Gene Jones

Raleigh Durham M&A / Private Equity Attorney

[First Squawk @FirstSquawk]

CNN: TRUMP HAS DECLARED AN IRAN DEAL 'IMMINENT' 37 TIMES, YET NO AGREEMENT HAS BEEN REACHED

[tom keene @tomkeene]

tweet of the day

[Thomas Massie @RepThomasMassie]

The President’s Big Beautiful Bill, the Iran War, and Republican spending bills will create a $2 trillion budget DEFICIT in 2026.

Financing just the new debt costs more than all federal road & bridge projects, and we will be making those new interest payments each year, forever.

[Gene Jones @GeneAJonesJr]

$GLXY. The new lease better be a blockbuster

[Warren Pies @WarrenPies]

Nebius ($NBIS) raising on-demand pricing by 29%.

The 3Fourteen GPU Availability Index went from 80% at the beginning of the year to 9%.

GPU availability leads pricing.

B200 still at 0%...GH200 tightening further.

[Joshua Reed Eakle 🗽 @JoshEakle]

Rubio: “I think China's preference is probably to have Taiwan willingly voluntarily join them.”

This is the Trump administration laying the groundwork to abandon Taiwan, just like they did with Ukraine.

Authoritarians around the world will celebrate.

[Gene Jones @GeneAJonesJr]

@disruptorinvest Are they building out their own data centers? Or just leasing space?

[Gene Jones @GeneAJonesJr]

$DGXX

[Evan @StockMKTNewz]

AI CHIPMAKER CEREBRAS JUST PRICED ITS IPO AT $185 PER SHARE, ABOVE THE $150-$160 MARKETED RANGE

Cerebras will begin trading tomorrow sometime during the middle of the day under the ticker $CBRS

[Gene Jones @GeneAJonesJr]

@DeepValueBagger Real operators. Playing a different game.

[Gene Jones @GeneAJonesJr]

$DGXX is the best derivative play on $CRBS growth

[Finn Stockinger @FinnStockinger]

$CRBS demand is 20x oversubscribed.

Cerebras just upsized its IPO to a $4.8B valuation, hiking the price range to $150–$160.

The hype is massive, but I’m staying on the sidelines for now.

When expectations are this high, the margin for error is zero.

I’ll wait for the post-IPO dust to settle and see where the price lands once the initial FOMO fades.

Keep in mind, the IPO is happening this week.

How are you playing this one? Buying the debut or waiting for a better entry?

[Gene Jones @GeneAJonesJr]

$DGXX

[Jason's Chips @jasonschips]

Cerebras goes public in two days. If you're at all interested in this IPO or just want to follow the story of a stock about to be born, this is a must-read.

Their tech is genuinely so cool, and they have a real niche inside of AI, which will be increasingly relevant going forward.

[Gene Jones @GeneAJonesJr]

$DGXX is the best and far cheaper derivative play. Direct DC relationship with $CBRS

[InvestmentGuru @InvestmentGuru_]

THE IPO OF 2026 IS THURSDAY

$CBRS — Cerebras Systems hits Nasdaq on May 14th
And this isn’t just another AI hype listing. This is the company that built a chip the size of a dinner plate to go to war with $NVDA.
THE TECHNOLOGY
→ Wafer-Scale Engine (WSE) — 58x larger than Nvidia’s B200, with 19x more transistors, 250x more on-chip memory, and 2,625x more memory bandwidth 
→ The entire silicon wafer IS the chip — no inter-chip communication latency
→ Purpose-built for AI inference, not training — where the next trillion-dollar battle is being fought
THE DEAL TERMS (UPDATED)
→ IPO price range raised to $150–$160/share from the original $115–$125 range 
→ Shares offered upsized to 30M from 28M — raising up to ~$4.8B 
→ Book is oversubscribed 20x — demand is historic 
→ Largest IPO globally so far in 2026 
THE FUNDAMENTALS
→ 2025 revenue: ~$510M, up from ~$290M in 2024 
→ OpenAI signed a $20B+ deal for 750MW of Cerebras-backed compute through 2028 
→ AWS deploying CS-3 systems in its data centers and distributing through Amazon Bedrock 
→ Implied valuation at top of new range: ~$32B+
THE RISKS
→ Two customers account for 86% of revenue — concentration risk is real 
→ GAAP operating losses persist despite strong top-line growth
→ Previous IPO was pulled in 2024 over CFIUS/G42 (UAE) scrutiny — now cleared, but the overhang is part of the history
→ 20x oversubscribed = first-day pop priced in, early volatility likely
THE BIGGER PICTURE
Cerebras isn’t trying to beat $NVDA at training. It’s attacking the inference bottleneck — the part of AI compute that scales with every user query, every agent, every real-time application. If agentic AI is the next wave, low-latency inference silicon becomes the most strategic asset in the stack.

[Gene Jones @GeneAJonesJr]

@theincomewheel Shhhhh

[Gene Jones @GeneAJonesJr]

$DGXX

[BULL OF BRITAIN @BULLOFBRITAIN]

$DGXX just signed $1.1B with $CBRS for 10% of its power pipeline. Market cap is $475M.

The math doesn't add up.

> $1.1B base contract, $2.5B with renewals (10yr term)
> 40MW Cerebras = 10% of secured 400MW pipeline
> Phase 1 live Dec 2026, full 40MW Q1 2027
> Market cap: $475M

Where peers trade after the same colo pivot:

> $NBIS - 9.5x forward P/S
> $IREN - 8.7x forward P/S
> $CRWV - 5-7x EV/Sales
> $HUT - 52x EV/EBITDA
> $WULF - 53x EV/EBITDA

> $DGXX - 1.6x FY28 sales at base case

Same pivot. Same playbook. 5-50x smaller multiple.

Capital structure favors holders:

> 100% equipment lease financing on GPU capex (per CFO Paul Ciullo)
> 15% customer prepay on contracts
> ATM upsized $75M to $175M
> $72M already raised at ATHs not on lows
> Zero long-term debt

Per-share targets at peer-aligned 7.5x EV/Sales (current $6.45):

> Worst FY27: $5.68 (-12%)
> Base FY28: $19.83 (+208%)
> Bull FY28: $41.06 (+537%)

12% downside in worst case vs 200-500% upside in base/bull. That's the asymmetry.

Catalyst stack into next week:

> Earnings
> $CBRS IPO pricing
> ATM live for upside funding
> 5/15 GPU rental revenue start

$DGXX is where $IREN $NBIS $CRWV were 18 months ago. Asymmetry doesn't last once the crowd finds it.

[Gene Jones @GeneAJonesJr]

$DGXX Best derivative play on $CBRS

[Michael Sikand 🦑 @michaelsikand]

I'm hearing retail is being denied the $CBRS IPO happening Thursday.

People are reporting no allocation requests on their brokers like $HOOD?

Here are 3 $CBRS proxy revenge trades for retail investors worth deeper research.

Polymarket shows a 74% chance $CBRS closes above $50B on day 1. On $510M of 2025 revenue, $50B is a 98x P/S multiple.

$VICR ($11.7B MC, 15x P/S, $767M LTM rev)

The vertical power delivery monopoly inside Cerebras' wafer scale engine. CEO confirmed Cerebras is the lead customer and orders are filling the entire new Andover ChiP fab. That could be an $800M annual run rate that could basically double VICR's entire revenue base?

$WYFI ($815M MC, 10x P/S, $79M LTM rev)

WhiteFiber signed a 5 year, 5MW colocation deal to be Cerebras' first Canadian data center. AI grade colo runs $2.5-$3M per MW per year, so call it $12 to $15M recurring from Cerebras alone, around 15 to 20% of current revenue, with right of first refusal on additional capacity at the site.

$DGXX ($411M MC, 8.8x P/S, $34M LTM rev)

Just locked a 10 year $1.1B colocation contract with Cerebras (up to $2.5B with expansion options) for a 40MW Alabama site. That's $110M of base annual revenue from one customer, 3x DGXX's entire current top line. Up to $250M annually with full expansion, over 7x current revenue. This one feels the most asymmetrical on raw math as a pure play on CBRS success.

98x P/S for the chip but 8 to 15x for the infra around it. I haven't had time this weekend to develop a super strong opinion on which of these plays I might like the most, but curious what some other traders think?

I saw @BULLOFBRITAIN is talking about $DGXX today, and he's always a great source.

[Gene Jones @GeneAJonesJr]

@DeepValueBagger $MU gonna be lit 🔥

[Gene Jones @GeneAJonesJr]

@datacentredanny Bull thesis right there

[Gene Jones @GeneAJonesJr]

$INTC 👀

[Alex @Alex_Intel_]

"Tan said he has plans for where he wants Intel to be in two years, five years and 10 years"

I managed to find Intel's internal market share goals for Foundry. Lip-Bu has a bold agenda vs TSMC!

[Gene Jones @GeneAJonesJr]

$GLXY

[unusual_whales @unusual_whales]

There is a 74% chance the Clarity Act is signed into law in 2026, per Polymarket:

[Gene Jones @GeneAJonesJr]

@JenniferLClimo @justinmilleresq Exactly

[Gene Jones @GeneAJonesJr]

$GLXY 👀

[Senator Tim Scott @SenatorTimScott]

Let’s make America the crypto capital of the world.