Jim Cramer on Cerebras: “Even After the Pullback, This One’s Too Rich for Me”

Cerebras Systems Inc. (NASDAQ:CBRS) was among Jim Cramer’s stock calls on Mad Money, as he highlighted worthy space players and reviewed several of this year’s IPOs. Cramer discussed the company’s post IPO rally, as he stated:

Finally, let’s talk about Cerebras Systems, which makes enormous ultra-fast semiconductors to handle AI inference workloads. It’s supposed to be a competitor to NVIDIA. It was the biggest IPO of the year before today, and it jumped 68% right out of the gate. I told you the stock was way too expensive at those levels. Great business, but I couldn’t justify the price, and I am glad I didn’t try.

Cerebras was at $311 when I told you it was way too pricey, stay away. And now it’s come down to $214, losing nearly a third of its value. Cerebras has become a cautionary tale as far as I’m concerned. If you bought this thing after it opened on the first day of trading, you’ve been crushed. Even after the pullback, this one’s too rich for me. It reminds me of Figma. I just hope SpaceX doesn’t follow the same downward trajectory, and I don’t think it will because there are so many buyers, and it was priced much better than Cerebras.

Photo by Chris Liverani on Unsplash

Cerebras Systems Inc. (NASDAQ:CBRS) designs and manufactures an artificial intelligence compute platform featuring a specialized wafer-scale engine designed for high-performance generative AI and inference tasks. The company provides its proprietary systems and software to several clients, including hyperscalers, foundation model labs, and sovereign AI initiatives.

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