Forget Cerebras Systems’ IPO and Focus on This Tech Giant Instead

The hot ticker on every retail trader’s screen this week is Cerebras Systems (NASDAQ:CBRS), the AI chip designer whose IPO surged 65% on its IPO day and is now drawing the predictable wave of FOMO from anyone hunting the next Nvidia.

But here’s what you should actually be watching.

Cerebras went public into the most crowded narrative in markets. The stock closed at $311.07, already well off its 52-week high of $385. There is no trailing P/E, no revenue per share, no operating margin and no analyst target price available. You are buying a story competing directly against Nvidia, the hyperscalers’ in-house silicon, and a dozen other AI chip startups. For a retirement-focused portfolio, this is the textbook setup for post-IPO overextension.

Meanwhile, Alibaba (NYSE:BABA | BABA Price Prediction), a $340.98 billion Chinese tech giant trading at a forward P/E of 21, a PEG ratio of 0.857, and a price-to-sales ratio of 0.333. The market is ignoring it.

Three reasons to redirect your attention while the crowd chases chips.

First, Alibaba’s AI and cloud business is already commercialized at scale. Fiscal Q4 2026, reported May 13, 2026, put Cloud Intelligence Group revenue at $6.035 billion, up 38% YoY, with AI-related products posting an 11th consecutive quarter of triple-digit growth and now contributing 30% of external cloud revenue. CEO Eddie Wu said, “Alibaba’s full-stack AI investments have progressed from incubation to commercialization at scale.” The full stack includes the Qwen large language model, proprietary T-Head Zhenwu PPU chips with more than 100,000 deployed, and a Qwen consumer app that surpassed 300 million monthly active users. Recent easing of U.S. chip export restrictions only widens that runway.

Second, the consolidated business dwarfs the IPO story stock. Fiscal year 2026 revenue came in at $148.40 billion, net income at $14.81 billion, EPS at $3.89. Total assets sit at $276.83 billion, shareholders’ equity at $153.80 billion, cash and equivalents at $19.07 billion. Taobao Instant Commerce grew 57% YoY to $2.898 billion and 88VIP membership surpassed 62 million. The trailing P/E is 25, EV/EBITDA is 17, and the Street is on board: 8 strong buy, 31 buy, 2 hold and 1 strong sell ratings with a target price of $188.98.

Third, capital is actively being returned. The board declared an annual cash dividend of $0.13125 per ordinary share, or $1.05 per ADS, roughly $2.5 billion aggregate, with a June 11, 2026 record date and July 6, 2026 payment. Alibaba repurchased 73 million ordinary shares for $1.046 billion in the fiscal year ended March 31, 2026 and raised $3.2 billion in convertible notes plus HK$12 billion in exchangeable bonds to fund cloud and international expansion. Capital is available and being deployed deliberately.

Yes, Q4 carried a $123 million operating loss, adjusted EBITA fell 84% to $740 million, and free cash flow was negative $2.51 billion on $3.90 billion of capex. The market is treating that investment cycle as a reason to look away. That is precisely why BABA trades at 0.333 times sales while money pours into a chip IPO with no public fundamentals attached.