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Cerebras Shares Rise 89 Percent in Nasdaq Debut
Cerebras Systems opened at $350 per share on its first day of trading, above the $185 IPO price that raised $5.55 billion. The Sunnyvale, California-based chip designer reached a fully diluted valuation of $106.75 billion. The company, founded in 2015, designs wafer-scale processors for artificial intelligence training and inference.
May 14, 1:30 PM·1m read1 source
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Shares of chip designer Cerebras Systems rose 89 percent above the initial public offering price in Nasdaq trading on Thursday. The stock opened at $350, compared with the IPO price of $185 per share at which the company raised $5.55 billion. That opening gave the Sunnyvale, California-based firm a fully diluted market value of $106.75 billion.
The IPO is the largest so far this year. It occurs as stocks linked to artificial intelligence have pushed broader markets to record highs. The gains have continued despite challenges to global growth from conflict in the Middle East. Cerebras Systems was founded in 2015.
The company designs chips roughly the size of a dinner plate to accelerate artificial intelligence processing. Its wafer-scale engine packs hundreds of thousands of compute cores onto a single processor rather than relying on clusters of interconnected chips.
The listing marks the company's second attempt to go public after it dropped plans last year. The committee later cleared the arrangement. Since then the company has added Amazon and OpenAI as customers. Both are among the largest builders of artificial intelligence infrastructure.
The company raised the size and price range of its offering earlier this week amid strong investor interest. Sources reported that the IPO drew orders for more than 20 times the number of shares available. The company said its technology supports both artificial intelligence training and inference.
Demand for faster artificial intelligence systems has led technology companies to invest hundreds of billions of dollars in related infrastructure. The Dow Jones U.S. Semiconductors Index, which includes companies such as Nvidia, Qualcomm and Intel, has gained more than 107 percent over the past year. That compares with an approximate 26 percent rise in the S&P 500 over the same period.
