AI chipmaker Cerebras Systems (CBRS) debuted on the Nasdaq on May 14. The stock priced at $185 per share. The IPO raised over $5.5 billion, marking one of the largest U.S. tech offerings in recent years. The company positions itself as a pure-play AI hardware challenger to Nvidia.
Shares surged during the first trading day before experiencing a pullback. Analysts on May 18 cautioned that the current valuation is over-heated. The company faces risks from high customer concentration and its reliance on OpenAI.
Cathie Wood’s ARK Invest accumulated a significant number of shares following the debut. S&P Dow Jones Indices added Cerebras to its indices effective May 18. This move is expected to generate substantial demand from passive investment funds.