TradingKey – In the week ended October 9, shares of Cerebras Systems (CBRS) once again approached their all-time low since listing on Nasdaq. The AI chip company went public in May this year with a market capitalization of nearly $95 billion and was viewed by investors as a challenger to Nvidia in the AI chip sector; however, its stock price has remained under pressure since then and has now pulled back more than 50% from its historic high.

The immediate catalyst for the sharp pullback in valuation was OpenAI’s decision to choose Nvidia GPUs, rather than Cerebras chips, to provide computing power support when launching its GPT-6.1 Sol “Ultrafast” mode.

For an AI chip company still in its early commercialization stage with market attention…