Wall Street is scrambling to buy, with reports saying the IPO pricing for AI chip company Cerebras keeps getting surpassed, pushing its valuation close to $49 billion.

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AI chip manufacturer Cerebras Systems is surging onto the US stock market with far greater enthusiasm than expected, with its IPO pricing range repeatedly exceeded, reflecting Wall Street’s strong bet on the AI semiconductor sector.

On May 13, Bloomberg cited sources saying Cerebras is expected to price its shares at $185 each, higher than the previous range of $150 to $160. In terms of subscription demand, this IPO has attracted over 20 times oversubscription.

On Monday, Cerebras raised both its pricing range and share quantity, and if the final price settles at $185, it would once again surpass the upper limit of the revised range.

Sources cited in the report said negotiations are still ongoing, the final pricing has not been determined, and the actual price could be even higher.

At $185 per share, this IPO would raise $5.55 billion, giving Cerebras a market value of about $40 billion. According to estimates, if restricted stock units, employee options, and warrants are included, its fully diluted valuation is about $49 billion.

Demand far exceeds expectations, underwriters proactively manage order

The market enthusiasm for Cerebras’s listing has prompted the underwriting team to actively intervene.

According to reports, the company has required institutional investors participating in the IPO to specify the number of shares needed and the highest acceptable price, to identify genuine demand.

This IPO is jointly underwritten by Morgan Stanley, Citigroup, Barclays, and UBS Group. The stock will be listed on the Nasdaq Global Select Market under the code CBRS.

Cerebras’s latest financial figures provide fundamental support for its high valuation.

According to its submitted listing documents, the company achieved revenues of $510 million and net income of $87.9 million in fiscal 2025.

In the previous fiscal year, revenues were only $290.3 million with a net loss of $484.8 million, achieving a turnaround from loss to profit in just one year.

Deep Ties with Amazon and OpenAI, Competitive Landscape Emerging

Cerebras has established key partnerships in top-tier AI ecosystems.

Amazon announced plans this year to use Cerebras chips alongside Trainium processors to run AI software. OpenAI released its first model running on Cerebras chips in February this year.

Documents show that OpenAI holds 33.4 million Cerebras warrants, some of which are issued based on milestones such as computing power delivery, or Cerebras equity surpassing $40 billion.

According to Bloomberg, in the weeks before Cerebras initiated its IPO, Arm Holdings and its parent company SoftBank Group had approached Cerebras regarding a potential acquisition.

Although this acquisition discussion did not lead to a deal, it indirectly confirms the company’s strategic value in the AI chip sector.

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