Cerebras guided Q3 core revenue $214M-$216M, raised full-year to $880M-$890M. Shares fell 14% as net loss widened on stock comp. CEO Feldman sees demand 'through the roof,' expects revenue to triple.
Cerebras Systems raised its full-year guidance in its second earnings report since going public in May. Shares fell about 14% in extended trading.
The chipmaker expects third-quarter core revenue of $214 million to $216 million, it said Wednesday in a statement. Analysts surveyed by LSEG had forecast $212.6 million, though it was not clear if that figure referred to core revenue. Second-quarter core revenue came in at $210 million. On a GAAP basis, Cerebras reported revenue of $180.1 million, which excludes pass-through items.
Cerebras recorded a net loss of $450.5 million, swinging from a profit of $309.5 million, or $1.91 per share, a year earlier. The loss was largely driven by stock-compensation costs of $386.6 million.
The company lifted its full-year core revenue outlook to between $880 million and $890 million, from a prior range of $855 million to $865 million. Chief Executive Officer Andrew Feldman said in an interview that AI demand is "through the roof," and that customers are paying a premium for its inference chips optimized for low-latency tasks.
Cerebras goes after Nvidia in the AI chip market for workloads requiring fast responses. The company expects core gross margin to expand to 38% to 40% in the current quarter, addressing investor concern. "Gross margins are in a good spot, and growing, because fast inference is priced at a premium," Feldman said. Cerebras also increased the AI output of its systems, he added.
The stock, which closed Wednesday at $262.06, remains 42% above its May IPO price of $185. Cerebras raised $6.4 billion in the offering.
Cerebras reported $25.4 billion in remaining performance obligations, a sign of what it called "extraordinary future demand." Feldman said the company will benefit from scale. "We will manufacture more efficiently. We'll get better pricing on componentry. We'll amortize our manufacturing organization over more units," he said. Cerebras expects revenue to triple in the next fiscal year.
In recent weeks, Cerebras announced a partnership with AMD, with products entering production later this year. It also said OpenAI can use its chips to serve the latest model, GPT-5. Sol. The company's cloud business generated $126 million in revenue during the June quarter.
Nvidia, with an Alpha Score of 74, dominates AI chips. Cerebras is carving a niche in fast inference. Nvidia's profile shows its market position.
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