Cerebras Systems Stock Drops 10% After Stunning IPO Debut That Minted Two Billionaires

Cerebras Systems' shares sank 10% on Friday after the company completed the largest IPO by a U.S. tech firm in years. The pullback followed a breathtaking first day. The semiconductor firm initially sold shares at $185 and closed Thursday at $331.07 — a 68% surge — giving it a market cap of about $95 billion. The firm raised $5.55 billion selling 30 million shares, the largest IPO for a tech firm since Uber's debut in 2019. The IPO debut made the company's top executives billionaires, with CEO Andrew Feldman and CTO Sean Lie owning stakes worth $3.2 billion and $1.7 billion, respectively. Cerebras sells extremely large computer chips and AI systems designed to train and run AI models faster than traditional GPUs. The company has established partnerships with Amazon and OpenAI — with OpenAI launching its first AI model running on Cerebras chips earlier this year.

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