Shares of rival Nvidia soared nearly 90% after the biggest IPO of the year

Shares of AI chip maker Cerebras Systems soared 89% after its IPO on the Nasdaq exchange on May 14. With the offering at $185 per paper, the price at the start of the debut trades reached $350, so the market capitalization of the company exceeded $100 billion, notes CNBC. Such a jump in listings of more than $2 billion has not been seen in 26 years, Bloomberg calculated.

Then the growth slowed down a bit, at the time of publication of this text shares of the chipmaker were trading at about $325. During the session trades were suspended due to high volatility, the agency reports.

As part of the listing, Cerebras sold 30 million securities for $5.55 billion, the largest offering of a U.S. tech company since Uber went public in 2019, CNBC recalls. The IPO was also a record among AI companies, surpassing Arm Holdings, which raised $5.23 billion in 2023, Bloomberg points out.

The debut of Cerebras attracted almost 60% more funds than originally planned, and the price was above the already increased range. Demand for the company's securities exceeded the offer 25 times, its CEO Endy Feldman told the agency. At the offering price of $185 per share, his stake in the company was valued at $1.9 billion.

Cerebras has joined a group of publicly traded AI semiconductor makers that are trying to challenge market leader Nvidia. It produces large chips that allow specialized computers to process huge amounts of data. At the same time, the companyclaims that its products outperform Nvidia's GPUs in terms of speed and cost due to the architecture. And the AI market is now increasingly focused on rapid query answering and high-speed runtime models, Bloomberg points out.

"We're 15 times faster than our nearest competitor, and now that AI has become really useful, everybody wants it to work fast. Nobody wants to wait," Feldman said.

This article was AI-translated and verified by a human editor