Nvidia Rival Cerebras Rises More Than 12%. Partnering With Flex to Expand US Domestic Capacity, Spending Billions of Dollars to Expand European Computing Power Infrastructure

Tradingkey - On July 9, Eastern Time, Nvidia rival Cerebras Systems ( CBRS) surged over 12% intraday to break back above $200 per share. As of press time, it was up 9.44% at $198.87. It is reported that Cerebras and Flex are expanding their domestic production lines in California, with the overall production capacity of the CS-3 system expected to increase sevenfold. Meanwhile, Cerebras announced plans to bring its first European data center online by the end of 2026.

[Source: TradingView]

Cerebras and Flex jointly announced the expansion of their manufacturing partnership, which will add multiple dedicated production lines in California, along with expanded facility space, automated testing equipment, and specialized manufacturing teams, to achieve a sevenfold increase in production capacity for its flagship CS-3 AI acceleration system by the end of 2026.

Reportedly, the CS-3 is built on the proprietary Wafer-Scale Engine (WSE) architecture, featuring a single, whole-wafer chip with physical dimensions far exceeding traditional GPUs. Its manufacturing, assembly, and calibration processes carry extremely high technical barriers. This expansion enables the design, assembly, and full-process testing of the entire high-end AI supercomputing system to be completed locally in Silicon Valley, California, significantly strengthening the self-control and resilience of the U.S. high-end AI computing power supply chain.

In addition, the company plans to launch its first regional AI data center in Europe by the end of 2026, accelerating the deployment of computing infrastructure in France and the Nordic region, with plans for new computing nodes in Norway and Finland. The goal is to reach a total installed computing capacity of 200 megawatts in Europe by the end of 2027, with a portion of these computing resources dedicated to its core strategic customer, OpenAI. Cerebras intends to invest billions of dollars in Europe as part of this expansion plan.

Andrew Feldman, co-founder and CEO of Cerebras, stated that this large-scale European layout is key to locking in global computing power orders for 2027 in advance. Local deployment of computing power in Europe can satisfy overseas customers' demands for low latency and local data compliance in AI training and inference.

Over the past three months as of today, a total of 10 analysts have issued ratings on Cerebras Systems, with the highest target price forecast at $340, the lowest at $273, and the average target price at $296.44, representing a 48% upside potential from the current share price.