Dear Friend,
For a century, America fought wars over energy buried six thousand miles away.
The largest energy source on Earth was under our own feet the whole time - much of it beneath the desert near the Grand Canyon.
How big?
50,000 times every oil and gas reserve on the planet.
Combined.
The center of the Earth runs as hot as the sun's surface.
Tapping a sliver of it could power civilization for two million years.
The size was never the problem. The reach was - until a drilling crew hit the DOE's 2035 targets twelve years early, and costs fell 50% in 18 months.
Google signed. Gates invested. The Pentagon made it a priority.
One company has quietly built this for sixty years.
See the company sitting on the biggest energy source on Earth >>
“The Buck Stops Here,”
Kelly Maguire
Behind the Markets
Cerebras Systems, Inc: The Next Rags-to-Riches AI Story?
By Thomas Hughes. Published: 6/25/2026.
Key Points
- Cerebras Systems targets the $125 billion AI inference market with chips that deliver double to triple the token-generation throughput of traditional GPU setups.
- Key growth catalysts include revenue-generating deals with OpenAI and AWS, supply chain insulation from HBM shortages, and the ability to ramp production ahead of competitors.
- Ten of 11 analyst ratings are Buys, with the consensus price target approximately 60% above late-June levels, as analysts view company guidance as conservative.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
In a world where bigger is better, Cerebras Systems (NASDAQ: CBRS) appears to be well positioned. Instead of linking numerous AI cores together and creating data-transfer bottlenecks, Cerebras chips are massive, comparable to dinner plates, and house thousands of cores on each one.
The advantage of this approach is straightforward: speed. Housing AI cores on a single chip enables lightning-fast performance that traditional GPU technology cannot match. The downside is memory capacity: NVIDIA’s (NASDAQ: NVDA) Vera Rubin natively supports far more memory, making it a superior choice for training and advanced applications.
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The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidMeanwhile, Cerebras Systems' speed makes its AI technology well-suited to real-time inference, a much larger market.
Cerebras Set to Dominate in the AI Inference Market
Currently estimated at approximately $125 billion as of mid-2026, the inference market is expected to grow at a solid double-digit compound annual growth rate for at least the next four to five years, roughly doubling over that period. While GPUs remain the foundation of inference, hardware demand is expanding to include more specialized equipment better suited to the task.
Cerebras's other advantages include the far simpler programming required compared with multi-GPU setups, a smaller footprint—since one Cerebras chip can replace dozens of servers—and lower operating costs. For comparable computing power, the chips deliver industry-leading speeds, often generating tokens at two to three times the throughput of traditional GPU setups, depending on the model.
CBRS Pulls Back to IPO Lows With Catalysts in Play
Cerebras Systems has several catalysts in play, including a growing number of business deals, supply chain insulation, and new product launches. Deals such as those with OpenAI and Amazon’s (NASDAQ: AMZN) Amazon Web Services are generating revenue now and are expected to ramp in upcoming quarters.
OpenAI is currently porting GPT 5.4 and GPT 5.5 to Cerebras infrastructure and plans to deploy 750 megawatts of its own capacity soon.
The deal with AWS promises to generate a rapidly growing revenue stream through a disaggregated inference setup: AWS's Trainium chips handle the prefill stage—processing the input—while Cerebras's CS-3 systems run the high-speed decode stage that generates the output tokens.
Other catalysts for Cerebras include manufacturing and construction that do not require high-bandwidth memory (HBM), insulating the firm from industry bottlenecks. The result is that Cerebras can ramp production of its chips while others are forced to wait on memory modules, putting it in a position to gain market share quickly.
Hurdles Drive Volatility for CBRS Shareholders
However, as strong as the outlook may be, the company still has hurdles and headwinds to overcome. Among them is customer concentration, which leaves it reliant on a limited number of hyperscalers, including the United Arab Emirates-backed G42 Holdings, Ltd. That exposure invites government scrutiny and export controls. Meanwhile, the sharp increase in inference demand forced the company to lease back previously committed capacity, temporarily pressuring margins.
The more pressing concern is competition. In-house chips seek to achieve much of what Cerebras Technology is doing, and there is the memory shortfall to consider. While Cerebras chips are extremely fast, they have limited on-chip memory, which affects their usefulness in some applications.
Although the systems are excellent at producing output, they struggle with input and need front-end assistance with massive prompts, such as enterprise-grade requests based on potentially endless datasets. The deal with Amazon is an example, as Cerebras systems need the Trainium infrastructure to sort and organize the data into digestible pieces before they can generate super-fast responses.
The company’s plan is to increase its memory capacity over time by shrinking the size of the SRAM modules within each chip. It has done so successfully across several generations and is on track to do so again with its upcoming technology. The caveat is that there is a physical limit to how much can be placed on a single wafer because nodes can only get so small.
Optimistic Analysts Highlight Value Opportunity in CBRS Stock
The initial analyst outlook for Cerebras is bullish. The first 11 reports to appear on MarketBeat’s tracking page since the IPO include 10 Buy ratings, for a 92% Buy-side bias. The group sees the stock as fairly valued near its IPO level, approximately 60% above the late-June price action. The risk is that price action will continue to sell off, as is often the case with IPO stocks, but the analysts' chatter suggests otherwise. They view company guidance as conservative, expecting strengths to emerge as the year progresses.
Among those strengths is the potential for accelerated gross margin expansion. The combination of capacity ramping and rising compute costs creates a dual lever for growth. In this scenario, CBRS will likely outperform its guidance in the upcoming quarters and improve its profitability outlook.
As it stands, profits are expected by next year, and profitability is expected to improve aggressively over the subsequent three to five years.
Oracle’s Sell-Off Looks More Like a Mispricing Than a Warning
Submitted by Thomas Hughes. Originally Published: 6/23/2026.
Key Points
- Oracle's stock is trading at 22X current-year earnings, roughly 50% below typical blue-chip tech valuations, as the market underprices its long-term backlog conversion.
- Analysts tracked by MarketBeat rate ORCL a Moderate Buy with 79% buy-side bias and a consensus price target implying a 60% gain over the next 12 months.
- Oracle's AI-driven data center backlog is on track to reach trillion-dollar levels, with backlog conversion expected to fuel debt reduction and cash flow improvement over time.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
Oracle’s (NYSE: ORCL) stock sell-off began as an understandable, if overdone, reaction to fears of software-as-a-service (SaaS) disruption and rising debt. Since then, however, it has spiraled into an outright disconnection from reality. Yes, debt is increasing, but this is not an emerging tech startup with an uncertain growth path. It is a blue-chip company at the center of AI, supported by a backlog that can offset those liabilities.
Oracle is a proven builder and operator of AI-grade data centers, and this remains an execution story. Its debt is set to rise in 2026, but so is its backlog, which is on track to reach trillion-dollar levels.
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The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidThe biggest risk is construction delays, although those delays are more a matter of shifting resources than physical setbacks. The headwind created by OpenAI’s decision to abandon plans to expand its Stargate facilities is already fading, as the expected capacity will be picked up by other major hyperscalers, including Meta Platforms (NASDAQ: META). Funding and timeline concerns are also largely derisked, with Blackstone helping secure institutional investment. Critical infrastructure, including power systems, has also been secured. The worst-case scenario is that the initial revenue surge expected from backlogged capacity may not begin until early 2028.
Oracle Trades for Pennies on the Dollar in 2026
Oracle’s earnings quality and outlook give buy-and-hold investors plenty of reason to take notice. Trading at only 22X the current-year earnings outlook, the company is fairly valued relative to the S&P 500 but still about 50% below where blue-chip tech growth stocks typically trade. More importantly, that valuation does not account for the coming backlog conversion, leaving the stock priced very cheaply relative to longer-term forecasts.
Oracle’s price-to-earnings multiple (P/E) falls to as low as 8X within four years and to 4X by 2035, although the number of available estimates diminishes the further out you look. The takeaway is that the market is pricing in the debt and near-term headwinds, not the growth. That leaves room for significant share-price gains in the years ahead. In this scenario, Oracle’s stock could rebound by as much as 50% in the near term, then continue advancing over subsequent quarters, potentially rising by 500% or more over the next decade as contracted backlog converts into revenue, cash flow, and earnings.
Cash flow and earnings will be central to the stock’s performance over time. Cash flow is impaired in 2026, which limits buybacks and puts dividends at risk, but it is expected to improve gradually. Backlog conversion should drive debt reduction, stronger cash flow, and free cash flow, while also enabling aggressive buybacks.
Bullish Analysts Support Oracle’s Market, Summer 2026
Analysts’ trends are equally bullish, underscoring the value opportunity. MarketBeat tracks 38 analysts, with coverage and sentiment steady in early 2026. By consensus, the group rates the stock a Moderate Buy with a 79% buy-side bias. The key factor is that price targets are rising, pushing the high end of the range higher, with consensus forecasting a 60% increase in the stock price over the next 12 months. In this scenario, Oracle’s share price could rebound sharply, potentially catalyzed by the upcoming earnings report.
Oracle is a mid-cycle reporter and is expected to release fiscal Q1 2027 results in early to mid-September, weeks after other leading AI infrastructure names. The likely outcome is that its cloud business will continue to outperform its legacy businesses, with infrastructure and AI leading the way. As it stands, Oracle’s cloud business is growing at a hyper pace and is being overshadowed only by its backlog. Backlog and guidance should be the market-moving details, and both are expected to reflect continued strength and improving visibility into backlog conversion.
Oracle: A Market in the Midst of a Reversal
Oracle’s stock price action has not been encouraging for bulls as of late June 2026. Still, despite recent weakness, the market remains above a critical support level and appears set up for a reversal. The pattern in play is a head-and-shoulders formation that could be confirmed by month’s end.
The risk is that institutions, which sold on balance late in the quarter, continue to reposition and push shares below the long-term 150-week exponential moving average. In that case, Oracle’s price could fall as low as $145, but a fresh low is not expected. Trading data show that institutions provided substantial support when ORCL shares were at their lows in Q1 and early Q2.
The more likely scenario is that ORCL remains range-bound near current levels until catalysts begin to emerge. As for those catalysts, earnings reports are expected to reaffirm the outlook, news from other hyperscalers should also be positive, and Oracle’s AI World conference is scheduled for late October. The event will feature keynote addresses and new product launches that could help lift investor sentiment.
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