By Anhata Rooprai and Max A. Cherney <\/p>\n
Aug 12 (Reuters) – Cerebras Systems raised its annual revenue and gross margin forecasts on Wednesday, buoyed by robust demand for its chips from \u200ccompanies ramping up data-center capacity to power AI services. <\/p>\n
Still, its shares were down more \u200cthan 14% in extended trading after closing up 11.6% in the regular session. The stock has gained 15.5% week-to-date. <\/p>\n
The chip designer \u200bis banking on growing demand for inference, the data crunching that occurs when a user queries a chatbot, as it seeks to challenge Nvidia’s dominance in the AI processor market. <\/p>\n
Cerebras’ flagship wafer-scale engine (WSE) is a single chip the size of a dinner plate containing trillions of transistors, a design that it says is \u200cmore efficient than connecting thousands of \u2060smaller graphics processors together, as Nvidia does. <\/p>\n
By placing memory directly on the chip, the WSE is built to accelerate inference and reduce the data-transfer delays associated with \u2060conventional graphics processors that rely on separate high-bandwidth memory. <\/p>\n
Placing memory directly on the chip has lessened the impact of surging memory prices and placed it in a better position to compete with Nvidia, Cerebras CEO Andrew \u200bFeldman \u200btold Reuters in an interview. <\/p>\n
“Nvidia’s prices have gone through \u200bthe roof because of HBM prices,” Feldman \u200csaid, referring to the high-bandwidth memory included with AI processors. “This is a battleground, and if they can’t deliver or they’re having significant component price increases, of course that helps.” <\/p>\n
The Sunnyvale, California-based company expects 2026 adjusted revenue between $880 million and $890 million, higher than its previous forecast of $855 million to $865 million. <\/p>\n
“We have made rapid progress in key areas required to deliver exceptional growth against our remaining performance obligations of $25.4 billion (contract \u200crevenue expected to be recognized in the future), and plan \u200bto more than triple revenue in 2027,” finance chief Bob \u200bKomin said. <\/p>\n
Annual adjusted gross margin is forecast \u200bat 41% to 43%, up from 38% to 41% projected earlier. Analysts, on \u200caverage, estimate 35.89%, according to data compiled by \u200bLSEG. <\/p>\n
Second-quarter sales rose 74.3% \u200bto $180.11 million. Adjusted loss was $6.91 million, narrower than the $40.5-million loss a year ago. <\/p>\n
Cerebras is racing to expand chip volumes to support a $20 billion multi-year agreement to provide AI compute to OpenAI, \u200ba deal viewed as key to \u200cjustifying its valuation. <\/p>\n
Its core cloud and services revenue, which reflects the OpenAI ramp, nearly \u200bquadrupled to $127.73 million in the second quarter. <\/p>\n
(Reporting by Anhata Rooprai in Bengaluru and Max \u200bA. Cherney in San Francisco; Editing by Shilpi Majumdar) <\/p>\n","protected":false},"excerpt":{"rendered":"By Anhata Rooprai and Max A. Cherney Aug 12 (Reuters) – Cerebras Systems raised its annual revenue and…\n","protected":false},"author":2,"featured_media":137848,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[6744,3659,10139,3013,18089,68112,53592,6306,58,61622],"class_list":["post-137847","post","type-post","status-publish","format-standard","has-post-thumbnail","category-agi","tag-agi","tag-ai-processors","tag-annual-revenue","tag-artificial-general-intelligence","tag-cerebras-systems","tag-contract-revenue","tag-graphics-processors","tag-gross-margin","tag-nvidia","tag-robust-demand"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/137847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=137847"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/137847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/137848"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=137847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=137847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=137847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}