Cerebras Targets $3.5B in IPO, Challenging Nvidia's AI Chip Dominance

Cerebras Systems, a direct rival to Nvidia in the AI chip market, is targeting $3.5 billion in its U.S. initial public offering. The Sunnyvale, California-based company plans to sell 28 million shares priced between $115 and $125 each, marking its second attempt after withdrawing a filing last October.

Known for its wafer-scale engine chips, Cerebras accelerates the training and inference of large AI models, placing it at the heart of the surging demand for high-performance semiconductors. As companies race to build AI infrastructure, chipmakers have become key beneficiaries.

Cerebras reported revenue of $510 million for the fiscal year ending December 31, up from $290.3 million a year earlier. The company posted a profit of $1.38 per share, a sharp reversal from a loss of $9.90 per share the prior year.

Morgan Stanley, Citigroup, Barclays, and UBS are leading the underwriting.