The Cerebras IPO going public today has serious red flags for retail buyers, even though it looks good on the surface.

• Cerebras lists on NASDAQ as CBRS at a $48 billion market cap, and the offering is 20 times oversubscribed.
• The company makes giant wafer-scale AI chips it claims are faster than Nvidia's, but it's tiny next to Nvidia, AMD, and Marvell.
• 86% of its revenue comes from related parties — mostly UAE entities and OpenAI — not real outside customers.
• The "profitable" earnings only exist because of a one-time $390 million accounting gain on warrants; without it the company loses money.
• OpenAI got $5.8 billion worth of penny warrants in a circular deal and is now also a $20 billion customer, which looks like a setup to pump the stock for insiders.

Outlook: The stock will likely pump hard at the open, but earnings will turn negative once the warrant effects show up, making it a swing trade rather than a long-term hold.