Cerebras stock hits post-IPO low, tumbling 20% for the week on Nvidia pressure and lockup expiration

US stocks rose on Friday after weaker-than-expected jobs data reduced expectations for a Fed rate hike. The Dow, S&P 500, and Nasdaq all gained. Tesla and Nvidia led advances, while Nike and data storage providers fell.

NVIDIA (NVDA) stock rose 1.34% on October 2, 2026, reaching a $563.82B market cap. The company announced the launch of its DGX SPARK 64GB AI system on October 23, priced at $4,999. GuruFocus values NVDA at $400.57, suggesting a 41.6% undervaluation, but warns of potential value trap. Insider selling totaled $967.6M over three months.

Nvidia's stock hit a record high of $237.83, driven by Morgan Stanley's endorsement and a $150B share buyback. Analysts' average target is $327.70, suggesting 40% upside. Key catalysts include AI demand and upcoming earnings.

Greg Lui, owner of Earthmade Computer Inc., was arrested for allegedly smuggling $300M in Nvidia chips to China, falsifying destinations as Malaysia and Singapore. The U.S. charges include conspiracy to violate export controls. Nvidia's chips, like the H100, are in high demand for AI applications, raising national security concerns.

Cerebras Systems' stock fell 20% to an all-time low, pressured by Nvidia's dominance and post-IPO lockup expiration. The AI chip startup faces challenges in the competitive AI hardware market, despite innovative technology. Investors question its ability to compete with Nvidia's ecosystem and market share.

Greg Lui, 38, was arrested for allegedly smuggling $300 million worth of Nvidia AI servers to China. He is charged with conspiracy to violate US export controls, outbound smuggling, and money laundering. The US Justice Department claims he used false documents and transshipment schemes to evade export laws, aiming to protect US technological advantages.