Why is Cerebras Systems stock sliding today? By Investing.com

Cerebras Systems shares slid 4.7% in morning trading after TD Cowen maintained its Buy rating but cut its 12-month price target nearly in half, from $275 to $175. The reduction was the steepest among the 11 analysts covering the stock and followed a brief early bounce after Friday’s low. The note adds to a selloff pressure building over weeks. Confidence has been hit by reports that OpenAI’s “Ultrafast” GPT-6.1 Sol inference runs on Nvidia GPUs instead of Cerebras’ wafer-scale hardware, despite OpenAI being the largest part of its contracted backlog. Separately, CEO Andrew Feldman and CTO Sean Lie sold more than $240 million in Class A shares, and lockup expirations released about 19.4 million more shares into potential supply.