Cerebras Systems Experiences Significant Stock Fluctuation
Shares of Cerebras Systems (NASDAQ: CBRS), an artificial intelligence chipmaker, surged 68% on its debut on May 14, 2023, but have since fallen over 22%. As of now, the company’s remaining performance obligations total $24.6 billion, largely due to a $20 billion deal with OpenAI for up to 750 megawatts of capacity to be delivered through 2028.
Cerebras is known for its unique wafer-scale engine technology, which integrates an entire 12-inch wafer, allowing for increased data processing speed. The company recently showcased its Kimi K2.6 model running across 20 systems, claiming outputs 6.7 times faster than competitors. However, significant risks, including dependency on Taiwan Semiconductor Manufacturing for production and potential execution challenges, raise concerns about its ability to scale operations and meet customer demands.
The market cap of Cerebras stands at around $55 billion, with a price-to-sales ratio of approximately 108 times expected 2025 sales, a stark contrast to Nvidia’s 9.5 times, reflecting uncertainty in Cerebras’s future revenue growth.
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