Can Cerebras (CBRS) Stock Challenge Nvidia in Europe? New Data Centers Say Yes

TLDR

• CBRS stock jumped ~7% in pre-market trading Thursday after announcing a major European expansion
• Cerebras plans to bring its first European data center online by end of 2026, with rapid build-out across France and the Nordics
• Total European capacity target is 200 MW by end of 2027
• Part of the capacity will support OpenAI workloads under an existing partnership between the two companies
• Wall Street holds a Strong Buy consensus on CBRS, with an average price target of $296.44 — implying 63.1% upside

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Cerebras Systems (CBRS) jumped roughly 7% in pre-market trading on Thursday after announcing plans to expand its AI compute capacity across Europe. The move sent the stock higher as investors responded to what CEO Andrew Feldman called “massive expansions” worth several billion dollars.

Cerebras Systems Inc., CBRS

Cerebras said it will bring its first European data center capacity online before the end of 2026. A rapid build-out across France and the Nordics will follow, with a combined power capacity target of 200 MW across the continent by end of 2027.

To put that in context, hyperscale cloud facilities typically draw 100 MW or more, while smaller enterprise data centers consume between 1 and 20 MW. Cerebras is aiming squarely at the high end.

Part of the planned European capacity is set to support OpenAI workloads under an existing deal between the two companies. That partnership gives the expansion added weight — OpenAI’s inference demand is substantial and growing.

Why Europe, Why Now

Cerebras cited surging demand from European businesses, governments, and research institutions looking for alternatives to compute concentrated in the U.S. and Asia. Transatlantic tensions have made data sovereignty a genuine priority for many European buyers.

Feldman told AFP on the sidelines of the RAISE Summit in Paris that demand in Europe is growing “faster than we can keep up.”

Cerebras has focused on chips built for AI inference — the process by which AI models respond to user prompts. Inference demand has surged as AI agents become more widely used, since agents require far more compute than standard queries.

The company claims its Wafer Scale Engine 3 chips deliver faster performance than Nvidia’s GPUs. Nvidia currently powers more than 90% of Europe’s announced AI factory projects, according to the company itself, making it the benchmark Cerebras is chasing.

Wall Street Reaction

Cerebras made its Nasdaq debut in May, raising $5.5 billion in one of the 15 largest IPOs in Wall Street history. The European expansion announcement adds momentum to a stock that analysts already view favorably.

Wall Street holds a Strong Buy consensus on CBRS, with 10 unanimous Buy ratings. The average price target sits at $296.44, implying 63.1% upside from current levels.

Cerebras said the European data centers will offer high-speed AI inference infrastructure designed to deliver faster response times for complex AI workloads.

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