Cerebras stock jumps 23% on surprise profit, forecast hike, easing AI spending worries
Cerebras Systems experienced a 23% increase in stock prices after announcing adjusted revenue guidance for 2026. The company reported a quarterly profit of $29.82 million, surpassing analysts' expectations of a loss. Cerebras also revealed a significant rise in cloud and services revenue, driven in part by its OpenAI agreement. Additionally, the company has signed a cloud services deal with…
Cerebras Systems' shares rose 23% following the AI chipmaker's surprise profit and revised revenue forecast, according to a Reuters report. The artificial intelligence (AI) chip company raised its annual revenue guidance for 2026 to between $940 million and $960 million, exceeding analysts' average estimate of $887.04 million. Cerebras also disclosed that it signed a cloud services agreement with Microsoft and reported a significant improvement in profitability, with adjusted profit at $29.82 million in the third quarter, compared to an adjusted loss of $10.86 million in the same period last year.
CEO Andrew Feldman attributed delivery delays in Cerebras' $20 billion multi-year agreement with OpenAI to industry-wide shortages of land and power rather than chip manufacturing constraints. Despite a 47.2% drop in Cerebras shares from their May IPO price of $185, the company's latest results and improved outlook provide a boost as it seeks to challenge Nvidia in the fast-growing AI computing market.
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