 562 1425 aggressively ramps, but we remain upbeat on Cerebras' prospects as it scales to support a

ethan.potasnick@tdsecurities.com

meaningful revenue inflection. Buy, $275 PT.

Sean O'Loughlin, CFA

646 562 1327 Beat/Raise Out of the Gate, With Landmark Customer Wins Progressing: On its inaugural

sean.oloughlin@tdsecurities.com call as a public company, Cerebras printed a beat/raise on both revenue and GM%, a positive

Lannie Trieu, CFA start. Cerebras continues to execute to plan with both of its major customers, notably OpenAI

415 646 7217 and AWS, and management hinted to discussions with multiple customers to potentially

lannie.trieu@tdsecurities.com deploy disaggregated inference solutions. For OpenAI, Cerebras continues to bring supply

online and can now run frontier model GPT 5.4, with GPT 5.5 to come. Following its initial

Sam Reiff, CFA

MoU, Cerebras and AWS have completed a definitive agreement and will begin their technical312 577 2217

sam.reiff@tdsecurities.com collaboration, as well as prepare for deployments in AWS' datacenters; given tight capacity