CBRG 2X Cerebras ETF Surges 16% as Cerebras Jumps 8% on Microsoft Deal and Raised Guidance
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
A raised outlook and a new hyperscaler cloud deal from Cerebras Systems (NASDAQ:CBRS) are driving a sharp rebound in the leveraged ETF tied to the AI chipmaker. Leverage Shares 2X Long CBRS Daily ETF (CBOE:CBRG) is at $0.81, up 16% in afternoon trading. Cerebras stock is trading at $105.92, up 8%.
The CBRS Leverage Shares fund targets twice Cerebras’ daily move. It resets each day, so its returns can drift from that multiple over longer periods. That reset has been painful lately, with the CBRS ETF trading under a dollar and down 55% over the past month. Cerebras stock is still down 47%[1] since its May IPO.
Cerebras Tops Core Estimates and Adds Microsoft
Results for Q3 2026 from Cerebras arrived after the close on November 12[2]. Cerebras posted core revenue of $230.9 million[1], ahead of the $214.7 million LSEG consensus, CNBC reported. Adjusted earnings per share (EPS) came in at 12 cents[1], against an LSEG consensus loss of 14 cents, per CNBC. On a generally accepted accounting principles (GAAP) basis, the company lost $0.67 per share[2] in its earnings release, weighed down by $155.1 million in stock-based compensation.
Guidance did more of the lifting, with Cerebras Systems forecasting Q4 2026 revenue of $310 million[1] to $330 million, well above the $271 million LSEG consensus. In addition, Cerebras Systems raised its full-year 2026 core revenue outlook to $940 million[3] to $960 million. Management repeated plans to triple revenue in 2027, which CNBC said implies $2.85 billion[1], slightly below the $2.92 billion LSEG consensus.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is the new hyperscaler customer. Cerebras CEO Andrew Feldman said the Microsoft deal was signed in October, with revenue expected to begin in Q1 2027. Management noted the deal, with two earlier hyperscaler agreements, gives Cerebras three hyperscalers[4] using its platform for inference. Feldman declared that “Cerebras’ technology remains the undisputed champion of speed.”[5]
NVIDIA and AMD Slide as Cerebras Climbs
NVIDIA (NASDAQ:NVDA) stock is at $161.09, down 3%. Chip stocks are selling off generally, with the NASDAQ 100 down 2% and technology the weakest sector. Cerebras is moving against that tide on the strength of its own report.
Shares of AMD (NASDAQ:AMD) are at $522.93, down 11%. That’s a steeper slide than NVIDIA’s, even though AMD has a direct commercial tie to Cerebras. Management said on the November 12[4] call that Cerebras’ production disaggregated inference platform pairs AMD graphics processing units (GPUs) for prefill with Cerebras CS-3 systems for decode.
How Cerebras’ Wafer-Scale Model Differs From GPU Giants
Cerebras builds wafer-scale processors designed for very fast AI inference, selling them as systems and renting them through Cerebras Cloud, which now generates most of its revenue. The company’s design skips high-bandwidth memory (HBM), which management expects will help it avoid the memory-supply squeeze facing competitors through 2028[4]. Such a narrow focus makes Cerebras a pure play on inference speed.
NVIDIA sells a far broader accelerated computing platform including GPUs, networking, complete systems and its CUDA software ecosystem, serving hyperscalers, enterprises and sovereign governments. AMD spreads across data center accelerators, server and PC processors, gaming and embedded products, along with Helios rack-scale systems. Both giants carry greater exposure to overall chip-sector sentiment, which helps explain why they’re falling together while Cerebras trades on company-specific news.
Microsoft Ramp and OpenAI Capacity Could Shape Cerebras’ Next Move
Cerebras’ next test is whether Microsoft revenue starts flowing on the schedule Feldman described. Optimists can point to $26.1 billion[4] in remaining performance obligations as of September 30 and management’s repeated 2027 growth plan. A Q4 return to breakeven core operating profit, which management expects, would add support.
For the bears, OpenAI offers a clear contrast. Cerebras acknowledged it’s running behind on initial capacity. The delay stems from land, power and shell constraints under its OpenAI agreement, and it expects to be back on schedule by the second half of 2027[4]. Shareholders in the CBRS leveraged ETF face an larger version of that risk, since the fund’s daily reset magnifies any drop in Cerebras stock.
Prospective CBRS ETF investors can watch for any OpenAI cancellations of delayed Cerebras capacity, which management said it hadn’t received as of the call, since the OpenAI capacity timeline could remain a key swing factor for the leveraged fund.
Contact [email protected] for any questions or corrections.
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
