Key Points

Cerebras and SpaceX recently went public as AI-related stocks, yet they pursue distinct strategies for sustained expansion over the coming years.
Cerebras specializes in advanced processors optimized for rapid inference, whereas SpaceX develops satellites, rockets, and supporting data centers.
Each firm shows strong growth potential alongside notable challenges.
10 stocks we prefer over Cerebras Systems

Cerebras Systems (NASDAQ: CBRS) and Space Exploration Technologies (NASDAQ: SPCX) rank among the most discussed artificial intelligence-linked IPOs of 2026. Investors should view them separately rather than as similar opportunities.

Cerebras operates as a chip designer focused on AI hardware that differs from Nvidia offerings. SpaceX builds rockets and satellites while expanding into AI infrastructure following its combination with xAI.

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Cerebras targets rapid AI inference at large scale

The core offering from Cerebras is its wafer-scale engine, an AI processor fabricated on a full silicon wafer. Conventional GPU and CPU production divides wafers into many smaller components, often requiring clusters linked across servers. This setup can face limits from data transfer speeds between chips and memory. Cerebras reduces such constraints by consolidating computation and communication on a single large processor. Inference workloads, which involve deploying models for real-world responses, stand to gain especially as demand grows for efficient handling of complex tasks.

OpenAI drives much of the interest in Cerebras. The company ended 2025 with remaining performance obligations of $24.6 billion, much tied to OpenAI. In January 2026, OpenAI committed to 750 megawatts of additional Cerebras capacity in a pact exceeding $10 billion through 2028. Reports later indicated potential spending above $20 billion across three years on related servers. These updates effectively doubled prior commitments.

The arrangement also includes warrants allowing OpenAI to acquire a minority stake, scaled to spending levels, plus a roughly $1 billion loan to support manufacturing and data center growth.

Amazon has collaborated with Cerebras to offer inference services via Amazon Bedrock. This provides broad cloud access, though some elements await final contracts, so the opportunity merits attention without full confirmation yet.

Financial results for 2025 showed revenue climbing 75.7 percent to $510 million. The cloud and services portion grew 93.6 percent to $151.6 million, signaling progress toward recurring revenue streams.

Shares trade at 90.2 times trailing sales, a premium that reflects expectations around OpenAI-driven demand converting into actual capacity and usage. Strong execution could expand the business substantially, while delays might heighten risks tied to key contracts.

SpaceX builds on Starlink for AI infrastructure growth

Starlink satellite service forms the main growth driver for SpaceX. Revenue reached $18.7 billion in 2025, with connectivity contributing $11.4 billion and $4.4 billion in operating profit. This base supports further satellite deployment, launch capabilities, mobile services, and AI compute expansion. At the end of the first quarter of 2026, the company reported 10.3 million subscribers, over 9,600 satellites, and presence in 164 markets.

The AI infrastructure segment advances with a cloud agreement involving Alphabet, under which Google commits $920 million monthly from October 2026 through June 2029. Anthropic has leased full capacity from the Colossus 1 data center, exceeding 300 megawatts.

Successful conversion of these deals could shift valuations toward an AI infrastructure focus enabled by space assets.

The Starship reusable rocket system offers further potential. Reliable operation of the V3 version could cut launch expenses, enable larger satellites, aid deep-space efforts, and support orbital data centers.

Starlink has entered mobile connectivity via direct-to-cell links, with a spectrum arrangement involving EchoStar to improve economics and reach in telecommunications.

Risks include ongoing losses in the AI segment and high capital needs, with expenditures at $20.7 billion for 2025 and $10.1 billion in early 2026. The Google agreement includes termination options if delivery targets slip.

Preferred choice?

SpaceX appears positioned for stronger results over the next ten years. Starlink supplies recurring revenue, Starship can reduce costs, the xAI integration adds proprietary AI tools like Grok, and Colossus enables direct compute sales to clients such as Anthropic. Multiple avenues for expansion reduce reliance on any single area.

Cerebras may deliver greater gains if inference speed emerges as a critical constraint, yet it depends heavily on OpenAI and select clients while needing to meet delivery goals and support its valuation.

SpaceX therefore represents the more resilient selection for a decade-long horizon due to its diversified paths forward.

Considering a purchase of Cerebras Systems shares?

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The Motley Fool Stock Advisor team has identified the 10 best stocks for purchase at present, and Cerebras Systems did not appear on that list. The selected names hold potential for substantial gains ahead.

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Manali Pradhan, CFA holds no positions in mentioned securities. The Motley Fool maintains stakes in and recommends Alphabet, Amazon, and Nvidia. A disclosure policy applies.

The perspectives expressed are those of the author and may not align with Nasdaq, Inc.