Cerebras Systems reported a core revenue of $230.9 million for the quarter, surpassing the expected $214.7 million, and demonstrated a significant year-over-year growth of 70%. Despite a loss per share of 67 cents, which is not directly comparable to the expected loss of 14 cents, the company's outlook remains optimistic.
CEO Andrew Feldman emphasized the opportunity in hardware sales due to long lead times and high costs associated with GPUs. The announcement of a new deal with Microsoft, which is expected to start contributing to revenue in Q1 2027, adds to Cerebras' existing partnerships with Amazon and Oracle.
For the upcoming fourth quarter, Cerebras anticipates a core gross margin between 47% and 49%, alongside projected revenues of $310 million to $330 million, exceeding analyst expectations of a 42.1% margin and $271 million in revenue. The company aims to triple its revenue by 2027, targeting approximately $2.85 billion, slightly below the $2.92 billion forecasted by analysts.
Despite a 47% decline in share price since its Nasdaq debut in May, the recent developments position Cerebras favorably in the competitive AI chip market, particularly against Nvidia, especially following the resignation of Nvidia's CEO amid scandals