Cerebras Loses Some Steam, But Is Still Expensive - Heard on the Street -- WSJ

Dow Jones05-16

By Dan Gallagher

Some acts are impossible to follow.

Cerebras Systems had a rip-roaring market debut but a rougher ride on its second day out. The AI chip maker's stock slipped more than 3% by midday Friday. That followed a 68% jump from its IPO price the day before. Friday was a tough day for chip stocks in general, as most sold off after the summit between President Trump and Chinese leader Xi Jinping failed to produce any major chip deals. The PHLX Semiconductor Index was down more than 3% by midday.

Cerebras, though, still has a very pristine valuation to live up to. Even Friday's haircut leaves the stock priced around 129 times the company's revenue for the past four quarters. That's nearly five times the trailing sales multiple that Nvidia commands. Cerebras will need to show that its big chips can carve out a sizable piece of the AI pie.

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May 15, 2026 13:10 ET (17:10 GMT)

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