Updated: Driven by strong demand related to artificial intelligence, Cerebras raises its annual sales forecast and shares soar

Updated the stock price data in paragraph 1, added charts, and included additional details in paragraphs 4, 8, and 11.

Reuters, November 12 - Cerebras Systems (CBRS.O) raised its annual revenue forecast on Thursday, benefiting from the surging demand for artificial intelligence computing power—as the company competes with Nvidia (NVDA.O) and cloud computing giants. Boosted by this news, its shares rose nearly 18% in after-hours trading.

The artificial intelligence boom has fueled demand for chips used to train models and support inference—the data processing that takes place when users query chatbots—greatly benefiting chip and cloud computing companies like Cerebras.

The company, based in Sunnyvale, California, is working around the clock to ramp up chip production to meet this demand and to honor a $20 billion, multi-year agreement (link) to provide computing power to OpenAI.

This agreement is seen as key to supporting its valuation. As of September 30, Cerebras had $26.1 billion in remaining performance obligations based on this agreement.

Cerebras now expects adjusted revenue for 2026 of between $940 million and $960 million, up from its previous estimate of $880 million to $890 million.

Its adjusted core cloud and service revenue, which reflects the impact of the OpenAI deal, more than tripled in the third quarter to $144.9 million.

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Cerebras' flagship product, the Wafer-Scale Engine (WSE), is a single chip the size of a dinner plate that contains trillions of transistors. The company says this design is more efficient than connecting thousands of smaller graphics processors.

By directly integrating memory on the chip, WSE is designed to reduce the latency involved in data transfers that arise when traditional graphics processors rely on separate, expensive high-bandwidth memory.

According to data compiled by London Stock Exchange Group (LSEG), adjusted third-quarter sales rose 70% to $230.9 million, beating analysts’ average estimate of $214.7 million.

Net loss per share widened to 67 cents from 41 cents a year earlier.

In July, Cerebras announced a partnership with AMD ( (link)AMD.O) to combine AMD’s Helios system with its WSE for inference computing. AMD hardware is set to be deployed in Cerebras data centers and will be offered through Cerebras Cloud in the second half of 2026.

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