AI chipmaker Cerebras posts record Q3 revenue, up 55%
The company raised its full-year core revenue outlook to between US$940 million and US$960 million.
Cerebras Systems Inc., an artificial intelligence chip manufacturer, reported higher-than-expected third-quarter revenue, leading to a 17% increase in its stock price. Although the company reported a loss of 67 cents per share, it beat Wall Street's guidance of a 14-cent-per-share loss. Revenue for the period reached $230.9 million, a 70% increase from the previous year, surpassing the Street's target of $214.7 million.
Cerebras' adjusted operating margin of -14% was better than the previous guidance of -24%. CEO Andrew Feldman highlighted the company's advantage over competitors due to long lead times in GPUs and growing order backlogs. The company has a significant backlog of $26 billion, with a substantial portion related to the deal with OpenAI Group PBC.
Cerebras is also partnering with Amazon Web Services Inc., Oracle Corp., and Microsoft Corp., although the size of these deals remains undisclosed. Feldman revealed that the company is assessing its financing options to meet customer demand and tackle the growing backlog. While Nvidia dominates the AI chip industry, Cerebras remains optimistic about the future, projecting a threefold increase in revenue by the end of fiscal 2027, resulting in around $2.85 billion in revenue.
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