Comparative Investment Outlook for Cerebras and SpaceX
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Cerebras Market Potential: Cerebras exited 2025 with remaining performance obligations of $24.6 billion, significantly tied to OpenAI, which is expected to add over $10 billion in compute capacity from 2026 to 2028, indicating strong demand and growth potential in the AI inference market.
- Strong Financial Performance: In 2025, Cerebras' revenue surged by 75.7% to $510 million, with cloud service revenue rising 93.6% to $151.6 million, demonstrating a shift towards a more sustainable revenue model that enhances its competitive edge in the market.
- Growth Drivers for SpaceX: SpaceX generated $18.7 billion in revenue in 2025, with Starlink connectivity contributing $11.4 billion and $4.4 billion in operating profit, providing a solid financial base to support satellite expansion and AI infrastructure development, showcasing the sustainability of its business model.
- Expansion of AI Infrastructure: The cloud services agreement with Alphabet will bring in $920 million per month for AI compute capacity, and if successfully converted, could significantly elevate SpaceX's valuation in the AI infrastructure market, further solidifying its market position.
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Analyst Views on CBRS
Wall Street analysts forecast CBRS stock price to rise
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Current: 213.670
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About CBRS
Cerebras Systems Inc. is an artificial intelligence (AI) infrastructure company that designs and manufactures an AI compute platform comprised of proprietary systems and software. The Company's products include inference Cloud, Training Cloud, CS-3 system, AI supercomputer, Wafer Scale Engine and model development. The Company's pioneering Wafer-Scale Engine (WSE), a chip encompassing an entire silicon wafer, was specifically designed to enable higher performance and speeds than GPUs for the computational demands of inference, Generative AI (GenAI), and other AI applications. It offers deployment services to assist customers with data preparation, model architecture design, training management, inference optimization, and, in select cases, ongoing system operations and management. It also offers a subscription service providing access to an ongoing stream of software updates and upgrades for purchasers of its hardware.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparing Growth Paths of Cerebras and SpaceX in AI
- Cerebras' Market Potential: Cerebras achieved $510 million in revenue in 2025, growing 75.7%, with cloud service revenue rising 93.6% to $151.6 million, indicating a successful transition from hardware sales to a more sustainable revenue model, potentially relying on OpenAI's demand for larger-scale growth in the future.
- Strategic Partnership with OpenAI: Cerebras secured a deal with OpenAI to provide 750 megawatts of compute capacity valued at over $10 billion, with OpenAI potentially spending over $20 billion in three years, which not only offers strong order support for Cerebras but may also positively impact its stock price through future revenue recognition.
- SpaceX's Revenue Base: SpaceX generated $18.7 billion in revenue in 2025, with its Starlink connectivity service contributing $11.4 billion and $4.4 billion in operating profit, demonstrating strong profitability in the satellite internet sector, providing funding for future expansion and AI infrastructure development.
- Growth in AI Infrastructure: SpaceX entered a cloud services agreement with Alphabet, paying $920 million monthly, expected to generate significant revenue for its AI compute capacity, while its Colossus data center offers over 300 megawatts of computing power to AI customers, further solidifying its position in the AI infrastructure market.
See More
Comparative Investment Outlook for Cerebras and SpaceX
- Cerebras Market Potential: Cerebras exited 2025 with remaining performance obligations of $24.6 billion, significantly tied to OpenAI, which is expected to add over $10 billion in compute capacity from 2026 to 2028, indicating strong demand and growth potential in the AI inference market.
- Strong Financial Performance: In 2025, Cerebras' revenue surged by 75.7% to $510 million, with cloud service revenue rising 93.6% to $151.6 million, demonstrating a shift towards a more sustainable revenue model that enhances its competitive edge in the market.
- Growth Drivers for SpaceX: SpaceX generated $18.7 billion in revenue in 2025, with Starlink connectivity contributing $11.4 billion and $4.4 billion in operating profit, providing a solid financial base to support satellite expansion and AI infrastructure development, showcasing the sustainability of its business model.
- Expansion of AI Infrastructure: The cloud services agreement with Alphabet will bring in $920 million per month for AI compute capacity, and if successfully converted, could significantly elevate SpaceX's valuation in the AI infrastructure market, further solidifying its market position.
See More
Cerebras vs. SpaceX: Which AI IPO Stock to Buy and Hold?
- Cerebras' Market Potential: Cerebras achieved $510 million in revenue in 2025, growing 75.7%, with cloud services revenue rising 93.6% to $151.6 million, indicating a successful shift towards a recurring revenue model that may attract more investor interest in the future.
- Strategic Partnership with OpenAI: Cerebras has secured a deal with OpenAI to provide 750 megawatts of compute capacity valued at over $10 billion by 2028, which not only offers significant revenue potential but also positions the company more prominently in the AI market.
- SpaceX's Revenue Growth: SpaceX generated $18.7 billion in revenue in 2025, with its Starlink connectivity service contributing $11.4 billion, demonstrating strong performance in the satellite internet market and providing funding for future expansion and AI infrastructure investments.
- AI Infrastructure Outlook: SpaceX's cloud services agreement with Alphabet, paying $920 million monthly, is expected to create a stable revenue stream for its AI compute capacity, further solidifying its competitive position in the AI infrastructure sector.
See More
Cerebras Systems Q1 2026 Earnings Preview
- Earnings Forecast: Cerebras Systems is set to report its Q1 2026 results on June 23, with the Zacks Consensus Estimate indicating a loss of $0.14 per share and revenues of $56.65 million, reflecting both challenges and opportunities amid rising AI infrastructure demand.
- Revenue Growth: The company reported revenues of $510 million in 2025, indicating a strengthening market position in AI computing hardware and cloud services, despite facing intense competition and macroeconomic uncertainties.
- Strategic Collaboration: The partnership with Amazon Web Services (AWS) to deliver ultra-fast AI inference solutions combines AWS Trainium servers with Cerebras CS-3 systems, aiming to optimize performance for generative AI and large language models, which could enhance revenue streams.
- Market Competition: Despite Cerebras Systems' unique technological advantages in the AI computing market, its 0.00% Earnings ESP and Zacks Rank of 3 (Hold) suggest a lower likelihood of exceeding earnings expectations in the near term, necessitating strategic adjustments in response to market dynamics.
See More
SpaceX's Record IPO Triggers Market Turmoil
- IPO Fundraising Scale: SpaceX raised $75 billion in its IPO, more than double the previous largest IPO, indicating strong market confidence in its future growth and potentially attracting more investors to emerging tech companies.
- Musk Becomes First Trillionaire: The IPO catapulted Musk's wealth to over $1 trillion, owning about 46% of SpaceX shares, which not only enhances his personal brand value but may also influence investor perceptions of corporate governance amid rising wealth inequality.
- Record Trading Volume: SpaceX saw $85 billion in trading on its first day, with an average of $66 billion over the first three days, far exceeding other popular ETFs, demonstrating extreme market interest that could lead to increased investor participation.
- M&A Transaction: Shortly after its IPO, SpaceX announced a $60 billion acquisition of AI startup Cursor, expected to close in Q3, marking one of the largest tech acquisitions on record and potentially solidifying SpaceX's competitive position in the AI sector.
See More
SpaceX's Record IPO Sparks Market Buzz
- Record Fundraising: SpaceX raised $75 billion in its IPO, more than double the previous largest IPO, demonstrating strong market confidence in its growth potential and solidifying its leadership in the aerospace sector.
- Historic Trading Volume: In its first three days, SpaceX averaged $66 billion in trading volume, significantly surpassing other popular ETFs and tech stocks, indicating extremely high investor interest and market activity.
- Rapid Market Cap Growth: SpaceX's market capitalization quickly surpassed Amazon's, reaching $2.66 trillion, despite its revenue being far lower than Amazon's, reflecting optimistic market expectations for its future potential.
- Acquisition Plans Draw Attention: Shortly after its IPO, SpaceX announced a $60 billion acquisition of AI startup Cursor, expected to close in Q3, marking one of the largest tech acquisitions on record and further enhancing its positioning in the AI sector.
See More
Comparing Growth Paths of Cerebras and SpaceX in AI
- Cerebras' Market Potential: Cerebras achieved $510 million in revenue in 2025, growing 75.7%, with cloud service revenue rising 93.6% to $151.6 million, indicating a successful transition from hardware sales to a more sustainable revenue model, potentially relying on OpenAI's demand for larger-scale growth in the future.
- Strategic Partnership with OpenAI: Cerebras secured a deal with OpenAI to provide 750 megawatts of compute capacity valued at over $10 billion, with OpenAI potentially spending over $20 billion in three years, which not only offers strong order support for Cerebras but may also positively impact its stock price through future revenue recognition.
- SpaceX's Revenue Base: SpaceX generated $18.7 billion in revenue in 2025, with its Starlink connectivity service contributing $11.4 billion and $4.4 billion in operating profit, demonstrating strong profitability in the satellite internet sector, providing funding for future expansion and AI infrastructure development.
- Growth in AI Infrastructure: SpaceX entered a cloud services agreement with Alphabet, paying $920 million monthly, expected to generate significant revenue for its AI compute capacity, while its Colossus data center offers over 300 megawatts of computing power to AI customers, further solidifying its position in the AI infrastructure market.
See More
Comparative Investment Outlook for Cerebras and SpaceX
- Cerebras Market Potential: Cerebras exited 2025 with remaining performance obligations of $24.6 billion, significantly tied to OpenAI, which is expected to add over $10 billion in compute capacity from 2026 to 2028, indicating strong demand and growth potential in the AI inference market.
- Strong Financial Performance: In 2025, Cerebras' revenue surged by 75.7% to $510 million, with cloud service revenue rising 93.6% to $151.6 million, demonstrating a shift towards a more sustainable revenue model that enhances its competitive edge in the market.
- Growth Drivers for SpaceX: SpaceX generated $18.7 billion in revenue in 2025, with Starlink connectivity contributing $11.4 billion and $4.4 billion in operating profit, providing a solid financial base to support satellite expansion and AI infrastructure development, showcasing the sustainability of its business model.
- Expansion of AI Infrastructure: The cloud services agreement with Alphabet will bring in $920 million per month for AI compute capacity, and if successfully converted, could significantly elevate SpaceX's valuation in the AI infrastructure market, further solidifying its market position.
See More
Cerebras vs. SpaceX: Which AI IPO Stock to Buy and Hold?
- Cerebras' Market Potential: Cerebras achieved $510 million in revenue in 2025, growing 75.7%, with cloud services revenue rising 93.6% to $151.6 million, indicating a successful shift towards a recurring revenue model that may attract more investor interest in the future.
- Strategic Partnership with OpenAI: Cerebras has secured a deal with OpenAI to provide 750 megawatts of compute capacity valued at over $10 billion by 2028, which not only offers significant revenue potential but also positions the company more prominently in the AI market.
- SpaceX's Revenue Growth: SpaceX generated $18.7 billion in revenue in 2025, with its Starlink connectivity service contributing $11.4 billion, demonstrating strong performance in the satellite internet market and providing funding for future expansion and AI infrastructure investments.
- AI Infrastructure Outlook: SpaceX's cloud services agreement with Alphabet, paying $920 million monthly, is expected to create a stable revenue stream for its AI compute capacity, further solidifying its competitive position in the AI infrastructure sector.
See More
Cerebras Systems Q1 2026 Earnings Preview
- Earnings Forecast: Cerebras Systems is set to report its Q1 2026 results on June 23, with the Zacks Consensus Estimate indicating a loss of $0.14 per share and revenues of $56.65 million, reflecting both challenges and opportunities amid rising AI infrastructure demand.
- Revenue Growth: The company reported revenues of $510 million in 2025, indicating a strengthening market position in AI computing hardware and cloud services, despite facing intense competition and macroeconomic uncertainties.
- Strategic Collaboration: The partnership with Amazon Web Services (AWS) to deliver ultra-fast AI inference solutions combines AWS Trainium servers with Cerebras CS-3 systems, aiming to optimize performance for generative AI and large language models, which could enhance revenue streams.
- Market Competition: Despite Cerebras Systems' unique technological advantages in the AI computing market, its 0.00% Earnings ESP and Zacks Rank of 3 (Hold) suggest a lower likelihood of exceeding earnings expectations in the near term, necessitating strategic adjustments in response to market dynamics.
See More
SpaceX's Record IPO Triggers Market Turmoil
- IPO Fundraising Scale: SpaceX raised $75 billion in its IPO, more than double the previous largest IPO, indicating strong market confidence in its future growth and potentially attracting more investors to emerging tech companies.
- Musk Becomes First Trillionaire: The IPO catapulted Musk's wealth to over $1 trillion, owning about 46% of SpaceX shares, which not only enhances his personal brand value but may also influence investor perceptions of corporate governance amid rising wealth inequality.
- Record Trading Volume: SpaceX saw $85 billion in trading on its first day, with an average of $66 billion over the first three days, far exceeding other popular ETFs, demonstrating extreme market interest that could lead to increased investor participation.
- M&A Transaction: Shortly after its IPO, SpaceX announced a $60 billion acquisition of AI startup Cursor, expected to close in Q3, marking one of the largest tech acquisitions on record and potentially solidifying SpaceX's competitive position in the AI sector.
See More
SpaceX's Record IPO Sparks Market Buzz
- Record Fundraising: SpaceX raised $75 billion in its IPO, more than double the previous largest IPO, demonstrating strong market confidence in its growth potential and solidifying its leadership in the aerospace sector.
- Historic Trading Volume: In its first three days, SpaceX averaged $66 billion in trading volume, significantly surpassing other popular ETFs and tech stocks, indicating extremely high investor interest and market activity.
- Rapid Market Cap Growth: SpaceX's market capitalization quickly surpassed Amazon's, reaching $2.66 trillion, despite its revenue being far lower than Amazon's, reflecting optimistic market expectations for its future potential.
- Acquisition Plans Draw Attention: Shortly after its IPO, SpaceX announced a $60 billion acquisition of AI startup Cursor, expected to close in Q3, marking one of the largest tech acquisitions on record and further enhancing its positioning in the AI sector.
See More
