Cerebras's May 2026 IPO priced at $185, surged to $386 on opening day, and closed at $311, a 68% pop, before the stock spent the next six weeks giving back most of its gains, and its first earnings report triggered a record two-day plunge that briefly pushed it below the IPO price. The quarter itself was impressive, with revenue nearly doubled, Cerebras beat expectations, and management raised full-year guidance above consensus. The problem was not demand; it was the cost of keeping up with it. Management argues the market misunderstood the softer margin outlook, which is partly due to Cerebras renting back its own chips from a customer while it waits for new data centers to come online. Cerebras builds a Wafer-Scale Engine that packs ~4 trillion transistors, against ~200 billion on NVIDIA's flagship Blackwell, and sells it inside a single machine, the CS-3, which lets Cerebras generate tokens roughly an order of magnitude faster than a GPU cluster.