Jim Cramer’s Comments on 25 Stocks Like Micron, Dell, and Playing the Recent Market Rotation

15. Cerebras Systems Inc. (NASDAQ:CBRS)

Cerebras Systems Inc. (NASDAQ:CBRS) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. Cramer highlighted that he warned against the stock when it was hot, as he said:

We’ve had plenty of cautionary tales from the IPO market. Take Cerebras Systems, please, which makes enormous semiconductors that are used to handle AI workloads. Now, this was the second largest deal of the year. It was priced at $185. Listen to this: stock opened for trading at $350. It surged to $386. And at its intraday high, well, let me just say it had doubled the price of… [from] where it came. Now, that was bad… I warned you to stay away from this one. It seemed too hot when it got all the way up there. Now, since then, well, it’s pretty historic.

The stock’s pulled back to $221. In fact, last week, it briefly sank to the $160 level… after Cerebras reported just an okay quarter, disappointing gross margins. Now, it’s been able to rebound from those lows, but the point stands. See, if you tried to get into Cerebras on the first day, it blew up in your face. Buying hot stocks right after they come public tends to be a recipe for disaster.

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.