Cerebras (CBRS) shares are down at the time of writing after a huge IPO debut that made it the biggest public listing of 2026 so far. The AI chipmaker’s stock is down about 5% after surging more than 68% on Thursday, when shares closed at $311.07 following an intraday high near $385. The company priced its IPO at $185 per share and raised $5.55 billion by selling 30 million shares, which shows that investor demand is still strong for AI infrastructure stocks.
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Trade NVDA with leverageEven with Friday’s pullback, Cerebras’ debut was still a major win for the AI IPO market. The big question now is whether Cerebras can grow into its valuation of roughly 125 times trailing sales. Importantly, the company competes in the AI chip market with Nvidia (NVDA) and AMD (AMD), but it uses a different wafer-scale chip that is designed to speed up AI workloads. Indeed, its chips are much larger and use SRAM, which is faster but more complex and expensive than the DRAM used in many traditional systems.
Because the chip is so large, Cerebras has space to use more of that faster memory while also reducing the distance that data needs to travel. The company says this can make AI responses up to 15 times faster than leading GPU-based systems. As a result, investor enthusiasm is clearly high, especially after the IPO was more than 20 times oversubscribed, but the early slide shows traders may already be taking profits after the massive first-day rally. Nevertheless, it’s worth mentioning that Nvidia and AMD shares are down today as well.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $280.31 per share implies 23.6% upside potential.
