00:00Cerebrus has raised more than $5.5 billion in its U.S. IPO in the year's biggest offering so far.
00:08The AI chipmaker priced its shares at $185 each, giving it a market value of about $40 billion.
00:15Let's get more now with our Bloomberg senior strategist, Neil Campling.
00:19So, Neil, potentially the first of many big tech IPOs this year. What does this listing really tell us?
00:25I think if we look at the starting price range we had for this stock, it was about $115.
00:33So, we've ended up pricing this deal 60% above initial expectations.
00:39We also learned that the deal was 20 times oversubscribed.
00:44And, of course, we also had an exclusive last night that SoftBank and Arm tried to buy the company just
00:50a few weeks ago.
00:51There is huge pent-up demand for any stocks, private stocks that are coming to the market that have those
00:59AI ambitions, those high growth rates.
01:02And this is just, I think, cementing the demand and the appetite that's out there from investors for these kind
01:10of offerings.
01:12And we're also seeing Cisco's better-than-expected outlook boosting Nasdaq futures this morning.
01:18Nasdaq futures now up 0.3%, Neil.
01:20Is this another AI pivot that's paying off?
01:25It does seem so, Lizzie.
01:27Yeah, I mean, it's quite incredible for an old-school tech company like the likes of Intel has had a
01:33fantastic year as well.
01:35Pivoting to AI to see the stock rise 20% after hours.
01:39Now, the key thing within the guidance is the hyperscale-related revenues.
01:45They increased their guidance for hyperscaler revenues to grow by 80% this year from where it was before.
01:53So it's an increased, incredible raise to the guidance for hyperscalers that's helping sort of accelerating growth for the overall
02:03business.
02:03So a business that has struggled in recent years is certainly coming back from the dead and really is pivoting
02:11to AI under new leadership.
Comments