Backdoor way to profit from Cerebras

We have a new AI stock.

Cerebras, one of the hottest AI startups started trading today under the ticker CBRS.

It’s the largest IPO of 2026 so far.

Cerebras, if you haven’t heard the name, is one of the few chipmakers that could credibly rival Nvidia.

Cerebras is attacking AI chips from a totally different angle.

Nvidia stitches thousands of GPUs together to train and run AI models. Cerebras took a more radical approach. It builds chips the size of an entire silicon wafer.

Cerebras is making the largest computer chips in the world. And they’re purpose built specifically to run AI models faster than anyone else.

AI models are increasingly bottlenecked by how fast chips can move data around. Cerebras’ dinner-plate size design keeps more computing in one place. This can make AI run much faster and more efficiently.

That’s why OpenAI, Amazon, Meta, and other big AI players all signed big deals with Cerebras. And why investors are so excited about it.

It’s why many are calling Cerebras the “Nvidia killer”.

But here’s the problem…

One, Cerebras is not cheap.

At its IPO price, investors are paying a hefty price for a company that did just $510 million in revenue last year and is still losing money.

Its chips have also yet to be proven in large-scale clusters.

Then there’s the “small” issue of competing against Nvidia, the most powerful chip company on earth.

Cerebras might become a huge winner some day. But buying CBRS today means paying up a red-hot price for a product that’s yet to prove itself.

But you can still profit from its success. And with much less risk.

Buy the tiny infrastructure company Cerebras needs to scale.

We first recommended DGXX when it was trading for just $1.58.

Digi Power X shot up 435% since.

Digi Power X started as a bitcoin miner. It built data centers, bought a bunch of computer chips, and used them to solve complicated math equations in exchange for bitcoin.

When the price of bitcoin declined and AI’s need for data centers soared, DGXX decided to pivot.

This alone isn’t unique. Many bitcoin miners have retooled their data centers to serve AI needs, including Core Scientific (CORZ), HIVE Digital Technologies Ltd. (HIVE), IREN Ltd. (IREN), and a name that’s been very good to RiskHedge Live members, TeraWulf (WULF).

But none of these companies were able to secure a deal like DGXX. It recently announced a 10-year, $1.1 billion deal with Cerebras.

Why did Cerebras partner with DGXX?

And not the other half-dozen crypto miners turned AI feeders?

Power!

Digi owns its own power infrastructure, including a 60 megawatt natural gas plant in New York. It also owns the substation and the land at its data center site in Alabama, where Cerebras will install its chips.

As you likely know, power is a big bottleneck holding back AI. We simply do not generate nearly enough electricity to meet our AI needs.

It’s why big tech companies like Amazon and Meta are investing billions in nuclear power. Imagine reading that headline five years ago…

Most other players in this space are power “tenants” rather than power “owners.” While they have data centers, they lease power from a utility and don’t control the underlying infrastructure. So, they’re unable to move as fast as DGXX.

Rewiring a bitcoin miner to house AI chips is a process. AI chips run much hotter, so the cooling infrastructure needs to be massively upgraded.

Also, bitcoin miners can be turned on and off easily. If the price of electricity spikes or the price of bitcoin dips enough to make the mining unprofitable, they can simply flip the “off” switch.

AI data centers, on the other hand, need 99.99% uptime.

Thanks to its vertical integration, DGXX can transform its data centers faster than any other player in the space.

If Cerebras fails, DGXX still wins.

That’s what makes DGXX such a great buy.

Cerebras needs massive amounts of power, cooling, land, and infrastructure to scale its AI systems. DGXX provides all four.

Every new Cerebras deployment potentially means more revenue flowing through Digi’s infrastructure.

If Cerebras succeeds, DGXX wins alongside it.

But here’s the key…

DGXX doesn’t need Cerebras to dominate AI chips to succeed.

It simply needs AI infrastructure demand to keep booming.

And right now, demand for AI-ready power is growing much faster than supply.

As Nvidia CEO Jensen Huang warned recently: “Energy is now the main limit for AI growth, not computer chips.”

The International Energy Agency (IEA) estimates AI data centers will triple their electricity consumption by 2030.

If Cerebras stumbles, DGXX can still lease its infrastructure to another AI company desperate for power.

It’s a “picks and shovels” stock.

If you’re thinking of buying Cerebras stock, buy DGXX instead.

Thank you for reading.

Leon Wilfan, Analyst at RiskHedge Research.