Cerebras Aims to Raise $3.5 Billion in Nasdaq IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy FIG?
Source: CNBC
- IPO Financing Goal: Cerebras plans to raise up to $3.5 billion by going public on Nasdaq, offering 28 million shares at $115 to $125 each, potentially valuing the company at $26.6 billion, reflecting strong market demand for its AI chips.
- Significant Revenue Growth: The company reported a 76% year-over-year revenue increase in Q4, reaching $510 million, along with a net income of $87.9 million, indicating successful business model transformation and boosting investor confidence.
- Strategic Partnership Opportunity: Cerebras has secured a deal with OpenAI to provide up to 750 megawatts of AI computing power by 2028, valued at over $20 billion, which not only enhances its market position but also lays the groundwork for future revenue growth.
- Founder Shareholding Situation: CEO Andrew Feldman will not sell shares in the IPO, retaining 10.3 million shares worth up to $1.28 billion at the high end, demonstrating his confidence in the company's future prospects.
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Analyst Views on FIG
Wall Street analysts forecast FIG stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 20.560
Low
38.00
Averages
53.13
High
70.00
Current: 20.560
Low
38.00
Averages
53.13
High
70.00
About FIG
Figma, Inc. designs and develops platforms for people who build digital products together. The Company helps cross-functional teams align and build software more efficiently and ensure the advanced access and controls that large organizations require. Its products include Figma Design, Dev Mode, Figma Sites, Figma Make, Figma Draw, Figma Buzz, FigJam and Figma Slides. Figma Sites is a product that lets clients design a Website and directly publish it to the Web, with a custom URL. Figma Make is an AI-powered tool that turns a prompt into a fully functional prototype. Figma Buzz is a product for easily creating marketing assets (like social media assets and digital ads) at a scale that is consistent with brand or visual identity. Figma Draw provides a space for finer vector editing required when drawing detailed iconography and product illustrations. Figma Design combines powerful features with a collaborative workspace to help teams design and build better products together.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Investment Opportunities in Artificial Intelligence
- Figma Competitive Edge: Figma's net dollar retention rate reached 136% in Q4 2025, indicating a 36% increase in spending from long-term customers, and despite competition from lower-cost AI tools, it is likely to maintain loyalty among professional designers, thereby solidifying its market position.
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- Meta Platforms Investment: Meta Platforms plans to raise capital expenditures to between $125 billion and $145 billion in 2026, and although this announcement caused a stock drop, its Q1 revenue grew by 33% year-over-year to $56.3 billion, indicating strong financial capacity for AI investments.
- Market Valuation Opportunities: With Figma's price-to-sales (P/S) ratio dropping to 9 and SentinelOne's at 5, both companies' significant stock price declines present investors with opportunities to enter AI-related stocks at relatively low prices, potentially leading to substantial recoveries in the future.
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Adobe Announces $25 Billion Share Buyback Program
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- Strong Financial Performance: In the first quarter of fiscal 2026, Adobe reported revenue of $6.4 billion, a 12% year-over-year increase, with annualized recurring revenue (ARR) reaching $26.06 billion, up 10.9%, indicating robust core business performance despite competitive pressures from AI.
- Significant User Growth: Adobe's monthly active users exceeded 850 million, a 17% increase year-over-year, while ARR from its AI applications tripled, demonstrating strong customer engagement and appeal in emerging markets.
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Cerebras Aims to Raise $3.5 Billion in Nasdaq IPO
- IPO Financing Goal: Cerebras plans to raise up to $3.5 billion by going public on Nasdaq, offering 28 million shares at $115 to $125 each, potentially valuing the company at $26.6 billion, reflecting strong market demand for its AI chips.
- Significant Revenue Growth: The company reported a 76% year-over-year revenue increase in Q4, reaching $510 million, along with a net income of $87.9 million, indicating successful business model transformation and boosting investor confidence.
- Strategic Partnership Opportunity: Cerebras has secured a deal with OpenAI to provide up to 750 megawatts of AI computing power by 2028, valued at over $20 billion, which not only enhances its market position but also lays the groundwork for future revenue growth.
- Founder Shareholding Situation: CEO Andrew Feldman will not sell shares in the IPO, retaining 10.3 million shares worth up to $1.28 billion at the high end, demonstrating his confidence in the company's future prospects.
See More
Wall Street Optimistic on Three Tech Stocks' Rebound
- Figma's Positive Outlook: Despite Figma's stock plummeting 68% in 2025 and another 49% this year, analysts believe its 12-month price target is approximately 114% above the current share price, reflecting confidence in its strong growth, particularly with a 40% year-over-year revenue increase and a 136% net dollar retention rate in Q4.
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See More
Figma Shares Drop 16% Amid AI Disruption Fears
- Stock Pullback: Figma's shares fell 16% last month despite a rising market, primarily influenced by the launch of Anthropic's new product Claude Design, highlighting potential AI threats to the design software sector.
- Market Reaction: Following Anthropic's announcement of its powerful Mythos AI model, Figma's stock dropped 14% over three days, reflecting heightened market concerns about AI startups disrupting cloud software companies.
- Industry Impact: After a brief rebound on April 15, Figma's stock declined again due to an overall downturn in the software sector, particularly as ServiceNow and IBM's earnings reports failed to alleviate pressure on cloud stocks.
- Future Outlook: Figma is set to release its Q1 earnings report on May 14, with expected revenue of $316 million, a 38.5% increase year-over-year, marking a crucial test for its growth plans in the AI era.
See More
AI Disruption in SaaS Market Creates Opportunities for Figma and Atlassian
- Figma Sales Surge: In 2025, Figma's sales soared 41% year-over-year to $1.1 billion, despite a more than 50% drop in stock price in 2026 due to AI fears; the influx of new customers indicates strong product demand, with forecasts suggesting sales will reach $1.4 billion in 2026.
- AI Tool Integration: Figma's acquisition of Weavy last year enhanced its design tools with AI capabilities, allowing designers to utilize the best-suited AI products efficiently; as AI usage ramps up, this is expected to further drive sales growth and strengthen the company's competitive position.
- Atlassian User Growth: Despite a nearly 60% drop in Atlassian's stock price in early 2026, its fiscal Q3 report revealed a continued increase in user numbers, validating the effectiveness of its user-based pricing model, which contributed to a 32% year-over-year revenue growth, reaching $1.8 billion.
- AI Credit Consumption Growth: Atlassian's AI solution Rovo saw a 20% month-over-month growth in AI credit usage, enabling customers to enhance productivity; although the company reported a net loss of $98.4 million in Q3, its strong balance sheet and future revenue potential make its stock attractive.
See More
Analysis of Investment Opportunities in Artificial Intelligence
- Figma Competitive Edge: Figma's net dollar retention rate reached 136% in Q4 2025, indicating a 36% increase in spending from long-term customers, and despite competition from lower-cost AI tools, it is likely to maintain loyalty among professional designers, thereby solidifying its market position.
- SentinelOne Revenue Growth: SentinelOne's annual recurring revenue (ARR) grew by 22% in Q4 of fiscal 2026, with an 18% increase among customers spending over $100,000, demonstrating strong demand despite challenges to confidence in cybersecurity, reflecting the effectiveness of its early AI integration.
- Meta Platforms Investment: Meta Platforms plans to raise capital expenditures to between $125 billion and $145 billion in 2026, and although this announcement caused a stock drop, its Q1 revenue grew by 33% year-over-year to $56.3 billion, indicating strong financial capacity for AI investments.
- Market Valuation Opportunities: With Figma's price-to-sales (P/S) ratio dropping to 9 and SentinelOne's at 5, both companies' significant stock price declines present investors with opportunities to enter AI-related stocks at relatively low prices, potentially leading to substantial recoveries in the future.
See More
Adobe Announces $25 Billion Share Buyback Program
- Buyback Program Size: Adobe has announced a substantial $25 billion share repurchase program, set to be completed by April 30, 2030, which represents nearly a quarter of its market capitalization of approximately $103 billion, reflecting the company's confidence in its future cash flow and long-term value.
- Strong Financial Performance: In the first quarter of fiscal 2026, Adobe reported revenue of $6.4 billion, a 12% year-over-year increase, with annualized recurring revenue (ARR) reaching $26.06 billion, up 10.9%, indicating robust core business performance despite competitive pressures from AI.
- Significant User Growth: Adobe's monthly active users exceeded 850 million, a 17% increase year-over-year, while ARR from its AI applications tripled, demonstrating strong customer engagement and appeal in emerging markets.
- Optimistic Future Outlook: Adobe projects full-year revenue between $25.9 billion and $26.1 billion, with adjusted earnings per share forecasted at $23.30 to $23.50, showcasing strong cash flow and profitability despite challenges in its traditional business segments.
See More
Cerebras Aims to Raise $3.5 Billion in Nasdaq IPO
- IPO Financing Goal: Cerebras plans to raise up to $3.5 billion by going public on Nasdaq, offering 28 million shares at $115 to $125 each, potentially valuing the company at $26.6 billion, reflecting strong market demand for its AI chips.
- Significant Revenue Growth: The company reported a 76% year-over-year revenue increase in Q4, reaching $510 million, along with a net income of $87.9 million, indicating successful business model transformation and boosting investor confidence.
- Strategic Partnership Opportunity: Cerebras has secured a deal with OpenAI to provide up to 750 megawatts of AI computing power by 2028, valued at over $20 billion, which not only enhances its market position but also lays the groundwork for future revenue growth.
- Founder Shareholding Situation: CEO Andrew Feldman will not sell shares in the IPO, retaining 10.3 million shares worth up to $1.28 billion at the high end, demonstrating his confidence in the company's future prospects.
See More
Wall Street Optimistic on Three Tech Stocks' Rebound
- Figma's Positive Outlook: Despite Figma's stock plummeting 68% in 2025 and another 49% this year, analysts believe its 12-month price target is approximately 114% above the current share price, reflecting confidence in its strong growth, particularly with a 40% year-over-year revenue increase and a 136% net dollar retention rate in Q4.
- ServiceNow's Buying Opportunity: ServiceNow's stock has dropped over 40% in 2026, yet analysts view this as a buying opportunity with a potential upside of over 60%, as 43 out of 48 analysts rated it as a
See More
Figma Shares Drop 16% Amid AI Disruption Fears
- Stock Pullback: Figma's shares fell 16% last month despite a rising market, primarily influenced by the launch of Anthropic's new product Claude Design, highlighting potential AI threats to the design software sector.
- Market Reaction: Following Anthropic's announcement of its powerful Mythos AI model, Figma's stock dropped 14% over three days, reflecting heightened market concerns about AI startups disrupting cloud software companies.
- Industry Impact: After a brief rebound on April 15, Figma's stock declined again due to an overall downturn in the software sector, particularly as ServiceNow and IBM's earnings reports failed to alleviate pressure on cloud stocks.
- Future Outlook: Figma is set to release its Q1 earnings report on May 14, with expected revenue of $316 million, a 38.5% increase year-over-year, marking a crucial test for its growth plans in the AI era.
See More
AI Disruption in SaaS Market Creates Opportunities for Figma and Atlassian
- Figma Sales Surge: In 2025, Figma's sales soared 41% year-over-year to $1.1 billion, despite a more than 50% drop in stock price in 2026 due to AI fears; the influx of new customers indicates strong product demand, with forecasts suggesting sales will reach $1.4 billion in 2026.
- AI Tool Integration: Figma's acquisition of Weavy last year enhanced its design tools with AI capabilities, allowing designers to utilize the best-suited AI products efficiently; as AI usage ramps up, this is expected to further drive sales growth and strengthen the company's competitive position.
- Atlassian User Growth: Despite a nearly 60% drop in Atlassian's stock price in early 2026, its fiscal Q3 report revealed a continued increase in user numbers, validating the effectiveness of its user-based pricing model, which contributed to a 32% year-over-year revenue growth, reaching $1.8 billion.
- AI Credit Consumption Growth: Atlassian's AI solution Rovo saw a 20% month-over-month growth in AI credit usage, enabling customers to enhance productivity; although the company reported a net loss of $98.4 million in Q3, its strong balance sheet and future revenue potential make its stock attractive.
See More
