1226 ET - Cerebras remains polarizing, eliciting strong opinions on both sides, Morgan Stanley analysts say in a research note. While the chip company characterizes its total addressable market as all of inference, the analysts see it as having only a slice of the market. Granted, though, the company has a lead in that market, with contracts in place to drive significant revenue, they add. "While the need to build out cloud capacity has some risks, we see evidence in these numbers that the company has been conservative in projecting the ramp," the analysts write. "With demand exceeding supply, and no major supply bottlenecks, we see room for material upside." Shares of Cerebras sink 16%, after the company projected narrower profit margins. (connor.hart@wsj.com)

(END) Dow Jones Newswires

June 24, 2026 12:26 ET (16:26 GMT)

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