On May 14 (local time), AI chip developer Cerebras Systems made its public debut on Nasdaq through an Initial Public Offering (IPO) priced at $185 per share, raising approximately $5.55 billion. This IPO stands as the largest in the United States since 2026. On its first trading day, the stock opened at $385 per share, only to drop by 10% the following day. Nevertheless, by the end of the week, the share price had soared 51% above its IPO price, giving the company a market capitalization of $60.2 billion.
Established in 2016, Cerebras Systems initially pulled its IPO application after its first submission in September 2024. However, it managed to achieve profitability in the fiscal year 2025. Its flagship product, the WSE chip, is recognized as the largest computer chip ever produced. The latest WSE-3 model boasts 19 times more transistors and 28 times the computing power of Nvidia's B200.
However, the company is confronted with several risks. From a technical standpoint, its chip has a relatively limited memory capacity, supporting a maximum context length that falls significantly short of the flagship large models currently available in the market. Financially, despite securing a cooperation agreement valued at over $20 billion with OpenAI, its revenue stream is excessively dependent on a single client. Additionally, equity transactions are anticipated to diminish its income. It is projected that the company will experience a deceleration in quarterly revenue growth and a decline in gross margins in 2026.