Cerebras Systems Soars on First Day of Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: Coinmarketcap
- First Day Performance: Cerebras Systems opened at $367 on its first day of trading, doubling from its IPO price of $185, which propelled its market valuation to $40 billion, reflecting strong investor confidence in its AI chips.
- Valuation Surge: The company's valuation skyrocketed from $8.1 billion to $40 billion in just eight months, underscoring its rapid growth trajectory and the surging market demand, particularly driven by tools like ChatGPT.
- Industry Trend Impact: The flourishing of AI stocks is reshaping the tech industry, with other chipmakers like Intel and AMD also experiencing significant stock price increases, indicating a robust investor interest in AI technologies.
- Capital Flow Changes: As AI stocks rise, market observers note a capital shift between traditional markets and cryptocurrencies, with analysts concerned that this may lead to reduced investments in digital currencies, especially as Bitcoin has dropped 7% this year.
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Analyst Views on AI
Wall Street analysts forecast AI stock price to rise
13 Analyst Rating
4 Buy
6 Hold
3 Sell
Hold
Current: 9.280
Low
18.00
Averages
30.45
High
50.00
Current: 9.280
Low
18.00
Averages
30.45
High
50.00
About AI
C3.ai, Inc. is an enterprise artificial intelligence (AI) application software company. The Company has built a solution that enables its customers to rapidly develop, deploy, and operate enterprise AI applications. It offers families of software solutions, which it collectively refers to as its C3 AI software: The C3 AI Platform, C3 AI Applications, and C3 Generative AI. The C3 AI Platform, its core technology, is a comprehensive, end-to-end application development and runtime environment that is designed to allow its customers to rapidly design, develop, and deploy Enterprise AI applications of any type. Its C3 AI Applications, built using the C3 AI Platform, is a portfolio of pre-built, extensible, industry-specific, and application-specific software-as-a-service offerings (SaaS) Enterprise AI applications that can be rapidly installed and deployed. Its C3 Generative AI combines the utility of large language models, generative AI, reinforcement learning, natural language processing.
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.
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- Deteriorating Financials: C3.ai reported total revenue of $250.3 million for fiscal 2026, a 35% decline year-over-year, with a net loss of $498 million, reflecting a nearly 70% increase from fiscal 2025, indicating severe financial challenges ahead.
- Market Reaction: Despite a 36% drop in C3.ai's stock this year, its price-to-sales ratio has fallen to 3.9, near its lowest since going public, suggesting a cautious market outlook on its future growth, prompting investors to watch for signs of sustainable revenue recovery.
- Technological Edge: C3.ai's 40 turnkey software applications facilitate AI adoption for clients, particularly in financial services, where its anti-money laundering application has achieved a 200% increase in correctly identified suspicious transactions and an 85% reduction in false positives, showcasing its competitive technological advantage.
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- Impact of Leadership Change: The departure of founder and CEO Thomas Siebel due to health issues led to an unexpected revenue collapse, resulting in lost or delayed lucrative deals and negatively affecting the company's market position.
- Severe Financial Condition: C3.ai reported total revenue of $250.3 million for fiscal 2026, a 35% decline year-over-year, with a net loss of $498 million, nearly a 70% increase from the previous year, putting the company under financial strain and necessitating a swift return to profitability to avoid further losses.
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- C3.ai Weak Demand: C3.ai (AI), valued at $1.27 billion, has faced an average billings decline of 11.2% over the past year, with a gross margin of 43.5% reflecting high service costs, raising doubts about the long-term viability of its cash-burning business model.
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- Case Background: C3.ai filed the lawsuit in November 2023, alleging that Cummins used its trade secrets without authorization, with the case stemming from a Cummins employee inadvertently sharing internal meeting notes, highlighting the importance of internal information management within corporations.
- Settlement Attempts: C3.ai made multiple attempts to amicably resolve the issue with Cummins management, including unanswered calls and a formal demand letter, demonstrating C3.ai's commitment to protecting its rights, which may influence its future business collaboration strategies.
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See More
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- Founder Return: Thomas Siebel's return as CEO on May 8 could spark a turnaround for C3.ai's financial performance, particularly after a sharp decline in sales during his absence, highlighting his critical role in the company's success.
- Deteriorating Financials: C3.ai reported total revenue of $250.3 million for fiscal 2026, a 35% decline year-over-year, with a net loss of $498 million, reflecting a nearly 70% increase from fiscal 2025, indicating severe financial challenges ahead.
- Market Reaction: Despite a 36% drop in C3.ai's stock this year, its price-to-sales ratio has fallen to 3.9, near its lowest since going public, suggesting a cautious market outlook on its future growth, prompting investors to watch for signs of sustainable revenue recovery.
- Technological Edge: C3.ai's 40 turnkey software applications facilitate AI adoption for clients, particularly in financial services, where its anti-money laundering application has achieved a 200% increase in correctly identified suspicious transactions and an 85% reduction in false positives, showcasing its competitive technological advantage.
See More
C3.ai Founder Returns: Can It Reverse the Downtrend?
- Significant Stock Decline: C3.ai's stock has plummeted by 36% this year, despite overall gains in the AI sector, indicating a potential loss of competitive edge that may weaken investor confidence.
- Impact of Leadership Change: The departure of founder and CEO Thomas Siebel due to health issues led to an unexpected revenue collapse, resulting in lost or delayed lucrative deals and negatively affecting the company's market position.
- Severe Financial Condition: C3.ai reported total revenue of $250.3 million for fiscal 2026, a 35% decline year-over-year, with a net loss of $498 million, nearly a 70% increase from the previous year, putting the company under financial strain and necessitating a swift return to profitability to avoid further losses.
- Uncertain Future Outlook: While Siebel's return as CEO is seen as a positive development, analysts predict a further 9% decline in revenue for fiscal 2027, prompting investors to exercise caution until the company demonstrates its ability to achieve sustainable revenue growth.
See More
Investing in Small-Cap Stocks: Risks and Opportunities
- Elastic Underperformance: Elastic (ESTC), with a market cap of $5.58 billion, has seen an average billings growth of only 12.5% over the past year, indicating waning customer interest, and is projected to experience a sales growth slowdown to 13.6% in the next 12 months.
- C3.ai Weak Demand: C3.ai (AI), valued at $1.27 billion, has faced an average billings decline of 11.2% over the past year, with a gross margin of 43.5% reflecting high service costs, raising doubts about the long-term viability of its cash-burning business model.
- First Bancorp Growth Issues: First Bancorp (FBNC), with a market cap of $2.43 billion, reported only 2% annual revenue growth over the past two years, and its net interest margin of 3.1% is significantly below that of other banks, indicating poor loan profitability and flat earnings per share.
- Market Opportunity Analysis: While the small-cap market presents high risks, it also offers potential opportunities, prompting investors to focus on companies with greater growth potential to avoid inefficient investments like ESTC, AI, and FBNC.
See More
C3.ai Wins $23.3M Verdict Against Cummins for Trade Secret Theft
- Court Verdict: A Delaware court found Cummins guilty of misappropriating C3.ai's trade secrets, awarding $23.3 million in damages, which underscores the legal system's commitment to intellectual property protection and may impact Cummins' market reputation and future partnerships.
- Case Background: C3.ai filed the lawsuit in November 2023, alleging that Cummins used its trade secrets without authorization, with the case stemming from a Cummins employee inadvertently sharing internal meeting notes, highlighting the importance of internal information management within corporations.
- Settlement Attempts: C3.ai made multiple attempts to amicably resolve the issue with Cummins management, including unanswered calls and a formal demand letter, demonstrating C3.ai's commitment to protecting its rights, which may influence its future business collaboration strategies.
- CEO Statement: C3.ai CEO Thomas M. Siebel stated that the fairness of the judicial system has been validated, emphasizing the importance of law in the business environment, which could enhance investor confidence in C3.ai and potentially drive its stock price upward.
See More
C3 AI Awarded $23.3 Million in Trade Secrets Case
- Jury Verdict: On May 19, 2026, a Delaware Superior Court jury unanimously ruled in favor of C3 AI, awarding $23.3 million in damages to C3 AI, which reinforces its legal standing in the industry regarding trade secret misappropriation.
- Case Background: C3 AI filed the lawsuit in November 2023, alleging that Cummins unlawfully appropriated its trade secrets, with the case stemming from an employee's inadvertent sharing of internal meeting notes, highlighting significant management lapses within Cummins.
- Ethical Appeal: C3 AI CEO Thomas Siebel urged Cummins' Board of Directors to reassess the ethical foundations and core values of its senior management, emphasizing the need to uphold the reputation and legacy of Cummins as an iconic American company.
- Government Investigation: Notably, Cummins is also under investigation by the U.S. Department of Justice for allegedly modifying hundreds of thousands of engines to bypass emissions tests over the past decade, which could result in a civil penalty of up to $1.675 billion, further damaging its market image.
See More
Analysis and Investment Recommendations for AI Stocks
- BigBear.ai Financial Struggles: BigBear.ai's revenue declined from $146 million in 2021 to $128 million in 2025, with net losses widening from $124 million to $294 million, primarily due to the bankruptcy of its largest customer, Virgin Orbit, and increased market competition, raising concerns about its future growth prospects in the AI sector.
- C3.ai's Weak Growth: C3.ai's revenue increased from $183 million to $389 million between fiscal 2022 and 2025, but its net loss expanded from $56 million to $289 million; despite launching new generative AI modules, its reliance on lower-margin services led to a decrease in gross margins, with future revenue expected to drop to $251 million.
- Broadcom's Strong Performance: Broadcom's revenue and adjusted EBITDA grew at CAGRs of 24% and 27% from fiscal 2021 to 2025, with AI chip sales surging 65% to $20 billion in 2025, accounting for 31% of total revenue, indicating robust demand and growth potential in the AI market.
- Future Outlook: Analysts expect Broadcom's revenue and adjusted EBITDA to grow at a 48% CAGR through 2028; despite its enterprise value of $2.1 trillion, it remains an attractive investment option compared to C3.ai and BigBear.ai, trading at 18 times next year's adjusted EBITDA.
See More
