Not Nvidia. Not Broadcom. This Little-Known Chip Supplier Could Be the AI Boom's Best-Kept Secret.

When investors think about the artificial intelligence boom, two names tend to dominate conversations. They are Nvidia (NASDAQ: NVDA), which supplies the graphics processing units (GPUs) powering much of the AI industry, and Broadcom (NASDAQ: AVGO), which helps tech companies develop custom silicon. But there's a lesser-known player that could be the industry's best-kept secret: Cerebras Systems (NASDAQ: CBRS).

Why speed is central to Cerebras' strategy

With Cerebras, it all starts with speed. Instead of the usual approach to chip design, Cerebras built its business around a large processor designed specifically for artificial intelligence: its Wafer-Scale Engine.

Image source: Getty Images.

The chip combines computing cores, memory, and communication capabilities into a single piece of silicon, reducing the need to move data between separate components. Through this approach, Cerebras aims to alleviate bottlenecks that can slow AI workloads.

That matters because training an AI model is only one part of the equation. Once a model is deployed, it's used for AI inference, answering questions, writing code, and even executing tasks for millions of users in real time. In fact, inference is becoming one of the fastest-growing trends in the AI market today.

Cerebras is investing in that shift by working to make AI responses faster.

As AI applications become more interactive, speed could become a huge competitive advantage. It could make conversations with AI chatbots faster and more fluid, while enabling AI agents to complete multi-step tasks more quickly, across domains ranging from software development and business workflows to scientific research.

The company's approach is already attracting attention from major AI players, including OpenAI.

OpenAI's partnership puts Cerebras on the map

Getting a major AI company to adopt its technology is a huge vote of confidence for any chipmaker. That's why Cerebras' relationship with OpenAI stands out.

The companies recently announced a multi-year agreement to deploy 750 megawatts of Cerebras compute capacity for OpenAI customers, with deployment planned in stages through 2028. The goal is to make AI responses faster, particularly for workloads that generate long answers, assist with coding, and power AI agents.

The partnership took an even bigger turn in August, when Cerebras announced that it's powering the Ultrafast mode for OpenAI's GPT-5.6 Sol. The company says the service can deliver up to 750 output tokens per second and run up to 14 times faster than with standard processing. This demonstrates how Cerebras' specialized hardware can greatly improve the user experience with advanced AI models.

For investors, the important point is that Cerebras' technology is already powering real commercial AI services, backed by one of the leading AI model providers. But proving its technology works is only part of the equation.

The company is also racing to build out its next-generation hardware.

An expanded technology portfolio

Cerebras recently announced its CS-4 system, which it says can deliver up to twice the speed of its predecessor, along with improved efficiency and faster token generation. CS-4 is part of a broader platform that Cerebras says will allow it to upgrade computing, cooling, and power delivery more independently. That matters because performance doesn't depend on chips alone.

Data centers must also deliver enough power, move data efficiently, and cool dense hardware. As a result, by adopting this design, the company is trying to improve the economics of running AI at scale. That makes Cerebras' technology better suited for large deployments, especially as AI data centers become bigger and more complex.

For investors looking beyond the biggest chipmakers, this continued product development is another reason to watch the company.

Is Cerebras stock a buy right now?

Nvidia and Broadcom may be providing much of the infrastructure behind AI, but the AI boom is also creating opportunities for lesser-known chipmakers. That could mean room for more than one winning chip design.

Looking ahead, Cerebras' focus on speed and inference could give it a major role in the next phase of the AI boom, especially as it launches broader platforms that can scale with AI data centers.

If demand for faster AI keeps growing, Cerebras could turn out to be one of the market's strongest under-the-radar chip suppliers.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom and Nvidia. The Motley Fool has a disclosure policy.