The strength of the AI trade was underscored by AI chipmaker Cerebras’s IPO yesterday, which saw the stock soar 68% in its debut yesterday.
AI infrastructure stocks are rocketing higher, and the chipmaker couldn’t have picked a better time to go public. After listing at $185, Cerebras finished the day at $311, valuing the company at $95 billion.
The company raised $5.5bn to accelerate the growth of its AI chips that are designed to be faster than alternatives.
Cerebras Systems builds high-speed AI infrastructure around its Wafer-Scale Engine 3 (WSE-3), a processor 58 times larger than a leading GPU, delivering inference up to 15 times faster on open-source models while using a fraction of the power.
The company’s customers span corporations, research institutes and governments across four continents, with deployment available on-premises and in the cloud.
Cerebras generated $510m in revenue last year and reported earnings of $238m. The market cap looks eyewateringly high at $95bn, but given the sector’s growth pace, they may justify it in the coming years.