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Cerebras Systems (CBRS) shares have been a major disappointment for investors in 2026, but the options market believes some recovery in the near term is likely after the company’s Q2 earnings on Aug. 12. Consensus is for the semiconductor giant to report a loss of $0.21 per share for its second financial quarter, slightly narrower than the loss of $0.22 it recorded for its fiscal Q1.
Heading into the quarterly release, Cerebras stock is down more than 25% versus the start of this year.
Options Data Says Cerebras Stock Will Rally After Q2 Print
According to Barchart, the put-to-call ratio on CBRS options contracts expiring Aug. 14 sits at 0.56x currently, indicating a strong conviction that the AI stock will rally after earnings.
The derivatives market data pegs the upper price on those contracts at a little over $255 at writing, signaling Cerebras Systems is poised for an 11% rally by the end of this week.
Crucially, the technical setup heading into CBRS’s quarterly print also suggests continued upside ahead.
Cerebras shares have recently ripped through its major moving averages (MAs), with an RSI in the mid-50s indicating significant buying pressure that could help the bullish options pricing play out in the days ahead.
Why CBRS Shares Aren’t Particularly Attractive to Own
Caution is still warranted in loading up on CBRS shares because they still are not inexpensive to own at current levels. As of this writing, the Nasdaq-listed firm commands a price-to-sales (P/S) multiple of more than 80x, which looks rather stretched given it has yet to turn a profit.
Moreover, executives have not recorded even a single buy transaction in the trailing 12 months, signaling a lack of insider confidence in near-term upside potential.
And it’s not like Cerebras Systems pays a healthy dividend to offset these concerns and incentivize ownership heading into the Q2 release.
Wall Street’s View on Cerebras Systems
Investors should note, however, that Wall Street analysts believe the year-to-date pullback in CBRS stock has gone a bit too far.
The consensus rating on Cerebras Systems remains at “Strong Buy,” with the mean price objective of about $282 indicating potential upside of more than 20% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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