Cerebras Stock Falls Below IPO Price as Selling Pressure Grows
Cerebras stock fell to a post-IPO low of about $147 on October 12, roughly 21% below its $185 offering price and 62% below its first-day peak of $386. The shares opened at $350 when the AI chipmaker listed on Nasdaq in May 2026. Its market value was about $39 billion in early October, down from roughly $95 billion at its debut-day peak.
The decline followed the October 1 expiry of IPO lockup restrictions, with about $84 million in insider sales reported or planned. Cerebras raised $5.55 billion by selling 30 million shares, at a fully diluted valuation of about $56.43 billion. The company reported 2025 revenue of $510 million, up 76% year on year, and net income of $237.8 million after a loss in 2024.
Cerebras stock also faces competition from Nvidia. A SemiAnalysis report said some critical workloads were shifting to Nvidia technology. Investors will watch demand under Cerebras’ multi-year compute agreements with OpenAI and Amazon Web Services, as well as future earnings and further insider sales.
Bearish
The news is bearish for Cerebras stock in the short term. Shares have dropped below the IPO price and fallen sharply from their first-day peak, while the lockup expiry and reported or planned insider sales add potential supply and can weaken investor confidence. Reports of some workloads shifting to Nvidia also raise concerns about competition and future demand.
The longer-term outlook depends on execution. Strong 2025 revenue growth, a return to profitability, and multi-year agreements with OpenAI and AWS could support the business if they translate into sustained demand and earnings. However, customer concentration, competition, and further insider selling remain risks. Traders may respond to earnings, customer updates and disclosures of share sales; a sustained recovery would likely require evidence that demand and profitability can offset selling pressure.