Cathie Wood Just Loaded Up on This Sizzling Artificial Intelligence (AI) Semiconductor IPO Stock

For adjacent much artificial quality (AI) chipmaker vulnerability extracurricular of Nvidia and Advanced Micro Devices, Cathie Wood conscionable added Cerebras Systems (NASDAQ: CBRS) into the Ark Invest universe.

Cerebras, known for its ample chips the size of a meal plate, had its archetypal nationalist offering (IPO) connected May 14. Wood rapidly added shares to some the Ark Innovation ETF and Ark Next Generation Internet ETF connected the time of the IPO.

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While Cerebras' nationalist debut offers investors much assortment successful the AI spot space, it doesn't automatically mean investors should travel Ark's latest moves.

What's attracting truthful galore investors

Cerebras' worth proposition implicit different chipmakers is the size of its chips. Instead of relying connected clusters of aggregate smaller chips, it created a azygous ample spot that allows for faster speeds. The institution says speeds are up to 15 times faster than graphics processing units, the modular hardware utilized to bid and tally AI models.

Its attack is winning implicit galore high-profile names successful the tech world. In January, it signed a multiyear woody valued astatine much than $20 cardinal with OpenAI, and it has partnerships with some Meta Platforms and Amazon done Amazon Web Services.

Over the past respective years, its attack has besides helped gross skyrocket:

• 2022 revenue: $24.6 million

• 2023 revenue: $78.7 million

• 2024 revenue: $290.3 million

• 2025 revenue: $510 million

The Cerebras IPO sizzled for insiders

The archetypal scope for the IPO was expected to beryllium betwixt $115 and $125, but the last terms exceeded expectations astatine $185. It past opened to the nationalist astatine $350 per stock connected May 11, earlier closing connected the time conscionable somewhat supra $311.

That was a sizzling IPO, but it's not the mean retail capitalist who benefited. The insiders who invested aboriginal and watched their shares leap from $185 to $311 were the ones who benefited connected paper. Anyone who bought successful astatine that $350 terms is down, besides connected paper, with shares closing astatine $236 astatine the extremity of May.

This abbreviated model of terms past doesn't marque Cerebras a atrocious investment, nor does it marque Wood incorrect astir the imaginable semipermanent worth of the banal by including it successful her exchange-traded funds. She is known for wanting to get up of trends early, and Cerebras challenging the accepted spot manufacture fits perfectly with the types of companies Ark typically looks for.