"NVIDIA Corporation's strongest challenger" Cerebras (CBRS.US) plans to increase its IPO price range to $150-160 and has received 20 times oversubscription.

According to two informed sources, due to the increasing demand for the stock of artificial intelligence chip maker Cerebras Systems (CBRS.US), the company may increase the size and price of its initial public offering as early as Monday. The sources said that the AI chip startup, known as the "strongest challenger to NVIDIA Corporation," is considering raising the IPO price range from $115-$125 per share to $150-$160 per share, and increasing the number of shares to be marketed from 28 million to 30 million. According to the sources, based on the new upper price range, Cerebras could raise approximately $4.8 billion, higher than the $3.5 billion originally planned, but these numbers could still change before pricing. This increase follows a wave brought about by the broader adoption of artificial intelligence applications, which has driven strong demand for high-performance chips and made semiconductors a key bottleneck in the technology supply chain. The sources mentioned that orders for Cerebras' IPO exceed the number of shares available for subscription by 20 times. Prior to the latest news of $150-$160, there were reports that the company planned to increase the range to $125-$135. According to the current listing schedule, the company is expected to finalize the offering price on May 13 and to be listed on the NASDAQ exchange the following day, with the trading symbol "CBRS." Based in Sunnyvale, California, Cerebras produces dedicated chips for running advanced artificial intelligence models, in a market currently dominated by NVIDIA Corporation. Unlike NVIDIA's strategy of using multiple small chips interconnected, Cerebras stands out with its distinctive "Wafer-Scale Engine" (WSE-3) chip, which occupies the entire silicon wafer in physical form, greatly reducing communication latency during model training and inference processes. As artificial intelligence labs shift from training models to deploying them, there is a surging demand for Cerebras' processors. Compared to GPU chips traditionally used for model training, Cerebras' chips are better suited for inference, which involves computing the responses of artificial intelligence models to user queries. Financial data indicates that the company's revenue is expected to increase by 76% year-on-year to $510 million in 2025 and has successfully turned a profit under GAAP guidelines, a rare feat in the cash-burning AI chip race. This week's IPO will be Cerebras' second attempt at going public - the company initially filed for an IPO in 2024, but withdrew the plan last year. Its partnership with UAE-based AI company G42 contributed over 80% of its revenue in the first half of 2024, triggering a national security review by the Committee on Foreign Investment in the United States. However, the committee eventually approved the transaction. Since then, Cerebras has successfully signed Amazon.com, Inc. and OpenAI, the two largest AI infrastructure builders in the world, as clients. In particular, OpenAI is not only a significant user but also holds warrants to purchase over 33 million common shares, providing a solid guarantee for Cerebras' long-term order growth. According to Dealogic, this IPO will be the largest global offering so far this year. The issuance is led by Morgan Stanley, Citigroup, Barclays PLC Sponsored ADR, and UBS Group AG.