NVIDIA Stock SHOCKING New Rival? Cerebras IPO Shakes Up AI Chip Market

Nvidia Stock might face new competition soon as Cerebras filed its IPO paperwork at a great time in the AI Chip market. Should NVDA Stock Investors Worry?

A portion of this video is sponsored by The Motley Fool.

I have a position on $NVDA

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[Mark-Rain]

I see little reason to buy/gamble on a unicorn, when the Nvidia dragon is eating them.

[gregblank]

Seems like no moat...As AI continues to dominate NVIDIA’s revenue, it makes sense for NVIDIA to explore a separate line of AI-specialized chips to compete with Cerebras. While their current multi-GPU approach is highly versatile and works well for general-purpose workloads (like gaming, HPC, and graphics), a dedicated AI chip—packing more cores and memory on a single chip with liquid cooling—could counter the potential threat from Cerebras’ wafer-scale design. This specialized line would be an optional deployment for organizations focused solely on training massive AI models, while NVIDIA could still maintain its flexible GPUs for everything else. It’s all about giving customers the best of both worlds! Nvidia also has the advantage of its widely used software stack standard.

However, both Cerebras and NVIDIA face significant technical downsides with these advanced designs compared to traditional approaches. For example, with wafer-scale chips like Cerebras, the challenge of manufacturing yields means some parts of the wafer inevitably have defects, forcing them to deactivate certain cores. This makes scaling tricky, as not all chips are identical, leading to inconsistencies in performance. Similarly, as chips get larger and more densely packed, issues like power consumption, heat dissipation, and the need for advanced cooling solutions (like liquid cooling) become much harder to manage compared to traditional smaller chip designs that can scale modularly across multiple units.

I vote Cerebras first since still have a few weeks before next VRT earnings, and important to know more.

[GiovanniManninoGmDriveSmart]

Definitely would love to hear more about CBRS

[AC-jkwq]

CBRS has been coming for a long time…

Let’s keep our eyes open to see what they actually have.

If they have something…. It’s a long road before they are competitive with anyone…

😃

[aharris]

Hi Jose. Vertiv please for now. Great videos - thanks.

[LifeUnfiltered-Raw]

Nvidia is so far head of all it competitions 😂

[Christiantheone]

Jose they comparing against H100 A100 P100 just full of lies and scammy marketing. I want VRT analysis. But a nerebras take down would be nice too lol

[gregblank]

Now you can calculate the updated math for nvidia chip sales based on that. I am counting at least greater than 200 billion for 2025, and that doesnt count a lot of other products they are selling. What minimum do you get?

[kevinj]

VRT please. Not interested in negative cash flowing cbrs ... this vid is enough for that

[kathleencastelein]

VRT first would be awesome, i'm a share holder, thanks Jose!

[ILoveTinfoilHats]

As someone who actually knows something about the technology behind these, this is a huge scam. They're using technicalities to make the performance figures look insane, when in reality they've got jack. Can't help but feel this is just another sketchy paid advertisement like ticker symbol you did.

[gregblank]

Unrelated: AEHR - what do you think?? Earnings coming Thursday?!

[themusic]

Cerebras has 206 million in TTM revenue, against a 8 billion dollar IPO that’d value it at 38 times sales.

Not an attractive valuation but if you can assume this growth rate is sustainable (which given the hundreds of billions currently in AI capex spend especially for AI chips it very well could be) it could blow up.

Obviously the main red flags being valuation, lack of profitability and customer concentration risk. But then again a great deal of Nvidia’s revenues are concentrated from a few cloud hyper scalers and it’s hard to believe it can keep this rate of growth and margins forever….and at a near 3 trillion dollar valuation it’s possible there’s a scenario as good as the company may be now and into the future they consolidated too much of a gold rush too fast.

Interesting times !

[CaNv]

Very interested in Cerebras. I have been following them for about 6 months and would love to see what you dig up.

[michaelwilliams]

This jose guy is a such a 🤡. Like a new company 100 years behind on technology is going to compete with a trillion dollar business. Dude you are slow