Forget Cerebras Systems' IPO and Focus on This Tech Giant Instead

"Cerebras went public into the most crowded narrative in markets. The stock closed at $311.07, already well off its 52-week high of $385. There is no trailing P/E, no revenue per share, no operating margin and no analyst target price available. You are buying a story competing directly against Nvidia, the hyperscalers' in-house silicon, and a dozen other AI chip startups. For a retirement-focused portfolio, this is the textbook setup for post-IPO overextension."

"Meanwhile, Alibaba ( NYSE:BABA | BABA Price Prediction), a $340.98 billion Chinese tech giant trading at a forward P/E of 21, a PEG ratio of 0.857, and a price-to-sales ratio of 0.333. The market is ignoring it. Three reasons to redirect your attention while the crowd chases chips. First, Alibaba's AI and cloud business is already commercialized at scale."

"Fiscal Q4 2026, reported May 13, 2026, put Cloud Intelligence Group revenue at $6.035 billion, up 38% YoY, with AI-related products posting an 11th consecutive quarter of triple-digit growth and now contributing 30% of external cloud revenue. CEO Eddie Wu said, "Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale." The full stack includes the Qwen large language model, proprietary T-Head Zhenwu PPU chips with more than 100,000 deployed, and a Qwen consumer app that surpassed 300 million monthly active users."

"Second, the consolidated business dwarfs the IPO story stock. Fiscal year 2026 revenue came in at $148.40 billion, net income at $14.81 billion, EPS at $3.89. Total assets sit at $276.83 billion, shareholders' equity at $153.80 billion, cash and equiv"

Cerebras Systems trades as a newly public AI chip designer competing with Nvidia, hyperscaler in-house silicon, and other AI chip startups. The stock closed at $311.07, below its 52-week high, with no trailing P/E, revenue per share, operating margin, or analyst target price available. The setup is framed as post-IPO overextension for retirement-focused portfolios. Alibaba is presented as an alternative, with a forward P/E of 21, PEG of 0.857, and price-to-sales of 0.333. Alibaba’s AI and cloud business is described as already commercialized at scale, including Cloud Intelligence Group revenue growth and AI products contributing a growing share of external cloud revenue. Alibaba’s broader financial scale is also highlighted, with large revenue, net income, EPS, assets, equity, and cash.

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