Cerebras almost doubles in Nasdaq debut, topping $100 billion market cap after blockbuster IPO

Cerebras Programs soared in its Nasdaq debut on Thursday, opening at $350 after promoting shares at $185, properly above the corporate’s anticipated vary. That values the chipmaker at over $100 billion.

The corporate bought 30 million shares in its providing late Wednesday, elevating $5.55 billion, the most important IPO for a U.S. tech firm since Uber’s debut in 2019. If underwriters train their possibility to purchase 4.5 million extra shares, whole proceeds may attain $6.38 billion.

After peaking at above $385, the inventory drifted decrease Thursday afternoon to about $310, bringing the market cap to $95 billion.

Cerebras, primarily based in Silicon Valley, is benefiting from the bogus intelligence growth, which has lifted large swaths of the semiconductor house in latest months, with Intel, Superior Micro Gadgets and Micron all notching triple-digit features this 12 months. The VanEck Semiconductor ETF has jumped 58% thus far in 2026.

The rise of AI brokers that may routinely full duties has boosted demand for Nvidia’s dominant graphics processing models, in addition to extra conventional central processing models.

Cerebras is the most important pureplay AI IPO to hit Wall Road and the primary notable tech providing in months, because the market has struggled to rebound from the downturn that started in 2022, when inflation started hovering. However traders could possibly be in for a wave of historic IPOs with a deal with AI. Elon Musk’s SpaceX, which merged with AI firm xAI in February, is gearing up for a share sale, and mannequin builders OpenAI and Anthropic may hit the market later this 12 months.

There have been solely 31 tech IPOs in 2025, down from 121 4 years earlier, based on knowledge from College of Florida’s Jay Ritter, an IPO skilled.

Income at Cerebras jumped 76% final 12 months to $510 million. The corporate generated internet revenue of $88 million, swinging from a lack of $481.6 million a 12 months earlier.

Cerebras’ most formidable competitor in {hardware} is Nvidia, the world’s most dear firm. Cerebras claims pace and value benefits over graphics processing models from Nvidia as a consequence of structure variations. In December, Nvidia paid $20 billion for belongings from startup Groq, whose chips extra intently resemble Cerebras, and months later introduced plans for Groq-based merchandise.

The IPO course of for Cerebras has been lengthy and winding. In September 2024, the corporate filed to go public, however withdrew its submission a bit over a 12 months later after its prospectus was closely scrutinized due largely a heavy reliance on a single buyer in the United Arab Emirates, Microsoft-backed G42.

Cerebras refiled to go public in April. In its refreshed prospectus, the corporate stated 24% of income final 12 months got here from G42, down from 85% in 2024. Nevertheless, Mohamed bin Zayed College of Synthetic Intelligence in the UAE accounted for 62% of income final 12 months.

“There’s some whales on the market, there’s some actually large prospects,” Cerebras CEO Andrew Feldman informed CNBC in an interview on Thursday. “That is likely one of the traits of this market.”

Relating to the college work in UAE, Feldman stated, “We’re coaching fashions collectively,” including that they are “English-Arabic fashions.”

“They’re the primary college arrange and devoted to coaching AI practitioners,” Feldman stated.

Feldman, who co-founded the corporate in 2016, holds about 5% of voting energy in the corporate and a stake value near $2 billion on the IPO value. Constancy controls about 11%, whereas enterprise agency Benchmark has 9%.

Cerebras had began shifting its focus away from promoting {hardware} techniques and extra towards offering a cloud service primarily based on its chips. Which means it is going up in opposition to cloud suppliers akin to Google and Microsoft, that are each listed as opponents, together with Oracle and CoreWeave.

Cerebras is working to diversify, saying a cloud take care of OpenAI in January value greater than $20 billion that expires in 2028. In March, cloud infrastructure chief Amazon Internet Companies stated it will arrange Cerebras chips in its knowledge facilities so builders can shortly run AI fashions, offering one other avenue to succeed in new prospects.

Amazon and OpenAI each have warrants to buy Cerebras inventory.

The IPO was led by Morgan Stanley, Citigroup, Barclays and UBS.

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