Could Cerebras Be the Next Nvidia?
Cerebras Systems (NASDAQ: CBRS) took the market by storm last week when it surged 68% on its first day of trading. The reason behind the excitement is clear. Cerebras offers something in great need right now: a high-performance AI chip to power workloads. In fact, the company even says its chip has surpassed the performance of graphics processing unit (GPU)-based systems -- here, we might think of AI chip market leader, Nvidia (NASDAQ: NVDA), which is known for its GPUs.
Thanks to this market dominance, Nvidia has delivered multiple wins for investors in recent years -- in fact, over the past five, the stock has climbed 1,400%. Propelling this performance has been solid earnings growth. AI companies have rushed to Nvidia for compute, and this has helped revenue reach records well into the billions of dollars. The AI giant finished the latest full year with revenue of more than $215 billion, representing a 65% increase.
Now, as Cerebras takes its first steps as a publicly traded company, it's reasonable to ask the following: Could this young AI company be the next Nvidia? Let's find out.
Source Fool.com
