Cerebras Systems (CBRS) fell 3.6% to $177.50 on Tuesday, even after the company announced a new data center partnership in Finland. The stock is now down more than 42% over the past 12 months and is trading more than 15% below its 20-day moving average.

The Finland agreement is with Compute Nordic Finland and covers a new AI data center in Mikkeli. The facility will be developed in phases and is expected to reach 165 MW of contracted IT capacity. Construction on the first 50 MW phase is already underway.

Under the agreement, each service order has a seven-year term, which gives Cerebras long-term infrastructure to support its AI compute platform. The project is also expected to create jobs in the Mikkeli region.

The decline came despite the announcement of positive business developments. Broader market conditions were weak, with the Nasdaq (QQQ) down 1.5% and the S&P 500 off 0.76%. AI infrastructure stocks often move alongside shifts in growth sentiment, making company-specific announcements only one part of the trading picture.

From a technical standpoint, CBRS is trading below both its 20-day simple moving average of $212.57 and its 50-day simple moving average of $203.90. The MACD is below its signal line and shows a negative histogram, indicating fading buying pressure. Key support is at $173.50, just above the 52-week low of $160.81.

Cathie Wood Steps In

While the stock fell, Ark Invest was buying. On Aug. 25, Ark purchased 93,290 CBRS shares across multiple ETFs, worth about $17.2 million. That followed additional buying earlier in August.

Wood’s investment thesis centers on Cerebras’ position in AI inference. The company says its CS-4 system delivers up to 30 times faster inference than GPU-based alternatives. Cerebras is also working with AMD on a disaggregated inference architecture that offers up to five times higher throughput per watt in certain setups.

The company has partnerships with OpenAI, AWS, and AMD, and is building an inference cloud business alongside its hardware sales.

Strong Numbers, Rich Valuation

Cerebras reported second-quarter revenue of $180.1 million, up 74% year over year. Core revenue reached $209.9 million, up 103% year over year. Cloud and services revenue rose 287% year over year to $127.7 million, while core gross margin improved to 41%.

Management raised full-year fiscal 2026 core revenue guidance to $880 million to $890 million. Third-quarter core revenue guidance came in at $214 million to $216 million.

The company ended the second quarter with $8.6 billion in cash, restricted cash, and short-term investments, along with $25.4 billion in remaining performance obligations. It also has more than 600 MW of data center capacity live or under contract, underscoring the scale of infrastructure needed to support its AI business.

The valuation remains elevated. With a market capitalization of about $42.5 billion and annual sales of roughly $510 million, the company’s price-to-sales ratio stands at around 60 times. Cerebras is still losing money on a GAAP basis.

Wall Street remains constructive despite the premium. Of 11 analysts, eight rate the stock a “Strong Buy,” one rates it “Moderate Buy,” and two rate it “Hold.” The average price target is $283.91. UBS has a $330 target, Morgan Stanley raised its target to $279, and Wedbush lifted its target to $290.

The next earnings report is estimated for Nov. 19, 2026. Analysts forecast revenue of $214.90 million and an EPS loss of 14 cents.