AI chip company Cerebras Systems (NASDAQ:CBRS) saw its stock price fall by 26.41% over the past week after announcing its Q2 2026 earnings, accumulating a 40.39% decline from its May high. The company's Q2 revenue was $180.11 million, missing analysts' expectations of $193.55 million, and its GAAP EPS loss of $2.98 significantly exceeded the expected loss of $0.1801. Management anticipates that the core operating margin for Q3 will decrease from negative 16% in Q2 to between negative 25% and negative 23%.

Despite the poor performance, Wall Street analysts generally remain optimistic about Cerebras Systems. Currently, 10 out of 11 analysts covering the stock have given a "buy" rating (3 "strong buy," 7 "buy"), with an average target price of $291.64, representing approximately 57% upside from the current share price of $185.43. Among them, UBS analyst Timothy Arcuri set a target price of $330, implying a potential upside of about 78%. Analysts' bullish reasons include the company's $25.4 billion in remaining performance obligations (RPO), which includes an agreement exceeding $20 billion with OpenAI, and management's plan to triple revenue by 2027.