Cerebras shares tumble 20% as Nvidia partnership news and lockup expiration pressure the AI chip maker
Cerebras Systems' stock fell about 20% this week, reaching its lowest level since the May IPO after reports that Nvidia will supply GPUs for OpenAI's upcoming model instead of Cerebras chips. The decline was amplified by the expiration of post‑IPO lockup restrictions, which released a large block of insider shares for sale. CEO Sam Altman's comment on X briefly lifted the price in after‑hours trading. The company’s market value slipped from roughly $95 billion at debut to just over $39 billion.
Why it matters
The share price drop reduces Cerebras' market capitalization and may limit its ability to raise capital for future growth, according to the material. The unlocking of insider shares adds further selling pressure, potentially diluting existing shareholders' stakes.
Key facts
- 1Cerebras stock fell nearly 20% this week, hitting its lowest price since the May IPO. cnbc.com
- 2The stock closed Friday at $166.43. cnbc.com
- 3Cerebras' market cap fell from $95 billion on the first day of trading to just over $39 billion. cnbc.com
- 4Up to 19.4 million shares held by directors, officers, non‑executive employees and non‑employee holders unlocked on Wednesday, equal to 8% of total shares outstanding. cnbc.com
- 5Since August 19, up to 14.6 million shares have been released for sale every two weeks. cnbc.com
- 6CEO Sam Altman posted on X that Cerebras is a close partner of OpenAI, prompting a roughly 3% rise in extended trading. cnbc.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.