Cerebras Systems (CBRS) shares closed Tuesday at $119.31, up $10.94, or 10%, after the AI chipmaker announced a deal with Oracle (ORCL). The stock rose as much as 11% during the session and traded between $108.88 and $120.50. Oracle shares also gained about 3.5%. CBRS was down approximately 0.6% in premarket trading on Wednesday.

Under the agreement, Oracle Cloud Infrastructure will offer access to Cerebras’ wafer-scale systems beginning in the first half of 2027. The service will be available to AI labs, enterprises and developers building interactive applications. Oracle will become the third major cloud provider to offer access to Cerebras’ chip, following Amazon Web Services and Microsoft Azure.

The fastest inference in the world is coming to @OracleCloud . @cerebras and @Oracle partner to enable blisteringly fast inference on OCI. Cerebras brings fast AI. Oracle brings deep expertise building and running AI infrastructure at scale. Enterprises have trusted Oracle with… pic.twitter.com/Vf4kG9AAoG — Andrew Feldman (@andrewdfeldman) October 27, 2026

The post was published by Andrew Feldman on October 27, 2026: https://x.com/andrewdfeldman/status/2115112637659066678?ref_src=twsrc%5Etfw

Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, said the agreement “will add another ultrafast and deterministic option to our broad compute portfolio.” The Cerebras offering will sit alongside Oracle’s existing AI services, including Dedicated AI Clusters.

Cerebras says its Wafer-Scale Engine is 58 times larger than Nvidia’s Blackwell B200 chip. According to a regulatory filing, the system has 900,000 compute cores. The company says that placing compute and memory on a single chip reduces data movement and speeds up responses.

The company has highlighted the potential importance of response speed for AI agents, which complete multiple steps in sequence. Delays at each step can accumulate, making faster inference relevant to applications that require repeated interactions — the same interactive-application workloads the OCI service is designed to serve.

Access to Cerebras’ chip is already available through Amazon Web Services and Microsoft Azure. Oracle’s addition gives Cerebras access to Oracle’s enterprise customer base. Oracle plans to spend $90 billion to $95 billion on capital projects in fiscal 2027, which could support broader customer reach for the service. The launch timing and the amount of revenue the agreement will generate remain uncertain.

Cerebras Stock Performance and Financial Results

Tuesday’s advance followed a difficult period for CBRS. The stock reached a 52-week low of $106.13 on October 26, the day before the Oracle partnership was announced. Its 52-week range is $106.13 to $386.34, and shares remain down 61.65% since Cerebras’ May 2026 debut. After Tuesday’s rally, the company’s market capitalization was approximately $28 billion.

The stock was affected by a broader sector sell-off and by a SemiAnalysis report claiming that OpenAI plans to use Nvidia GPUs for GPT-6.1 Sol instead of Cerebras hardware.

Cerebras reported that cloud revenue increased 287% year over year in the second quarter, reaching a record $128 million — a pace that outstripped the company’s overall top-line growth. Core total revenue rose 103% to $210 million. The company continues to spend heavily on data center capacity, while its losses continue to grow. Its gross margin is 39%, and average daily trading volume is about 8 million shares.

At approximately 39 times sales, the company has a high valuation relative to its reported sales. Cerebras also competes directly with Nvidia, the leading AI chipmaker.

TipRanks shows a Strong Buy consensus for CBRS from 10 analysts, with all 10 rating the stock a Buy. The average price target is $288.67, which represents approximately 142% upside from current levels. These ratings and targets reflect analyst estimates and are not guarantees of future performance.

Oracle is scheduled to hold an investor day on Wednesday, October 28. The company has also announced expanded AI chip agreements involving Nvidia, OpenAI and Snowflake, as well as a new agreement with Google to offer Google’s TPU chips — a slate that shows Oracle sourcing AI compute from multiple chip vendors, with Cerebras now among them.

Source: https://coincentral.com/cerebras-systems-cbrs-stock-jumps-10-after-oracle-cloud-deal