Cerebras Systems, a rising star in the artificial intelligence (AI) chipmaking industry, is drawing comparisons to Nvidia's early days due to similar revenue levels. The company anticipates generating between $880 million and $890 million in core revenue for 2026, a significant jump from its performance last year. This growth trajectory mirrors Nvidia's data center business revenue of $830 million in fiscal 2017, nearly a decade ago.
However, the similarities between Cerebras and Nvidia end there. Unlike Nvidia, which had a profitable gaming business to fund its expansion into AI, Cerebras operates solely in the AI chip market and is not yet profitable. The company's second-quarter revenue was heavily reliant on just three customers, accounting for about three-quarters of its total revenue. Despite a strong initial public offering (IPO) priced at $185 per share in May, Cerebras' stock has since dropped to around $165, below its IPO price.
Cerebras' unique approach involves using an entire silicon wafer as one massive processor, which is 58 times the size of Nvidia's B200 chip. This design allows for unusually fast AI model processing, a key selling point for the company. The company's core revenue rose 92% year over year in the first quarter of 2026 and 103% in the second quarter, indicating robust growth. However, management's forecast for the third quarter suggests a slowdown in growth to around 58% year over year.
To replicate Nvidia's success, Cerebras would need to expand its customer base significantly and achieve consistent profitability. Currently, the company is valued at about $39 billion, which is two-thirds of Nvidia's market value at the end of 2016. Analysts caution that investing in Cerebras at this stage involves significant risks, given its current financial performance and market position.