📈 Cerebras and the IPO pop

Wall St is finally grasping AI inference demand

This post originally appeared in Exponential View.

“The most important takeaway from this IPO is not the frenzied pop.”

Cerebras Systems, which makes massive, beautiful chips for AI workloads, hit the Nasdaq yesterday. At one point, the stock was up 157%, before settling for a more muted 107% return.

On the first day, IPO pops bring out the bears and cynics for good reason. The dotcom heyday was full of them. Calico Commerce, VA Linux, TheGlobe.com: each up 300%, 605% and 697.5% on day one, respectively. Remarkable performances, long-term disasters. VA Linux, the “best” of them, lost about 98% of its value. TheGlobe.com and Calico were effectively wiped out.

What did they have in common? Low revenues, fast growth rates and a booming, booming, booming market.