Is It Too Late to Buy Cerebras Systems After the Stock Soared Following Its IPO?

The biggest driving force in the stock market over the past few years has been artificial intelligence (AI) infrastructure, so when AI chip company Cerebras Systems (NASDAQ: CBRS) made its public debut on May 14, investors, not surprisingly, sent its shares soaring. After the stock climbed 68% on its first day of trading, is it too late to get in on the fun?For those unfamiliar with Cerebras, the company makes AI processors that compete with graphics processing units (GPUs) from the likes of Nvidia and Advanced Micro Devices, as well as custom AI chips, like Alphabet's tensor processing units (TPUs) and Amazon's Trainium chips. The company says its chips can provide inference 15 times faster than the leading GPU while using only a fraction of the energy. However, there is a catch.Cerebras' Wafer-Scale Engine (WSE) chips are, relatively speaking, enormous. While most companies have worked to shrink their chips to about the size of a postage stamp, Cerebras has gone in the opposite direction, designing huge chips that are about 8.5 inches on a side -- about the size of a regular iPad, not the mini version. Cerebras chips are essentially the size of an entire chip wafer. This makes them more difficult and expensive to manufacture. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool