Cerebras raises annual targets on strong AI chip demand

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Aug 12 : Cerebras Systems raised its annual revenue and gross margin forecasts on Wednesday, buoyed by robust demand for its chips from companies ramping up data-center capacity to power AI services.

The chip designer is banking on growing demand for inference, the data crunching that occurs when a user queries a chatbot, as it seeks to challenge Nvidia's dominance in the AI processor market.

Cerebras' flagship wafer-scale engine (WSE) is a single chip the size of a dinner plate containing trillions of transistors, a design that it says is more efficient than connecting thousands of smaller graphics processors together, as Nvidia does.

By placing memory directly on the chip, the WSE is built to accelerate inference and reduce the data-transfer delays associated with conventional graphics processors that rely on separate high-bandwidth memory.

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"We have made rapid progress in key areas required to deliver exceptional growth against our remaining performance obligations of $25.4 billion (contract revenue expected to be recognized in the future), and plan to more than triple revenue in 2027," finance chief Bob Komin said.

The Sunnyvale, California-based company expects 2026 adjusted revenue between $880 million and $890 million, higher than its previous forecast of $855 million to $865 million.

Annual adjusted gross margin is forecast at 41 per cent to 43 per cent, up from 38 per cent to 41 per cent projected earlier. Analysts, on average, estimate 35.89 per cent, according to data compiled by LSEG.

Second-quarter sales rose 74.3 per cent to $180.11 million. Adjusted loss was $6.91 million, narrower than the $40.5-million loss a year ago.

Cerebras is racing to expand chip volumes to support a $20 billion multi-year agreement to provide AI compute to OpenAI, a deal viewed as key to justifying its valuation.

Its core cloud and services revenue, which reflects the OpenAI ramp, nearly quadrupled to $127.73 million in the second quarter.

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