NVDA Rival Cerebras Bumps Up Its IPO Range, Targets $48.8B Valuation

• Cerebras could be worth up to $48.8 billion based on the new price range. 
• Initially, Cerebras planned to sell 28 million shares at $115-$125, targeting $3.5 billion before investor interest boosted the offering.
• Cerebras now plans to sell 30 million shares.

Cerebras Systems, the semiconductor startup challenging Nvidia’s (NVDA) dominance in the artificial intelligence chip market, on Monday raised the target price range for its initial public offering, signaling robust investor appetite for AI infrastructure. 

Cerebras is looking to list at $150 to $160 per share, according to a Monday filing, up from the $115 to $125 range it disclosed last week. 

With the updated IPO price range, Cerebras is set to generate as much as $4.8 billion in capital. This move brings the company's potential fully diluted market valuation to $48.8 billion, a significant jump from the $23 billion valuation established during its funding round in February.

The company is preparing to list its shares on the Nasdaq Global Select Market under the ticker symbol "CBRS" as early as May 14. 

Cerebras has positioned itself as a primary alternative to Nvidia by offering an AI hardware architecture separate from what Nvidia offers. Its flagship "Wafer-Scale Engine" is a single, massive chip the size of a dinner plate, designed to handle the immense computational requirements of large language models more efficiently than clusters of traditional processors.

What Does Cerebras Financial Show?

Financial disclosures included in Monday’s filing show revenue of $270.3 million for the first nine months of 2025, a significant jump from the $75.2 million reported during the same period a year earlier. Despite strong revenues, the company posted a net loss of $56.4 million for the recent nine-month period.

A significant portion of the company’s recent growth is tied to G42, an Abu Dhabi-based AI tech holding company, which accounted for 86% of Cerebras’ revenue last year. 

Cerebras’ AI Deal With DGXX

Digi Power X (DGXX) recently announced that it had struck a multi-billion-dollar deal with Cerebras Systems (CBRS) to provide up to 40 megawatts (MW) of compute power for the colocation of an AI data center campus on a property it already owns in Columbiana, Alabama.

The initial 10-year term is valued at about $1.1 billion, with a total potential contract value of up to $2.5 billion, inclusive of renewal terms. Digi Power will start constructing the data center campus in two phases – with the first phase bringing online 15 MW of computing power by mid-December this year, and the second phase bringing the remaining 25 MW by the end of the first quarter of 2027.

Cerebras And OpenAI Deal

OpenAI had struck a deal worth over $10 billion with Cerebras in January this year, and the ChatGPT maker separately has warrants that allow it to buy over 33 million shares in the company.

OpenAI is integrating Cerebras's Wafer-Scale Engine (WSE) to handle high-speed inference. This technology enables OpenAI to drastically reduce latency for long-form model outputs (such as complex coding or reasoning tasks). 

Amazon Web Services (AWS) had also signed a deal in March to use the company’s chips for its data center

CBRS Retail View 

Retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volumes. 

One user asked whether Cerebras is an underpriced play in the AI game or whether investors have already validated it as an important AI infrastructure node. 

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