ARK Invest Doubles Down on Cerebras After Nvidia Rival's Earnings-Driven Selloff

Cathie Wood's ARK Invest continued its buying spree in Nvidia (NVDA) rival Cerebras Systems (CBRS), scooping up $28.02 million worth of shares on August 13 after the AI chipmaker's stock took a hit following its earnings report.

The purchase, which was split between the ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW), comes as Wall Street sees Cerebras' post-earnings decline as a buying opportunity. Mizuho and UBS both lowered their price targets for CBRS but viewed the drop as a chance to invest.

Cerebras reported adjusted earnings per share of $0.05, beating estimates, with revenue coming in at $209.9 million, ahead of consensus. However, the company's adjusted gross margin fell to 40.6% from 46.5%, driven by higher costs to rent computing capacity.

Cerebras is expanding its manufacturing capacity, expecting a tenfold increase this year, and sees growing demand for its AI systems. The company raised its full-year revenue outlook to $880 million to $890 million, above previous forecasts.