Cerebras Systems (CBRS) is likely to post better-than-expected Q3 results, which should reflect a sales model well-positioned to avoid impact from funding concerns through at least 2028, Wedbush said in a Monday research report.

Concerns around data center spend and the company's wafer-scale engine, as well as skepticism around demand for its chips, are mostly misplaced, according to the note. The company is due to report Q3 results on Nov. 12.

A greater beat is unlikely until Cerebras deploys the 500 megawatts of data center space it needs to support OpenAI through 2027, the firm said, adding that 2028 is the appropriate year to use to evaluate the company as financials start normalizing following the initial ramp to support OpenAI.

The brokerage said it reiterated its outperform rating on the stock and cut its price target to $190 per share from $290.

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