May 14, 2026 · 44 min
Cerebras IPO tests the AI infrastructure boom
Mad Money w/ Jim Cramer 5/14/26
The episode weighs whether enthusiasm for new AI hardware can justify its valuations while established companies and data-center suppliers keep gaining demand.
- 1Cerebras’s debut puts investor enthusiasm for AI accelerators against the scale and valuation of established chipmakers.
- 2Charles Schwab pairs wealth-management growth and digital-asset access with caution about crypto recommendations and AI disruption.
- 3Train Technologies sees data-center demand supporting a record backlog, recurring service revenue, and energy-efficient cooling investment.
Don't miss
Cramer uses the Cerebras debut to compare a newly public AI accelerator company with NVIDIA and other established semiconductor businesses.
The brief
Cramer opens with Cerebras Systems, using its AI accelerators and high-bandwidth memory focus to frame a broader question: how much can investors pay for infrastructure powering the AI boom?
Charles Schwab CEO Rick Wurster describes growth in wealth management and lending, younger-client outreach, and digital-asset access while keeping crypto outside recommended allocations.
The Cerebras debut sharpens the comparison with established semiconductor companies, while Cramer argues NVIDIA’s value rests on its role in enabling modern AI—not on China speculation.
Train Technologies CEO Dave Regnery links a record backlog and recurring service revenue to data-center construction, emphasizing energy-efficient cooling and rejecting imminent overbuilding concerns.
The lightning round moves from Silicon Motion and Wynn Resorts to speculative and endorsed biotechnology names, closing an episode centered on separating durable demand from market excitement.
What was said on this episode
32 statements · 22 positive · 8 negative · 1 mixed · 1 neutral
Cerebras's IPO valuation and trading action were excessively speculative.
“today's IPO made me sick to my stomach”
Listen at 1:55
SK Hynix's chip sales greatly exceeded Cerebras's sales.
“SK Hynix sold $35.5 billion worth of chips last quarter. Cerebris sold $510 million worth of chips in the entirety of last year.”
Listen at 3:29
Cerebras's roughly $100 billion valuation is difficult to justify given its sales volume.
“That kind of volume, it is very hard to justify Cerebrus being worth $100 billion.”
Listen at 3:42
Cerebras's $185 IPO price seemed reasonable.
“$185 seemed reasonable.”
Listen at 5:20
Cerebras stock prices above $300 were unjustifiable.
“Anything over $300 seems nuts.”
Listen at 5:21
Cerebras might win a $40 billion contract from Anthropic or Microsoft.
“Maybe Cerebrus will win a huge contract for $40 billion from Anthropic or Microsoft.”
Listen at 5:31
Cisco's 13% rally was justified by its business performance.
“Cisco deserved the run. Today's 13% rally was completely justified.”
Listen at 6:03
NVIDIA stock may be cheaper than the average S&P 500 stock on forward earnings.
“there's a very good chance that based on forward earnings estimates, NVIDIA stock is now cheaper than the average stock in the S&P 500.”
Listen at 6:14
Investors should buy GE, whose leadership is associated with Larry Culp.
“Buy. GE is Larry Culp.”
Listen at 8:18
Boeing and GE are fundamentally good companies or stocks.
“Boeing's good and GE's good.”
Listen at 8:37
The market is undervaluing Charles Schwab's franchise.
“I think the market's misjudging this one and not valuing this incredible franchise correctly at all.”
Listen at 10:40
Charles Schwab's business is performing exceptionally well.
“our business is certainly performing exceptionally well”
Listen at 11:15
Charles Schwab grew revenue 14% and earnings 16% annually over ten years.
“For the last 10 years, we've grown the top line 14% a year and the bottom line 16% a year.”
Listen at 12:12
Charles Schwab launched teen accounts for investors aged 13–17.
“We just did launch teen accounts. for young investors ages 13 to 17.”
Listen at 13:46
Charles Schwab excludes crypto from its recommended asset allocations.
“we're not putting it in our recommended asset allocation”
Listen at 15:06
Charles Schwab believes concerns about AI disrupting its cash strategy are exaggerated.
“We think those are overblown.”
Listen at 16:24
Charles Schwab trades at 12.5 times forward earnings after ten years of 16% annual earnings growth.
“We're trading at 12 and a half times our consensus earnings for next year for a company that's grown the bottom line 16% a year for the last 10 years.”
Listen at 17:07
Charles Schwab expects its client-focused results to be rewarded by the market.
“Ultimately, we think that will be rewarded in the market.”
Listen at 17:21
Cerebras technology can train AI models ten times faster than usual hardware.
“Cerebris can also help train an AI model 10 times faster than the usual hardware lets you.”
Listen at 20:30
Cerebras is well positioned for rapid growth.
“Cerebris is in good position to grow like crazy.”
Listen at 22:14
Cerebras's post-IPO valuation is unjustifiable at current levels.
“I just can't even get close to justify the valuation up here”
Listen at 25:07
Investors should wait for a major pullback before considering Cerebras stock.
“For now, I say keep your mat on the shoulder and hope the stock gives you a giant pullback.”
Listen at 25:17
Marvell is substantially cheaper than the hyped semiconductor stock discussed.
“Marvell's so dramatically cheaper”
Listen at 26:04
Marvell stock may rise further.
“It can go higher.”
Listen at 26:08
Cerebras may become a strong long-term growth company, but its stock is not recommended now.
“Cerebrus does look like it's going to be a great long-term growth company, but I can't recommend the stock right now.”
Listen at 26:19
Investors should buy some Silicon Motion and wait for a pullback.
“we like Simo. I know it's moved a lot. So what you're doing in these is you buy some and then you wait for a pullback.”
Listen at 37:23
Investors should wait before buying Wynn Resorts because of Gulf-region uncertainty.
“I got to hold off for now. I got to wait to see what happens in that area.”
Listen at 37:53
BillionToOne is a legitimate company whose stock should be bought.
“It's a real company. That's going to be very good. I say buy it.”
Listen at 38:47
NVIDIA should be bought because its stock is inexpensive.
“You buy NVIDIA not for China, not because of the Cerebrus IPO, but because it's actually a cheap stock.”
Listen at 39:57
Jensen Huang and NVIDIA were essential to the AI revolution.
“There would be no AI revolution without Jensen-Wong and NVIDIA.”
Listen at 40:15
NVIDIA's chips are the best in the world.
“NVIDIA ships are the best in the world.”
Listen at 42:46
The United States should encourage China to adopt inferior NVIDIA chips.
“If you can get China hooked on an inferior version, I say have at it.”
Listen at 42:49
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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