Cerebras Systems shares dropped 4.7% in morning trading on Monday after TD Cowen reduced its price target on the AI chipmaker to $175 from $275 while keeping its Buy rating.

The new price target represents the largest cut among the 11 analysts who currently cover the stock. TD Cowen published its note before the market opened on Monday.

The stock retreated after a brief early recovery from Friday's session low.

Cerebras has faced mounting pressure in recent weeks after reports emerged that OpenAI's "Ultrafast" GPT-6.1 Sol inference tier operates on Nvidia GPUs instead of Cerebras' proprietary wafer-scale hardware. OpenAI accounts for the largest portion of Cerebras' contracted backlog.

Chief Executive Officer Andrew Feldman and Chief Technology Officer Sean Lie sold more than $240 million in Class A shares between August and late September through pre-arranged trading plans.

A staggered post-IPO lockup expiration also released approximately 19.4 million additional shares for potential sale.