Steve Hou
Head of Research at Silicon Data, AI Compute Markets
Cerebras risks falling further if the market takes a breather, because stocks that IPO in a red-hot bull market tend to get bid far above fair value and then drop precipitously, as Arm's IPO showed; Cerebras has already fallen some. Investors upset about missing an allocation should remember this, echoing @ram's point, relayed by @dee_bosa, that every stock gets back to its IPO price. x.comÂ
Cerebras still needs to come down further before it is worth buying. IPO stocks often rise sharply at first, then fall, and can take a long time to return to their original value, so entering at an expensive price right after the IPO is unappealing. The view is not entirely negative on Cerebras, and it should not be called a direct Nvidia rival. x.comÂ
Cerebras has fallen more than 50% from its IPO highs, like every other hot deal, and its investor event did not deliver the news longs wanted. FOMO buying into the IPO proved deadly. x.com x.comÂ
Cerebras is now worth buying after its shares fell into the previously stated $60-$120 buying range. The earlier concern was an out-of-control valuation and providing liquidity to insiders at much higher prices; the shares shown are about $117. x.comÂ
Cerebras likely needs more time despite heavy bullishness around its earnings and a nice breakout on its recent-IPO chart. Last quarter's earnings disappointed, so a sudden blowout quarter was unlikely. x.comÂ
Cerebras is a dud that looks set for new lows. It went public into a red-hot semiconductor sector and still failed, and with semiconductors now rolling over, it looks poised to break major support. x.comÂ
Vicor's efficient delivery of key power modules is part of the case for Cerebras meeting and exceeding its 2028-29 numbers. As models improve, more security breaches and deployments should make Cerebras look increasingly like a cybersecurity play. Its revenue ramp looks constrained by capacity, not yet by demand. Bullish on Cerebras but cautious on the broader market, with no short-term earnings prediction. x.com x.com x.com x.comÂ
Cerebras is difficult for retail investors to understand, and management has not done a great job explaining its business since going public. It deserves more attention as the most direct AI IPO of 2026, but going long Cerebras is hard to justify when Nvidia can be owned instead. x.comÂ
Cerebras is a poor bet after spiking from its $185 IPO open into the $300s. Some 55-65% of IPOs trade below their offer price after a year, and the jump makes those odds even worse. The valuation was already extremely rich and depends on future growth going well with great execution from management. x.comÂ
Cerebras may be the only company willing to stitch together a true high-speed solution. If so, it retains upside optionality from high-speed pricing and gains a first-mover advantage. x.com x.comÂ
Cerebras shows the danger of chasing hot IPOs: buyers after its 100% first-day jump became exit liquidity for big sellers, and the stock has now given back nearly all of its post-IPO gains. x.comÂ
