This year is turning out to be big for initial public offerings, particularly in the technology industry. And one of the first to complete its operation was Cerebras Systems (NASDAQ: CBRS) just last month. The company is present in a very exciting ****** e, that of artificial intelligence (AI) chips, and aims to compete with a market giant -- Nvidia.
Investors clearly have been optimistic about Cerebras' prospects as the stock soared 68% in its first day of trading -- though it has declined from its peak. Now the question is: At today's level, is Cerebras a buy, a hold, or a sell post-IPO? Let's find out.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So, first, let's talk a bit about Cerebras. AI workloads require tremendous power, and various companies develop chips that offer this. Nvidia has stood out from the bunch as it designs the world's top-performing graphics processing units (GPUs). And now, Cerebras says it has a chip that's even faster than those of the market leader.
Cerebras' processor is called the Wafer-Scale Engine (WSE), and its strength is in its size. The WSE is 58 times bigger than Nvidia's leading chip and has more than 2,000 times the memory bandwidth of a "package" that includes two Nvidia chips. Cerebras says that by packing an enormous amount of compute and memory onto one chip, it's able to deliver greater speed for AI customers.
Investors clearly have been optimistic about Cerebras' prospects as the stock soared 68% in its first day of trading -- though it has declined from its peak. Now the question is: At today's level, is Cerebras a buy, a hold, or a sell post-IPO? Let's find out.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So, first, let's talk a bit about Cerebras. AI workloads require tremendous power, and various companies develop chips that offer this. Nvidia has stood out from the bunch as it designs the world's top-performing graphics processing units (GPUs). And now, Cerebras says it has a chip that's even faster than those of the market leader.
Cerebras' processor is called the Wafer-Scale Engine (WSE), and its strength is in its size. The WSE is 58 times bigger than Nvidia's leading chip and has more than 2,000 times the memory bandwidth of a "package" that includes two Nvidia chips. Cerebras says that by packing an enormous amount of compute and memory onto one chip, it's able to deliver greater speed for AI customers.
3 months ago
