Friday’s market saw significant activity driven by the soaring IPO of AI chipmaker Cerebras Systems and ongoing strength in tech giants like Nvidia and Cisco. Concurrently, SpaceX’s impending IPO faces hurdles due to serious governance concerns raised by major public funds, including the New York State Comptroller. Investors are also watching Bristol Myers Squibb’s new collaborations in China.
As markets closed on Thursday, paving the way for Friday's trading, investors were keenly watching several key stories. The daily 'Stocks @ Night' newsletter offers a peek into tomorrow's potential market drivers and a recap of today's movements.
One of the most talked-about events was the full debut of Cerebras Systems, an artificial intelligence chipmaker. After an initial public offering (IPO) price of $185, the stock dramatically surged to $386.34 on its first trading day before settling at $311.07. Post-market trading saw a further 5% rise, pushing it close to $330 per share. CNBC's Jim Cramer of "Mad Money" noted that while it was "a perfectly timed IPO," investors were "taking a leap of faith" at its current valuation. Friday's full trading day for Cerebras (CBRS) promises continued volatility and interest.
Attention is also turning to SpaceX, with CNBC TV's Leslie Picker reporting that an IPO filing is expected soon. However, major public funds are expressing significant governance concerns. Sources indicate that finding enough buyers to fill the order book is proving challenging due to these issues. New York State Comptroller Thomas DiNapoli issued a strong statement Thursday, highlighting "significant risks to long-term investors" in SpaceX's reported governance structure. These concerns include super voting shares for a select few, mandatory arbitration of shareholder claims, high barriers to executive accountability, and limits on shareholder legal actions, which DiNapoli called "anathema to the transparency and legitimate board oversight required for a major publicly traded corporation." Leslie Picker will delve deeper into this on "Squawk Box" Friday at 6:30 a.m.
For investors looking for exposure to SpaceX now, several funds offer an allocation: the Fundrise Innovation Fund (VCX) holds about 5% in SpaceX, though it has experienced significant volatility, up 131% in May but down 62% from its March 25 high. The Baron Focused Growth Fund (BFGIX) has a 19% allocation but requires a minimum investment of $1,000,000. It has gained 14% in the past year. Cathie Wood's ARK Venture Fund (ARKVX) has a 14% allocation, gaining roughly 25% in the last six months and hitting a high last week.
The tech sector continues its robust performance. Cisco Systems impressed with strong earnings on Wednesday, while Nvidia (NVDA) extended its rally. CEO Jensen Huang's recent visit to China with President Donald Trump signals potential chip deals, further boosting confidence. The excitement surrounding Cerebras's IPO may also be providing an uplift to the broader AI complex. Cisco saw a 13.4% jump on Thursday, hitting a new high and gaining around 40% in the past month. Nvidia also reached new highs, up approximately 20% in the last month.
In pharmaceuticals, Bristol Myers Squibb announced plans to increase collaboration with Chinese companies for drug development and testing. CNBC TV's Angelica Peebles will provide more details on this development Friday. Bristol Myers Squibb (BMY) is currently down 10% from its March high.
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