What happened: Cerebras Systems (CBRS) stock was down 3% premarket on Friday after surging more than 68% the previous day in a highly anticipated public debut by an Nvidia (NVDA) competitor.
Shares closed at $311.07 Thursday after reaching an intraday high of $385 each.
By the numbers: The stock opened at $350, nearly double its IPO price of $185. The price surge sent the company’s market capitalization to almost $70 billion based on the outstanding shares disclosed in regulatory filings. On a fully diluted basis, including restricted shares, stock options, and warrants, the valuation was closer to $86 billion, according to Bloomberg data.
What else you need to know: Cerebras stock started trading under the ticker symbol CBRS.
The listing marks the largest IPO of the year so far and underscores continued momentum in the AI semiconductor space as companies race to challenge heavyweight Nvidia.
“We built a chip the size of a dinner plate. It’s 58 times larger than any chip previously built,” Cerebras CEO Andrew Feldman told Yahoo Finance on Thursday morning, noting that in AI, bigger chips process information more quickly.
“We’re more than 15 times faster than the competition,” he added.
Cerebras had initially marketed 30 million shares at $150 to $160 apiece after earlier increasing both the size and price range of the offering. Investor appetite for the IPO was exceptionally strong, with demand exceeding available shares by more than 20 times, according to Bloomberg.
Cerebras has established partnerships across the AI industry, including collaborations with Amazon (AMZN) and OpenAI (OPAI.PVT). Earlier this year, OpenAI launched its first AI model running on Cerebras chips.
