Key Takeaways
- Cerebras shares jumped 10% and Oracle rose 4% on Tuesday, Oct. 27, after Oracle announced a set of AI deals at its AI World event. They include a plan to offer Cerebras’ AI inference on its cloud starting in 2027.
- The deal puts Cerebras next to Alphabet’s Google and NVIDIA as Oracle gives its customers more than one kind of AI chip. That helps answer worries that Cerebras depends too much on OpenAI.
- Neither company gave a dollar figure, and analysts’ estimates of $2.95 billion in 2027 revenue were set before the deal.
- Even after the jump, Cerebras trades at roughly half its average forward price/sales multiple since it listed.
Cerebras Systems (CBRS) stock jumped 10% on Tuesday, Oct. 27, after Oracle (ORCL) said it will offer Cerebras’ fast AI inference on Oracle Cloud Infrastructure (OCI).
That’s a welcome bounce for a stock that still trades well below its $185 IPO price.
Oracle wants options
Oracle, itself up 4% on Tuesday, announced a string of deals at its AI World event, the day before its Investor Day. Among them:
- Cerebras inference on OCI, planned for calendar 2027
- Tensor Processing Units (TPUs) from Alphabet (GOOG)’s Google, making OCI the first hyperscaler outside Google to offer them
- SambaNova’s SN50 processor, for agentic inference
- A bigger deal with NVIDIA (NVDA) for its Vera Rubin superclusters
Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, summed up the strategy in the joint release: “AI inference demands choice.” The release didn’t say what the deal is worth or how much Cerebras hardware Oracle plans to use.
A second channel for Cerebras
The OpenAI question has hung over Cerebras since it listed. OpenAI has committed to 750 megawatts of inference capacity, and Cerebras says a significant amount of its $25.4 billion in contracted revenue not yet recognized comes from that deal.
Oracle doesn’t end that reliance, but it puts Cerebras’ wafer-scale chip on one of the biggest AI clouds, next to Google’s TPUs and NVIDIA’s superclusters.
TIKR Tracks 11 Analysts on Cerebras Systems. How Many Say “Buy”?
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The numbers haven’t caught up yet
Analysts expect Cerebras’ revenue to more than triple from $0.89 billion in 2026 to $2.95 billion in 2027, then more than double again to $7.54 billion in 2028.
Those estimates date from Oct. 19, before the Oracle news, so they don’t reflect it yet. With no dollar figure and a 2027 start, I wouldn’t expect them to move much.
Cerebras went into Tuesday at 18x forward sales, its lowest since it listed and less than half its 37x average.
After the jump, it’s closer to 20x.
What Cerebras Still Has to Prove
The pop makes sense to me. Oracle hands Cerebras a sales channel that doesn’t run through OpenAI, and that dependence was the biggest doubt over the stock. I wouldn’t call it cheap, though. The “lowest since listing” multiple covers only a few months of trading, and 20x forward sales still assumes revenue more than triples next year.
Two dates will test it. Oracle’s Investor Day on Wednesday could show how much Cerebras capacity it plans to use, since it signed several chip suppliers at once. Then Cerebras reports after the close on Nov. 12, where the tell is backlog from customers other than OpenAI.
So what is Cerebras stock actually worth?
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