Cerebras Systems is heading toward its Nasdaq debut with stronger-than-expected investor demand, a sign that public market appetite for artificial intelligence infrastructure companies remains intense even as valuations across the sector continue to climb.

The AI chipmaker has raised the proposed price range for its initial public offering after orders reportedly exceeded available shares by more than 20 times. The company initially targeted a range of $115 to $125 per share but increased that range to between $125 and $135 as of May 8, according to the information provided.

The company plans to sell 28 million shares and could raise as much as $3.5 billion if pricing lands at the top of the updated range. That would place the deal among the largest technology IPOs in recent years and roughly in line with the scale of Arm Holdings’ 2023 public listing.

Demand for the offering has reportedly topped $10 billion, reflecting the level of investor interest surrounding companies tied to AI computing infrastructure. Shares are expected to trade on Nasdaq under the ticker CBRS.

Cerebras has spent years positioning itself as a challenger to Nvidia, whose chips dominate the market for training and running large AI models. The company argues that its wafer-scale processors offer performance advantages for certain AI workloads, particularly in training and inference for large language models.

Its hardware design stands apart from conventional chip architecture. Rather than cutting silicon wafers into many smaller processors, Cerebras uses the full wafer as a single chip. The result is a processor significantly larger than standard AI chips, with a higher concentration of compute cores and memory bandwidth in one unit.

That technological pitch has gained credibility through partnerships with major AI and cloud computing companies. Cerebras has worked with OpenAI and Amazon, relationships that investors appear to view as evidence that the company’s products have commercial relevance beyond research demonstrations or early-stage testing.

The company has also secured an $850 million credit facility, funds expected to support expansion of its data center operations and broader AI infrastructure efforts.

Even with the enthusiasm surrounding the offering, investors are likely to remain focused on a small set of risks. Cerebras’ business depends heavily on a limited number of large customers and strategic relationships, leaving the company exposed if any major partnership weakens or shifts direction.

Competition remains another central challenge. Nvidia continues to release new AI chip architectures, including its Blackwell platform and the forthcoming Rubin system, forcing rivals to maintain a rapid pace of research and development in a market where technological advantages can narrow quickly.

For investors unable to secure IPO allocations, attention may turn to how the stock trades once it reaches the public market. Oversubscribed offerings often open well above their IPO pricing, particularly when demand is concentrated around fast-growing sectors such as AI infrastructure.