Wall Street Brunch: IPOs Headline The Week's Show
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Wall Street Breakfast5.74M FollowersSubscribe5ShareSaveCommentsSummaryCerebras Systems (CBRS) leads a robust IPO week, with strong demand potentially lifting its offering price and proceeds above initial estimates.Applied Materials (AMAT) is expected to deliver another beat-and-raise quarter, driven by AI infrastructure demand and its $5B EPIC Center initiative.China-related export restrictions pose a $600M FY2026 revenue headwind for AMAT, highlighting geopolitical risk to future earnings.April CPI data is in focus, with energy and food inflation expected to drive headline rates higher and influence Fed policy outlook. bymuratdeniz/iStock via Getty Images Listen below or on the go via Apple Podcasts and Spotify Cerebras headlines a busy IPO week with surging investor demand. (0:17) Applied Materials faces AI demand questions. (1:12) April CPI arrives with energy prices driving inflation concerns. (1:55) As earnings season winds down, attention is shifting to the IPO market. AI chipmaker Cerebras Systems (CBRS) headlines a busy week for new listings. Reports indicate the company may raise its price range to $125 to $135 per share as soon as Monday, lifting the potential proceeds to about $3.78B from $3.5B. The deal has reportedly attracted orders more than 20 times the shares available, and the range could still move higher. Cerebras plans to sell 28M shares on the Nasdaq under the ticker CBRS, with Morgan Stanley, Citigroup, Barclays and UBS leading the underwriting syndicate. Also expected to begin trading are geothermal developer Fervo Energy (FRVO), which has a data center partnership with Google (GOOGL), and data center REIT Blackstone Digital Infrastructure Trust (BXDC), both with projected valuations north of $5B. Other IPOs slated for the week include GMR Solutions (GMRS), EagleRock Land (EROK), and Riku Dining Group (RIKU). On the earnings calendar, Applied Materials (AMAT) takes center stage Thursday. Investors are looking for another beat-and-raise quarter from one of the market’s key AI infrastructure beneficiaries. The primary growth drivers remain gate-all-around transistor demand and high-bandwidth memory. AMAT’s $5B EPIC Center initiative is also in focus, with investors watching for updates on customer co-development, commercialization timelines, and the strength of AI-related demand. China remains the principal risk. Management has already flagged a potential $600M revenue headwind in FY2026 tied to tighter U.S. export restrictions. Elsewhere this week: Simon Property Group (SPG) reports Monday, Oklo (OKLO) Tuesday, and Tencent (TCEHY), Cisco (CSCO), and Alibaba (BABA) on Wednesday. On the economic front, the April consumer price index arrives Tuesday, with the headline rate expected to rise to 3.6% while core inflation holds near 2.6%. Wells Fargo economists say elevated energy prices tied to Middle East tensions are beginning to generate broader spillovers. “Energy goods are poised for a 6% monthly gain as higher crude prices continue to pass through to the pump,” they wrote. “Food at home is likely to accelerate after March’s pullback, with grocery prices strengthening later this year amid rising transportation and fertilizer costs.” They added that services inflation, excluding shelter, could run hot as higher jet fuel prices push airfares higher. Seeking Alpha analyst Chris Lau said a hotter CPI print would increase the odds of tighter policy, though Fed officials will need to assess whether energy-driven inflation tied to the Strait of Hormuz proves transient or persistent. In the news this weekend, Lumentum Holdings (LITE) is set to join the Nasdaq-100 (NDX) (QQQ), replacing real estate services firm CoStar Group (CSGP) later this month. Nike (NKE) is facing a proposed class action lawsuit alleging it failed to refund tariff-related costs passed on to customers through higher prices. The case is part of a broader wave of lawsuits against U.S. companies after the Supreme Court ruled against sweeping tariffs imposed under the International Emergency Economic Powers Act last year. In the federal complaint, plaintiffs argue Nike is not entitled to retain the “significant” refunds it is expected to receive following the ruling. Nike has said the tariffs forced it to pay roughly $1B in import levies. And for income investors: Apple (AAPL) goes ex-dividend Monday, paying out May 14. Visa (V) goes ex-dividend Tuesday, with a June 1 payout. Target (TGT) goes ex-dividend Wednesday, also paying out June 1. Delta (DAL) goes ex-dividend Thursday, with a May 28 payout.This article was written byWall Street Breakfast5.74M FollowersSubscribeWall Street Breakfast, Seeking Alpha's flagship daily business newsletter, is a one-page summary that gives you a rapid overview of the day's key financial news. It is designed for easy readability on the site or by email (including mobile devices) and is published before 7:30 AM ET every market day.
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