THE DOCTOR IS BACK TO WORK

Rudy & Rooster · Rooster Global Portfolio Mastery Club · June 25, 2026 at 04:54  | Read on Substack ↗
Summary
The article argues that Cerebras's new CS-3 inference system, with custom Vicor power delivery and TSMC fabrication, delivers a 10x price/performance advantage over NVIDIA's GPUs for LLM inference, positioning Cerebras as a serious competitor. This validates the wafer-scale approach and implies direct revenue exposure for suppliers Vicor and TSMC, while intensifying competitive pressure on NVIDIA in the inference market.
  • Cerebras CS-3 costs $2.5M per system and serves a 120B parameter model at 1,800 tokens/sec, roughly 10x better price/performance than NVIDIA's B200 for inference.
  • Vicor supplies a custom 25kW power delivery module for every WSE-3, with content value comparable to TSMC's per-wafer revenue.
  • Cerebras has $1B in backlog and customers including Nebius, CoreWeave, and Fluidstack; Nebius receives gold-tier pricing at $2/hr per CS-3.
  • The WSE-3 chip is 4x the size of a reticle, fabricated on TSMC's N5 process, consuming 15kW power.
Length 26 chars
Category finance
Ideas
Rudy & Rooster Substack author, Rooster Global Portfolio Mastery Club
Author explicitly states Vicor supplies the custom 25kW power delivery for every WSE-3 and notes 'VICR content in each WSE is not too far from TSMC's content' — direct and substantial revenue exposure
Author explicitly states Vicor supplies the custom 25kW power delivery for every WSE-3 and notes 'VICR content in each WSE is not too far from TSMC's content' — direct and substantial revenue exposure to Cerebras's production ramp. Risk: Customer concentration risk; Cerebras's sales growth could slow or shift suppliers.
Rudy & Rooster Substack author, Rooster Global Portfolio Mastery Club
The WSE-3 is a massive 4x reticle die fabricated on TSMC's N5 process, generating significant wafer revenue per system; article implies TSMC's content per system is comparable to Vicor's.
The WSE-3 is a massive 4x reticle die fabricated on TSMC's N5 process, generating significant wafer revenue per system; article implies TSMC's content per system is comparable to Vicor's. Risk: Cerebras remains a small fraction of TSMC's total revenue; any design win loss has limited impact.
Rudy & Rooster Substack author, Rooster Global Portfolio Mastery Club
Article claims Cerebras CS-3 offers a 10x price/performance advantage over NVIDIA's B200 for LLM inference, directly challenging NVIDIA's dominant inference market share and potentially pressuring pri
Article claims Cerebras CS-3 offers a 10x price/performance advantage over NVIDIA's B200 for LLM inference, directly challenging NVIDIA's dominant inference market share and potentially pressuring pricing. Risk: NVIDIA's ecosystem and software moat remain strong; Cerebras's advantage may be narrow or temporary.
Rudy & Rooster Substack author, Rooster Global Portfolio Mastery Club
Nebius is named as a gold-tier customer receiving $2/hr per CS-3 pricing, giving it a cost advantage in offering inference services relative to competitors using NVIDIA hardware.
Nebius is named as a gold-tier customer receiving $2/hr per CS-3 pricing, giving it a cost advantage in offering inference services relative to competitors using NVIDIA hardware. Risk: Dependence on Cerebras supply; Nebius's own business model and profitability remain unproven.
Rudy & Rooster Substack author, Rooster Global Portfolio Mastery Club
CoreWeave has deployed 3 CS-3 systems, indicating adoption by a major GPU cloud provider and positively differentiating its inference offerings from hyperscalers.
CoreWeave has deployed 3 CS-3 systems, indicating adoption by a major GPU cloud provider and positively differentiating its inference offerings from hyperscalers. Risk: CoreWeave is heavily leveraged to NVIDIA as well; dual sourcing may dilute focus.
More from Rooster Global Portfolio Mastery Club

This newsletter, published June 25, 2026, features Rudy & Rooster discussing VICR, TSM, NVDA, NBIS, CRWV. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Rudy & Rooster  · Tickers: VICR, TSM, NVDA, NBIS, CRWV