Nvidia vs Cerebras: which discounted AI chip stock offers better value right now

Nvidia and Cerebras both trade below peak valuations, but Nvidia offers a discounted entry into a dominant AI chip maker at 28x forward earnings with analysts seeing 30% upside, while Cerebras, despite 76% revenue growth and a $24.6 billion backlog, carries higher risk due to stock volatility and 24% revenue concentration from OpenAI.

Nvidia vs Cerebras: which discounted AI chip stock offers better value right now Both AI hardware giants are trading below their peak valuations, but the investment cases could not be more different. Nvidia, the undisputed king of GPU-powered AI training, trades at roughly 28x forward earnings. Cerebras, the scrappy newcomer with wafer-scale chips the size of dinner plates, is still finding its footing after a blockbuster IPO. The question isn’t whether AI chips matter. It’s which bet makes more sense at today’s prices. The tale of the tape Cerebras Systems hit public markets on May 14, 2026, pricing its IPO at $185 per share and raising $5.55 billion in the process. The stock surged 68% on its first day of trading, briefly pushing the company’s market cap near $100 billion. Shares have been bouncing between $226 and $230 in late June, a significant pullback from debut highs. Cerebras reported $510 million in revenue for 2025, a 76% year-over-year increase. The company guided 2026 revenue between $855 million and $865 million, slightly above what analysts had penciled in. It also disclosed a backlog worth $24.6 billion. Nvidia’s forward earnings multiple of around 28x actually looks reasonable by AI-era standards, and some analyst models peg its intrinsic value near $323 per share, suggesting the stock could be roughly 30% undervalued at current levels. Different chips, different bets Cerebras’ WSE-3 wafer-scale chips are reportedly 57 times larger than Nvidia’s biggest GPUs. The company claims performance up to 21 times faster than comparable Nvidia hardware, at approximately one-third lower cost versus Nvidia’s Blackwell B200 chips. OpenAI accounts for about 24% of Cerebras’ revenue and backlog. Having nearly a quarter of your business tied to a single customer is the definition of concentration risk. Nvidia controls approximately 80% of the AI data-center GPU market. Its CUDA software platform has created a moat that extends far beyond raw chip performance. Why crypto investors should care Companies like Core Scientific and Hut 8 have already pivoted toward AI hosting, essentially renting out their data center capacity to AI workloads that can pay more than Bitcoin mining. For investors weighing these two stocks as portfolio positions, the risk profiles are starkly different. Nvidia offers what looks like a discounted entry into a proven cash-flow machine with dominant market share. At 28x forward earnings with analysts suggesting 30% upside to intrinsic value, it’s the kind of setup that appeals to investors who want AI exposure without stomach-churning volatility. Cerebras is the higher-variance play. A $24.6 billion backlog and 76% revenue growth are impressive, but the stock has already demonstrated it can move violently in both directions. Revenue guidance that came in only slightly above expectations suggests the market may have already priced in much of the near-term growth story. The OpenAI concentration issue deserves serious weight in any investment thesis. If that relationship deepens, Cerebras becomes a leveraged bet on OpenAI’s continued dominance. If OpenAI diversifies its chip suppliers, that 24% revenue exposure becomes a vulnerability rather than a selling point. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .