CBRS Stock Surges 68% On Nasdaq Debut: Cathie Wood's ARK Buys Shares While Trimming TSMC, AMD

• Cerebras shares opened at $350, up from its $185 IPO price, and closed up 68% at $311.07.
• Cerebras develops giant AI chips and supercomputers designed to train and run AI models much faster than traditional GPUs, and is seen as a challenger to Nvidia.
• Stocktwits sentiment for CBRS was ‘extremely bullish.’

Cerebras Systems Inc.’s shares gained 68% from their initial public offering price on the first day of trading on Thursday, catapulting the chip company’s market capitalization to about $95 billion.

CBRS stock closed at $311.07. Cerebras sold stock at $185 apiece – much higher than its indicated range of $150 to $160, although shares opened at $350 before slipping later. The stock gained a further 6% in overnight trading heading into Friday.

Cathie Woods Buys CBRS

On Thursday, Cathie Wood’s ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) acquired 105,616 shares of Cerebras, according to their trading updates. That implies a stake worth $32.8 million as of Wednesday’s close.  

Notably, the ARK funds trimmed stakes in Taiwan Semiconductor Manufacturing Co. and Advanced Micro Devices.

Cerebras sold 30 million shares and raised $5.6 billion in its IPO, which was reportedly oversubscribed by more than 20 times. 

AI Chip Boom

The strong IPO demand and first-day rally highlight the intense investor appetite for AI hardware firms, as Big Tech companies pour record levels of spending into AI development and data center expansion.

Cerebras develops giant AI chips and supercomputers designed to train and run artificial intelligence models much faster than traditional GPUs. The Sunnyvale, California-based company clocked $510 million in sales last year, up from $290.3 million in 2024.

Earlier this year, Cerebras signed a deal to partner with OpenAI in integrating its technology into OpenAI’s compute systems. Other customers listed on its website include Meta, AWS, and IBM.

Chips stocks in particular are the flavor of the season. Intel, Advanced Micro Devices, and Micron have notched triple-digit gains this year, with the iShares Semiconductor ETF (SOXX) gaining 75%.

Retail View On CBRS

On Stocktwits, retail sentiment for CBRS was at the highest possible level, ‘extremely bullish’ (100/100). Although the long-term outlook is upbeat, some traders believe the stock is overvalued.

“$CBRS honestly surprised this has held as well as it did today. No position still but patiently waiting for an entry,” said a trader. Another wrote: “lots of shorts out! Better cover.”

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