CBRS Stock Tumbles Toward Fourth Red Month: Cathie Wood Loads Up More With $17M Purchase

• ARK purchased $28 million worth of Cerebras shares on Aug. 13, the day after the chipmaker’s results announcement.
• CBRS stock rose in Wednesday’s premarket trading, after declining for six straight sessions.
• Stocktwits sentiment for CBRS was ‘bullish’ on Wednesday.

Cathie Wood’s ARK Investment Management is piling into Cerebras Systems Inc. as the AI-chip upstart’s stock struggles to regain its blockbuster IPO highs.

ARK bought 93,290 Cerebras shares worth about $17.3 million on Tuesday, split between its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW). 

CBRS stock rose 0.2% in early premarket trading on Wednesday. The purchase marks another aggressive bet on Cerebras after a string of large additions.

Wood Loads Up On CBRS As Stock Slides

ARK’s biggest Cerebras purchase in August so far came on Aug. 13, when it bought 106,941 shares worth roughly $28 million following the stock’s earnings-linked selloff. The firm followed that with an estimated $8.8 million purchase on Aug. 18 and another roughly $14.5 million buy on Aug. 20.  

ARK’s total purchase of Cerebras stock this month totals over $60 million, based on the disclosed trades found so far. The buying builds on Wood’s earlier accumulation, with ARK acquiring roughly $47 million in June.

Wood’s conviction comes despite Cerebras’ volatile trading since its May IPO. The company priced its offering at $185 a share, then surged 68% on its first trading day, May 14.

Shares have since given back essentially all of that IPO pop, recently trading around $184, leaving the stock roughly flat from its offering price. CBRS has declined 47% from its day-one opening price and is on track for its fourth straight month in the red.

Retail View On CBRS

On Stocktwits, the retail sentiment for CBRS dipped in the past week but remained ‘bullish,’ with traders looking on to Nvidia’s quarterly report on Wednesday as the major catalyst for chip stocks broadly.

“$CBRS Everyone knows NVDA’s report is going to be a blockbuster. That’s why they are holding it down. The result will be $CBRS and other semis. Will rally back huge,” said a trader.

Cerebras’ Q2 Recap 

Last week, Cerebras reported adjusted loss per share of $0.05 for its second quarter, beating Wall Street’s estimates of a $0.18 loss per. Revenue came in at $209.9 million, ahead of the $108 million consensus estimate.

The company raised its full-year 2026 revenue outlook to $880 million to $890 million, above its previous forecast of $855 million to $865 million.

However, Cerebras’ adjusted gross margin fell to 40.6%, from 46.5% in the preceding three months. The margin pressure comes as the company rapidly expands its manufacturing capacity.

Following the report, 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.”

For updates and corrections, email newsroom[at]stocktwits[dot]com.