Cerebras shares surge as earnings beat expectations and raised outlook eases concerns about AI spending

Reuters, November 13 - On Friday, Cerebras Systems (CBRS.O) shares soared about 17% after the AI chipmaker raised its annual revenue forecast (link) and posted earnings that beat expectations, signaling strong momentum in its challenge to NVIDIA NVDA.O in the AI chip market.

If the rally holds, the jump in share price would add nearly $4 billion to Cerebras’ market capitalization, easing investor concerns over massive AI spending—worries that were heightened this week by NVIDIA CEO Jensen Huang's (link) resignation.

Here are more details:

• As of Thursday’s close, Cerebras’ share price was down 47.2% from its IPO (link) in May, when it issued shares at $185 per share

• Cerebras now expects adjusted 2026 revenue to be between $940 million and $960 million, above its previous forecast of $880 million to $890 million

• According to data compiled by the London Stock Exchange Group (LSEG), analysts previously expected average revenue for the period to be $887.04 million

• The chipmaker reaffirmed its plan to triple revenue by 2027 and said it had signed a cloud services agreement with Microsoft MSFT.O, with details to be announced next year
  

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• On the earnings call, CEO Andrew Feldman said delays in deliveries under Cerebras’ multi-year $20 billion contract with OpenAI (link) were due to industry-wide shortages of land and power, rather than chip manufacturing limitations

• In the third quarter, adjusted cloud services and business revenue—reflecting the impact of the OpenAI contract—more than tripled to $144.9 million.

• Adjusted profit was $29.82 million, compared with an adjusted loss of $10.86 million a year ago. Analysts had previously expected an adjusted loss of $38.40 million
  

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