KEY POINTS
- Cerebras stands as a leader in artificial intelligence processors.
- Currently a private company, Cerebras could go public with an initial public offering (IPO) in late 2024.
- For most investors, buying Cerebras stock directly isn’t an option, but alternative stocks and ETFs can offer exposure to AI technologies.
Cerebras, positioning itself as a pioneer in creative artificial intelligence (AI), has attracted the attention of AI investors, engineers, and enthusiasts. In March 2024, Cerebras unveiled the third-generation 5nm Wafer Scale Engine (WSE-3), which was billed as the fastest AI chip on the market. It’s no surprise that Cerebras is attracting significant interest within the AI community.
Since OpenAI launched ChatGPT in late 2022, generative AI has become prominent and increasingly integrated into our daily lives. This trend shows no signs of slowing down. Bloomberg Intelligence forecasts the emerging AI market to grow from about $40 billion in 2022 to $1.3 trillion by 2032, boasting a strong compound annual growth rate (CAGR) of about 42 percent.
In addition to serving various government laboratories, Cerebras has a diverse customer base in the private sector. For example, the Mayo Clinic has partnered with Cerebras to develop AI models for healthcare.
Specific financial details about the partnership are limited, but Cerebras CEO Andrew Feldman called it a ‘multi-million dollar’ deal. Additionally, oil major TotalEnergies (TTE 0.49%) has engaged Cerebras to help with seismic modeling.
Investors interested in adding Cerebras to their portfolio should consider several important factors. They will need to find out how to buy Cerebra’s stock, estimate the timing of the company’s upcoming initial public offering (IPO), and evaluate other available investment opportunities.
Is Cerebras publicly traded?
Cerebras has secured multiple rounds of funding, attracting investment from institutions such as the Abu Dhabi Growth Fund and venture firm Benchmark Capital. After its Series F round in 2021, Cerebros had raised about $715 million in funding, as reported by Crunchbase.
However, individual investors have limited access to Cerebros shares as the company does not trade publicly until April 2024.
When will Cerebras IPO?
In 2023, there was a decrease in the number of companies going public compared to previous years. However, experts expect an increase in IPOs during 2024. Although Cerebral has not officially scheduled an IPO, there are speculations that it will debut on the stock market in 2024.
According to Bloomberg News, Cerebral has enlisted Citigroup (C 0.39%) to help with its IPO, which could happen by the second half of 2024. After its latest funding round in 2021, Cerebral could hit a valuation of more than $4 billion.
How to buy Cerebras stock 2024?
For many investors, acquiring Cerebras shares is not an option. However, accredited investors may have the opportunity to buy Cerebros stock ahead of its IPO through platforms like Forge Global (FRGE -2.14%).
If you don’t qualify as an accredited investor, you may think you’re out of luck with Cerebras stock. Still, there are many other AI stocks available to consider. Here’s a four-step guide to buying stocks.
Step 1: Open a brokerage account
Investing in stocks is a great way to build personal wealth. To get started, investors need to open a brokerage account. There are several options to choose from, but beginners may find Fidelity attractive, as it offers online trading with zero commissions.
Step 2: Figure out your budget
Experienced people understand that budgeting is very important for successful investing. Whether you have plenty of cash to start with or just a small amount, it’s important to assess your financial situation and decide on an appropriate budget.
Step 3: Research related companies
While everyday investors wait for Cerebras to go public and become accessible to them, there are many other stocks currently available that they can consider buying.
1. Nvidia
Potential investors considering Cerebras can also look at Nvidia (NVDA, 6.76%), a major player in AI and possibly Cerebras’ strongest competitor. Nvidia has been a leader in AI computing with its Hopper Tensor Core GPUs. In March 2024, Nvidia further enhanced its AI capabilities with the introduction of the X800 series of network switches.
These switches are described by Nvidia as a comprehensive networking platform for achieving generative AI at a trillion-parameter scale, which is essential for new AI infrastructures.
A top choice for potential investors eyeing Cerebras is Nvidia (NVDA, 6.76%), a major player in AI. Nvidia, known for its Hopper Tensor Core GPUs, has long dominated the AI computing sector. In March 2024, Nvidia bolstered its AI capabilities further with the introduction of the X800 series network switches.
These switches are described by the company as comprehensive networking platforms crucial for achieving generative AI at a trillion-parameter scale, shaping the future of AI infrastructure.
2. Qualcomm
Investors may find it more attractive to invest in a peer rather than a competitor. For example, Qualcomm (QCOM 0.66%) teamed up with Cerebras to offer investors an indirect way to participate in the potential of a private company.
In March 2024, Cerebras announced that it had selected Qualcomm’s Cloud AI 100 Ultra, a specialized AI inference card designed for generative AI and large language models, for better training and advanced AI capabilities. The CS-3 AI Accelerator can be completed.
It would be an oversimplification to describe Qualcomm as just an AI company. As a leading semiconductor firm, Qualcomm provides wireless solutions that are widely used in applications such as smartphones, vehicles, and Internet of Things devices.
The company has several growth opportunities on the horizon. In the meantime, investors can take advantage of the company’s dividend, which offers a forward yield of 1.9% until April 2024.
3. Astera Labs
Investors looking to capitalize on the AI semiconductor sector without waiting for Cerebras’ IPO can consider Astera Labs, which recently went public in March 2024. Astera Labs provides an intelligent connectivity platform designed for AI and cloud infrastructure, attracting many industry leaders as customers.
Raghav Nambiar, vice president of data center ecosystems and solutions at Advanced Micro Devices (AMD), emphasized the importance of its partnership with Astera Labs on PCIe technologies, next-generation AI, and increased bandwidth for high-performance computing. is important to meet the needs of HPC) workloads. Intel and Nvidia also leverage Astera Labs solutions.
In 2023, the company generated revenue of $115.8 million but had a net loss of $26.3 million.
Step 4: Place an order
“You’re almost there—just a few more decisions to make. First, determine the number of shares you want to buy. Then, choose your preferred order type: either a market order or a limit order. Finally, click the buy button and celebrate this important step towards growing your wealth.”
Is Cerebras profitable?
Cerebras, being privately owned, does not face the same regulatory obligations as publicly traded firms, which require disclosure of financial information. With limited details on Cerebras’ financial performance, it is difficult to gauge its profitability.
However, if the company goes public through an IPO, investors will get a comprehensive insight into its financials through the S-1 prospectus.
Should I invest in Cerebras?
Cerebras is currently privately held, meaning it is closed to only some people to invest. However, if rumors about its planned IPO in 2024 are true and the company goes public, it must disclose its financial information through regulatory filings. This will allow potential investors to understand its financial situation better and decide whether investing in its stock makes sense.
Accredited investors may currently have opportunities to invest in Cerebras. However, investing in Cerebras, even for accredited investors, involves significant risk, so they should be prepared for speculative investments.
ETFs with exposure to Cerebras
Cerebros is not listed on the stock market, meaning investors cannot buy its shares through an exchange-traded fund (ETF). However, alternative options are available. There are several artificial intelligence (AI) ETFs available that can attract investors.
- Vanguard Information Technology ETF (VGT 1.43%): Don’t be misled by the name. Despite not mentioning AI in its name, this ETF has significant artificial intelligence influence. Nvidia is the third-largest holding in the ETF, after Broadcom (AVGO, -0.72%) and Advanced Micro Devices. With a low expense ratio of 0.1%, the ETF also provides quarterly distributions.
- Roundhill Generative AI & Technology ETF (CHAT 1.4%): Billing itself as “the world’s first ETF powered by generative AI,” this investment option may appeal to investors unable to buy Cerebros stock directly. Nvidia is the largest holding in the ETF, followed by Microsoft, a key partner of OpenAI (MSFT 0.73%). Nvidia and Microsoft together account for more than 15% of the ETF’s total portfolio, which consists of 43 holdings and an expense ratio of 0.75%.
- Global X Artificial Intelligence & Technology ETF (AIQ 0.91%): This ETF holds 84 different investments, offering a comprehensive strategy for AI. This includes not only companies involved in AI hardware but also those that expect to benefit from advances in AI technology in their products and services. Key holdings such as Nvidia, Broadcom, and Qualcomm are complemented by Meta Platforms (2.34%), Netflix (0.51%), and Amazon (0.41%). The ETF has a total expense ratio of 0.68%.
Final Words: Cerebras Stock
Given the substantial growth expected in the creative AI market over the next decade, it’s no surprise that investors are watching Cerebras closely. Despite the company’s significant achievements, its financial stability remains unclear, a question that may be answered if it moves forward with its IPO plans. In the meantime, investors have plenty of other AI stocks and ETFs to explore.
FAQ: Investing in Cerebras FAQ
Can you invest in Cerebras?
As of April 2024, Cerebras has not yet gone public with an IPO, so its stock is not accessible to retail investors. However, accredited investors can find opportunities to invest in Cerebras through platforms like Forge Global.
Is Cerebras on the stock market?
As of April 2024, Cerebras is not listed as a publicly traded company on the New York Stock Exchange or Nasdaq.
Is Cerebras a listed company?
While Cerebras has raised multiple rounds of funding and has multiple investors, the company has not yet gone public through an IPO, nor is it listed on US exchanges.
What is the stock symbol for Cerebras?
As of early 2024, Cerebras has yet to go public with an IPO, so it doesn’t have a stock ticker symbol. If the company decides to go ahead with an IPO in late 2024 or later, investors will learn the stock symbol.
