Cerebras Systems Closes First Day of Nasdaq Trading With $95 Billion Market Value

Cerebras Systems closed its first day of trading on Wall Street with a market cap just below $100 billion. The AI chipmaker popped 68 percent in its Nasdaq debut, pushing its market capitalization to $95 billion and placing it near the few companies to close above that mark, such as Facebook-parent Meta and Alibaba. Its monster debut on Thursday did not just rank among tech's biggest-ever IPOs.

The stock traded lower on Friday, its first full day of trading. Cerebras makes a chip the size of a dinner plate. "We build the biggest chips in the semiconductor industry," Andrew Feldman said. "Big chips process more information in less time and deliver results more quickly," Feldman added.

Cerebras' WSE-3 is 57 times larger than the largest GPU and has 50 times the number of transistors as the largest GPU. The most advanced AI chips are made using Taiwan Semiconductor Manufacturing's 2-nanometer process node, while Cerebras' chip is made at TSMC on its 5-nanometer node. Cerebras was founded in Silicon Valley in 2016.

It first filed to go public in 2024 but withdrew its 2024 IPO submission when it faced scrutiny for its heavy reliance on a single customer, Microsoft-backed AI firm G42 in the United Arab Emirates. With the firm's successful IPO on Thursday, Feldman and hardware technology chief Sean Lie, two of its co-founders, became billionaires based on their holdings.

Cerebras and OpenAI announced a $20 billion cloud deal in January that expires in 2028.

Amazon Web Services announced in March that it's using Cerebras chips in its data centers. "For our fast inference product, there's so much demand that our biggest challenge is actually trying to supply it. We are adding as much manufacturing and data center capacity as we possibly can, and we're still sold out into 2027," Cerebras CFO Bob Komin said.