Cerebras Systems

CBRS

Market cap $63.8B

The semiconductor trade is starting to get just a bit overheated once again as the cohort leads to a reinvigoration of sorts in the AI trade.

Cerebras boasts real technology, a $24.6bn RPO backlog, and a marquee OpenAI partnership but trades at 18x FY28E sales, pricing in flawless execution. Customer concentration remains high, with UAE entities comprising 86% of FY25 revenue; OpenAI offers diversification but introduces new concentration risk. The OpenAI relationship is both a moat and a binary risk; if OpenAI shifts inference in-house, CBRS loses a key customer and strategic influence.

When Lior Susan started Eclipse Ventures in 2015, the firm's thesis of digitizing the physical world wasn't particularly popular in Silicon Valley.

Cerebras Systems has seen a very successful public offering. Investors like the rapid order intake and potential to compete with Nvidia. Recent commercial traction is not seen in historical financials, which means that the company has lots to prove.

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Jon Quast, Matt Frankel, and Rachel Warren discuss:

Today, Cerebras Systems is a public company that sells AI chips for inference to giants like OpenAI and AWS. It held a blockbuster IPO on Thursday, with both of its co-founders billionaires, and ended the week worth about $60 billion.

Now that Cerebras has hit the public markets, investor attention is turning to SpaceX, OpenAI and Anthropic, which is a challenge for the rest of the IPO pipeline. "It's very hard to care about anything other than the $3 trillion potential IPOs that, in theory, are going to happen in the next year," said Sam Lessin, a partner at, Slow Ventures.

Cerebras Systems offers the WSE-3, the largest commercial AI processor, targeting high-demand inference workloads with major clients like OpenAI and hyperscalers. CBRS is valued at ~$67 billion post-IPO, but faces upcoming gross margin and revenue growth pressures from contra-revenue and dilutive warrant impacts starting Q1 2026. Despite a strong $24.6 billion RPO backlog, CBRS's long-term market is likely niche, with use cases and TAM/SAM smaller than Nvidia's.