Cerebras Set for Record IPO as AI Infrastructure Demand Surges Cerebras, a semiconductor chip designer specializing in AI inference workloads, is poised to become one of the largest IPOs of 2026. The company, which was founded in 2015 and employs fewer than 800 people, is expected to raise $4.8 billion after increasing its share price target to $150-160 per share from $115-$125. If priced at the new range, Cerebras would be valued at nearly $50 billion, surpassing its March 2025 IPO filing valuation of $33.6 billion. The IPO is scheduled to price late Wednesday, with trading set to begin Thursday. The AI boom has positioned Cerebras at a strategic advantage. Major labs like OpenAI and Anthropic are aggressively seeking hardware to support AI development, training, and deployment. This demand has driven significant gains in AI hardware stocks, including SanDisk, which saw shares rise nearly 4,000% over the past year. The Morningstar US Semiconductors Index has surged 124% in the last 12 months and over 400% in three years, with Nvidia emerging as a standout performer. Cerebras’ technology focuses on AI inference workloads, which involve running live AI models that users interact with. Its chips are designed with a “fault-tolerant” architecture that allows manufacturing flaws to be bypassed, ensuring high performance. The company also uses SRAM memory, enabling faster query responses. Analyst Brian Colello of Morningstar notes that Cerebras’ partnerships with OpenAI and Amazon Web Services have bolstered its position in high-speed AI applications. However, the company faces intense competition, particularly from Nvidia’s Groq business unit, which also targets AI inference using SRAM memory.#nvidia #abu_dhabi #amazon_web_services #openai #cerebras
