Could Cerebras Be the Next Nvidia?

1 hour ago 1

Adria Cimino, The Motley Fool

Tue, May 19, 2026 astatine 4:30 AM CDT 5 min read

Cerebras Systems (NASDAQ: CBRS) took the marketplace by tempest past week erstwhile it surged 68% connected its archetypal time of trading. The crushed down the excitement is clear. Cerebras offers thing successful large request close now: a high-performance AI spot to powerfulness workloads. In fact, the institution adjacent says its spot has surpassed the show of graphics processing portion (GPU)-based systems -- here, we mightiness deliberation of AI spot marketplace leader, Nvidia (NASDAQ: NVDA), which is known for its GPUs.

Thanks to this marketplace dominance, Nvidia has delivered aggregate wins for investors successful caller years -- successful fact, implicit the past five, the banal has climbed 1,400%. Propelling this show has been coagulated net growth. AI companies person rushed to Nvidia for compute, and this has helped gross scope records good into the billions of dollars. The AI elephantine finished the latest afloat twelvemonth with gross of much than $215 billion, representing a 65% increase.

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Now, arsenic Cerebras takes its archetypal steps arsenic a publically traded company, it's tenable to inquire the following: Could this young AI institution beryllium the adjacent Nvidia? Let's find out.

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Cerebras' large spot

So, first, let's see the constituent that makes Cerebras look precise promising close now. The institution has built a spot that's 58 times the size of Nvidia's B200 chip, and this size allows it to present large speed. Cerebras says that its Wafer-Scale Engine (WSE) has delivered up to 15 times faster inference -- this is the ample connection model's "thinking" process -- than systems powered by GPUs. And successful definite situations, Cerebras says its chips person been 1,000 times faster. Cerebras' WSE 3 includes 4 trillion transistors to substance a fixed occupation -- the institution compares this to an Nvidia bundle of 2 GPUs that clasp 208 cardinal transistors.

Customers whitethorn entree the WSE either by ordering platforms for their information centers oregon by utilizing them done the Cerebras Cloud oregon a third-party cloud. And Cerebras has seen gains successful gross arsenic customers flock to this breathtaking solution. Revenue has soared astir 2,000% from 2022 to past year, erstwhile it came successful astatine $510 million.

Investors intelligibly liked Cerebras' advancement successful the AI marketplace arsenic the banal surged connected its archetypal time of trading -- May 14 -- and the institution raised $5.5 cardinal for the biggest IPO this year. In the pursuing trading session, however, the banal gave backmost immoderate of the gains.

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