Wedbush raised its price target on AI chipmaker Cerebras Systems to $280 from $270 even as the stock fell 16% on Wednesday to $189.63. Wedbush saw Cerebras’ revenue and profitability land a bit ahead of its own expectations, helped by stronger hardware sales and higher pricing for the company’s cloud service. The firm expects a similar pattern in second-quarter guidance, with revenue again coming in above its forecast. Wedbush thinks gross margin will likely shrink as OpenAI-related revenue grows and changes the sales mix, but now expects that drag to be smaller than previously modeled, which supports lifting its target while keeping an “outperform” rating. Wedbush’s upside case leans on new products that improve performance, the ability to raise prices without denting demand, more data center capacity, and continued appetite for AI computing. The $280 target versus $189.63 implies a big valuation gap if its assumptions hold, but the debate centers on whether upcoming guidance and results show enough revenue upside to offset mix-driven margin pressure as OpenAI revenue ramps up, and whether profitability finds a floor that supports the broker’s 2026 view.