Cathie Wood's ARK Invest Buys $28M Of Nvidia Rival Cerebras Amid Earnings Selloff

• The Cerebras purchase came after ARK bought millions of dollars worth of Nvidia shares in recent weeks.
• The purchases of CBRS stock were split between the ARK Innovation ETF and ARK Next Generation Internet ETF.
• Wall Street’s reaction to Cerebras’ results was mixed, but Mizuho and UBS both viewed the post-earnings decline as an opportunity to buy the stock.

After buying Nvidia (NVDA) for weeks, Cathie Wood’s ARK Invest doubled down on one of the chipmaker’s most closely watched challengers, Cerebras Systems (CBRS) after its earnings-driven selloff.

ARK purchased 106,941 Cerebras shares worth $28.02 million on August 13, according to the firm's daily trade disclosures. The purchases were split between the ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).

CBRS stock dropped nearly 3% at market open on Friday, after a 12% drop in the previous session following the firm’s earnings report. On Stocktwits, retail sentiment around the shares trended in ‘extremely bullish’ territory, accompanied by chatter at ‘extremely high’ levels.

ARK’s increase in Cerebras stake comes after weeks of buying Nvidia shares. The fund bought roughly $15.4 million of Nvidia shares on July 28, followed by about $17.6 million on August 5. The following week, ARK purchased another 122,422 shares worth about $26.6 million across its funds.

Wall Street Saw The Buying Opportunity 

Wall Street’s reaction to CBRS earnings was mixed on Thursday. However, most agreed that the drop in CBRS stock was a “buying opportunity.”

Mizuho lowered its price target to $300 from $310 and said it was a “buyer of the stock.” Meanwhile, UBS hiked its price target to $330 from $320 and stated that the pullback was a “compelling buying opportunity.”

Cerebras is viewed as a challenger to Nvidia (NVDA) because while it makes a different type of chip than the classic Nvidia GPU, it’s the size of a dinner plate. It uses Wafer-Scale Engine technology to keep an entire 300-millimeter silicon wafer intact as a single processor. 

Why Did Cerebras Stock Take A Dip?

Cerebras reported adjusted loss per share of $0.05, beating Wall Street’s estimates of a $0.18 loss per share cited by Koyfin. Revenue came in at $209.9 million, ahead of the $194 million consensus estimate.

It also raised its full-year 2026 revenue outlook to $880 million to $890 million, above its previous forecast of $855 million to $865 million. The company also expects third-quarter core revenue of $214 million to $216 million, ahead of the consensus of roughly $212 million.

However, Cerebras’ adjusted gross margin fell to 40.6% in the second quarter, from 46.5% in the preceding three months. Chief Financial Officer Bob Komin said on the post-earnings conference call that the roughly five-percentage-point decline was driven by higher costs to rent computing capacity that Cerebras had previously deployed for other customers.

The margin pressure comes as the company rapidly expands its manufacturing capacity. Cerebras said it expects to increase that capacity by more than tenfold this year, adding infrastructure to meet growing demand for its AI systems.

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