Cerebras Closes at $256.78 After $386.34 IPO Spike as Investors Weigh AI ETF Alternative
Updated
Updated · The Motley Fool · May 27
Cerebras Closes at $256.78 After $386.34 IPO Spike as Investors Weigh AI ETF Alternative
4 articles · Updated · The Motley Fool · May 27
$256.78 was Cerebras' closing price on May 22, down from a $386.34 intraday peak after the AI chipmaker's IPO priced at $185 earlier this month.
That pullback still leaves the stock at rich valuations—611.4 times trailing earnings and 9,534 times operating cash flow—making direct exposure hard to justify for some investors.
Cerebras pitches its CS-3 wafer-scale accelerator as a GPU-cluster alternative, citing third-party analysis showing it ran Llama 3 70B 21 times faster than Nvidia's Blackwell B200.
$10 billion Global X Artificial Intelligence & Technology ETF offers a lower-risk AI route instead, with a 0.68% expense ratio and top holdings including Nvidia, Broadcom and Micron.
The appeal reflects a broader AI market expected to expand from $390.9 billion in 2025 to $3.5 trillion by 2033, favoring diversified exposure over a volatile new listing.
With huge losses and reliance on OpenAI, can Cerebras’s record-breaking chip achieve profitability?
Can Cerebras's hardware overcome Nvidia's powerful CUDA software ecosystem to win the AI chip war?
If AI chips are getting so much faster, why isn't overall economic productivity booming yet?