Cerebras IPO Euphoria Sends CBRS Stock Into Rare Air

After a highly anticipated run-up, shares of Cerebras Systems (CBRS) debuted on May 14 with one of the craziest AI initial public offering (IPO) debuts ever seen in the markets. Demand for CBRS stock was simply incredible amidst all of the ongoing enthusiasm around next-gen AI infrastructure. Shares debuted at an already elevated price of $185, which made Cerebras one of the most expensive stocks ever to go public.

The price action quickly turned things upside down with shares reaching beyond $350 during the first moments of trading. The stock quickly gained momentum with orders far exceeding total available shares. It was later rumored that both Arm Holdings (ARM) and SoftBank (SFTBY) discussed a potential acquisition of Cerebras prior to the actual IPO going ahead independently.

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About Cerebras Systems Stock

Based in Sunnyvale, California, Cerebras Systems is primarily focused on providing AI accelerators, wafer-scale processors, inference systems, and AI infrastructure deployments. The WSE-3 processor is described as an alternative to Nvidia (NVDA) GPU cluster-based technology. According to the firm, the product features a significantly larger design compared to its competitors and provides superior inference performance with increased energy efficiency.

Price action in Cerebras stock has been highly volatile since it started trading publicly. Despite briefly touching a high price of $386.34, CBRS stock fell back to levels closer to the $250 to $300 range following an adjustment period. Nonetheless, even at this reduced price, the company has an extraordinary sales valuation multiple of 118 times. This valuation puts Cerebras above the vast majority of comparable semiconductor companies.

Nonetheless, the reasons for this extreme valuation are well grounded. Annual revenue jumped from $290.3 million in 2024 to $510 million in 2025, marking a huge jump of 76%. More impressively, gross margin expanded from only 12% in 2022 to 39% by 2026, demonstrating rapid business growth compared to earlier estimates.

Cerebras Systems Lands a $24.6 Billion Backlog

Despite many of these metrics being highly optimistic, the reason for such a rapid rise in CBRS stock is very clear. Namely, the company revealed a whopping $24.6 billion in backlog at the end of 2025. That's a figure that could not possibly be ignored by Wall Street analysts. More importantly, the firm recently landed an estimated $20 billion deal with OpenAI to deliver AI servers utilizing Cerebras' proprietary processors in the coming three years.