{
  "id": 696849,
  "title": "Cerebras raises annual targets on strong AI chip demand",
  "url": "https://urgent.news/2026/08/12/cerebras-raises-annual-targets-on-strong-ai-chip-demand",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-12T20:07:32.000Z",
  "source": {
    "name": "Channel News Asia",
    "slug": "channel-news-asia",
    "url": "https://www.channelnewsasia.com/business/cerebras-raises-annual-targets-strong-ai-chip-demand-6315786"
  },
  "original_language": "en",
  "account": "On August 12, Cerebras Systems boosted its annual revenue and gross margin projections, driven by heightened demand for its AI chips from businesses expanding data center capacity. However, the company's shares experienced a decline of over 14% in extended trading, reversing the 11.6% increase observed during regular trading hours. Cerebras' shares have still gained 15.5% this week.\n\nThe firm's primary strategy hinges on surging demand for inference processing, which involves analyzing user queries for AI services like chatbots. The company's flagship chip, the wafer-scale engine (WSE), features a single, dinner-plate-sized silicon wafer with trillions of transistors. This design is claimed to be more efficient than Nvidia's approach of connecting numerous smaller graphics processors, as it allows memory to be directly placed on the chip. This innovation is intended to mitigate the effects of rising memory prices and enable Cerebras to compete more effectively with Nvidia, according to CEO Andrew Feldman.\n\nFeldman told Reuters that Nvidia's component prices have skyrocketed due to high-bandwidth memory (HBM) costs, giving Cerebras a better chance to win in this market. The Sunnyvale, California-based company now anticipates 2026 adjusted revenue between $880 million and $890 million, surpassing its earlier forecast of $855 million to $865 million. Additionally, CFO Bob Komin revealed that the company is on track to triple its revenue by 2027, exceeding the $25.4 billion in remaining performance obligations it has.\n\nCerebras' gross margin is expected to hover between 41% and 43% for the year, up from the previous projection of 38% to 41%. Analysts, on average, estimate the margin at 35.89%. Second-quarter sales surged 74.3% to $180.11 million, and the adjusted loss narrowed to $6.91 million, compared to a $40.5-million loss a year earlier. The core cloud and services segment, which includes OpenAI revenue, nearly quadrupled to $127.73 million in the second quarter.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "Cerebras raises annual targets on strong AI chip demand",
        "url": "https://urgent.news/2026/08/12/cerebras-raises-annual-targets-on-strong-ai-chip-demand-698842",
        "published": "2026-08-12T20:07:32.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}