Cerebras stock climbed 6.3% in premarket trading to $177 per share on Monday, rebounding from a 20% drop last week after OpenAI CEO Sam Altman reassured investors that the AI hardware maker remains a close partner. The premarket gains follow a volatile period for the chipmaker following its May initial public offering.
Sam Altman Reassures Investors on X
OpenAI’s CEO addressed market concerns regarding the hardware partnership in a post on X on Friday. There is some speculation about our partnership with Cerebras,
Altman wrote. Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed.
The statement helped push the company’s stock up nearly 3% in extended trading on Friday before the stronger premarket rally on Monday.
The reassurances arrived after investor anxiety spiked last week upon revelations that OpenAI would power its “Ultrafast” mode for GPT-6.1 Sol using Nvidia graphics processing units instead of Cerebras hardware. That disclosure initially sent the stock plummeting to its lowest price since the company’s market debut.
May Initial Public Offering Valuations and Market Capitalization
Cerebras made its debut on the Nasdaq in a monster IPO on Thursday, May 14, 2026. During that initial launch, the company reached a market capitalization of $95 billion. Following last week’s sell-off and subsequent rebound, the company’s market cap sits at just over $39 billion, leaving the share price down by nearly half from its post-IPO high.
As a competitor to Nvidia, Cerebras designs and sells large computer chips and AI systems intended to process models faster than traditional GPUs. The company’s flagship product, the Wafer Scale Engine 3, runs faster than Nvidia’s GPU according to internal claims. In January, Cerebras signed a $10 billion deal with OpenAI to supply 750 megawatts of computing power through 2028.
Citi Analysts Maintain Revenue Outlook Through 2028
Financial analysts at Citi evaluated the market reaction and maintained their projections for the hardware firm. In a note published Friday morning, Citi analysts stated that their view of Cerebras’ revenue outlook between 2026 and 2028 remains unchanged.
We believe frontier-AI labs’ latest models would initially roll out on internal chips before running on third-party or Cerebras cloud, so it’s too early to read much into it,
the analysts wrote. They added that the stock’s future outperformance ties closely to concrete evidence of stabilizing gross margins, warning that any further delay in the gross margin trough could weigh on investor sentiment given the firm’s premium valuation.
Frequently Asked Questions About the OpenAI and Cerebras Partnership
What caused the recent drop in Cerebras stock?
The stock fell 20% last week to its lowest price following revelations that OpenAI selected Nvidia graphics processing units to power its “Ultrafast” mode for GPT-6.1 Sol instead of Cerebras chips.
What are the terms of the existing agreement between OpenAI and Cerebras?
Cerebras signed a $10 billion deal with OpenAI in January to supply 750 megawatts of computing power through 2028.
How did market analysts react to the partnership speculation?
Citi analysts stated in a note on Friday that their revenue outlook for Cerebras between 2026 and 2028 remains unchanged, noting it is too early to draw major conclusions from initial model rollouts.