Cerebras Systems, a Nvidia Competitor, Files IPO Prospectus
Cerebras Systems, a Nvidia Competitor, Files IPO Prospectus
The six-year-old company was founded by Andrew Feldman, who sold his server startup to Advanced Micro Devices
Cerebras Systems has filed a prospectus for initial Public Offering.
The chipmaker, a competitor to Nvidia, has seen significant revenue growth.
Cerebras will trade under the ticker symbol “CBRS” on the Nasdaq.
Cerebras files prospectus for IPO
Cerebras Systems filed a prospectus with the Securities Exchange Commission yesterday for an initial public offering (IPO). The filing comes just a month after doubts were raised amid a market sell-off that hit semiconductor stocks especially hard, including Nvidia (NVDA).
The company is nearly six years old and was founded by Andrew Feldman, who made millions after he sold his server startup to Advanced Micro Devices (AMD) in 2012. Cerebras is partially backed by the Abu Dhabi Growth Fund and makes wafer-sized chips that outcompete Nvidia’ chips.
The prospectus notes the Cerebras stock will trade under the ticker symbol “CBRS” on the Nasdaq. Citigroup and Barclays are the lead underwriters on the offering. Major investors include Foundation Capital, Benchmark, Eclipse Ventures, Alpha Wave, Coatue and Altimeter.
Cerebras will potentially be the hottest listing of the year after a multi-year dry streak for the IPO market. Earlier this year, Reddit (RDDT) and Rubrik (RBRK) listed on the New York Stock Exchange (NYSE), marking a turnaround for public listings.
In September, the sell-off in Nvidia put markets on edge and the IPO market along with it. NVDA fell nearly 14% in the first week of September. However, since then, Nvidia stock, along with the broader market has stabilized.
The prospectus not only mentions Nvidia as a competitor but AMD and Intel (INTC) as well. The pursuit of dominance in artificial intelligence has pushed a surge of capital into these names, with investors chasing an emerging industry that has near limitless potential.
Cerebras sees rapid growth in AI computing ahead of IPO
Cerebras expects the AI computing market to grow to $453 billion by 2027, which would be up from the $131 billion this year. That represents a compounded annual growth rate (CAGR) of 51%, according to the filing. The company is already capturing market share.
The prospectus highlights rapid revenue growth, rising to $78.7 million for the year ended 2023, up 220% from $24.6 million in 2022. For the six months ended June 30, 2024, revenue was $136.4 million. Despite heavy investment, the operating loss fell 28% year-over-year from 2022 to 2023. The reduction in 2024 for the first six months vs. 2023 saw a 14% reduction in net losses.
Cerebras could start trading in the coming weeks and may mark one of the hottest IPOs in years.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.