Why Cerebras Stock Is Skyrocketing Today
Key Points
Cerebras stock tumbled more than 29% last week.
Two Ark Invest ETFs bought Cerebras stock last Friday.
- 10 stocks we like better than Cerebras Systems ›
After plunging more than 29% last week, Cerebras (NASDAQ: CBRS) stock is off to a bullish start this week. The semiconductor specialist that designs chips for artificial intelligence (AI) applications had no news to report. Yet, investors are taking note of a well-known growth investor's recent purchase of Cerebras stock.
As of 3:14 p.m. ET, shares of Cerebras are up 18.6%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Cathie Wood sees the sell-off as a buying opportunity
On Friday, Ark Invest -- led by Cathie Wood -- reported that two of its exchange-traded funds acquired shares of Cerebras during the day's trading session.
The Ark Innovation ETF picked up 16,352 shares, while the Ark Next Generation Internet ETF bought 4,130 shares.
Friday's buying activity complements Ark Invest's purchases from the middle of the week. Last Wednesday, The Ark Innovation and the Ark Next Generation Internet ETF bought 79,174 and 19,980 shares, respectively.
As of Monday afternoon, Cerebras has a 1.5% weighting in the Ark Innovation ETF and a 1.6% weighting in the Ark Next Generation Internet ETF.
Cerebras stock isn't for the faint of heart
Although some investors are drawn to stocks that have recently completed initial public offerings, others keep their distance for exactly the reason we're seeing today: the significant swings IPO stocks often experience.
While Cathie Wood's endorsement of Cerebras stock is notable, investors must remember the risk in blindly following other investors' buying and selling activity. For investors who are interested in Cerebras stock but averse to volatility, an AI exchange-traded fund (ETF) that includes Cerebras among its holdings is a better option right now.
Should you buy stock in Cerebras Systems right now?
Before you buy stock in Cerebras Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cerebras Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 29, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
