Freedom Capital Markets upgraded AI chipmaker Cerebras (CBRS) to Buy from Hold. The firm set a price target of $209 per share. The upgrade follows a significant drop in the company's stock. Cerebras shares recently fell 17%.
The investment firm believes the market's negative reaction is exaggerated. The slump reportedly stemmed from news that key partner OpenAI uses Nvidia (NVDA) GPUs. OpenAI uses these GPUs for the 'Ultrafast' version of its latest model. Freedom Capital Markets anticipates Cerebras will continue to secure significant business. The firm expects AI-related demand to outpace supply for years.