By Stephen Nellis and Juby Babu<\/p>\n
June 23 (Reuters) – Cerebras Systems on Tuesday forecast 2026 revenue that beat Wall Street estimates, but shares sank \u200cas the company’s gross margin forecast confirmed it will be an \u200cuphill battle to challenge AI chip leader Nvidia in key markets.<\/p>\n
Cerebras shares fell 7.8% in extended \u200btrading.<\/p>\n
Cerebras, which raised $5.5 billion in an initial public offering last month, is focused on inference, the process by which AI systems respond to user queries, and has tied much of its growth to OpenAI, including a $20 billion multiyear deal under \u200cwhich the ChatGPT creator will \u2060deploy 750 megawatts of Cerebras chips.<\/p>\n
Cerebras forecast full-year 2026 adjusted revenue of $855 million to $865 million, above analyst estimates of $823.90 million, \u2060according to LSEG data.<\/p>\n
But the company also forecast gross margins of 38% to 41% for 2026, down from 45% gross margins it reported for the first quarter. \u200bWhile those \u200bmargins were above analyst estimates of \u200b29.58%, they were far below those \u200cof rivals such as Nvidia, whose gross margins are in the mid-70%, and Advanced Micro Devices, whose gross margins are in the mid-50% range.<\/p>\n
Ben Bajarin, CEO of technology consulting firm Creative Strategies, said Cerebras’ approach, which involves making some of the world’s largest chips, is likely pressuring its gross margins because \u200csuch large chips are difficult to manufacture.<\/p>\n
The \u200bcompany reported revenue of $193.4 million for the first \u200bquarter, compared with $99.5 million in \u200bthe same period a year ago. Cerebras said its adjusted \u200cnet loss for the first quarter \u200bwas $2.5 million, narrower than \u200banalyst estimates of an adjusted loss of $36.75 million.<\/p>\n
For the second quarter, Cerebras forecast adjusted sales and gross margins of $194 million and 36% to \u200b38%, respectively. Both were \u200cabove estimates of $174.34 million and 24.6%, according to LSEG data.<\/p>\n
(Reporting by Juby \u200bBabu in Mexico City and Stephen Nellis in San Francisco; \u200bEditing by Sahal Muhammed and Matthew Lewis)<\/p>\n","protected":false},"excerpt":{"rendered":"By Stephen Nellis and Juby Babu June 23 (Reuters) – Cerebras Systems on Tuesday forecast 2026 revenue that…\n","protected":false},"author":2,"featured_media":515043,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,158857,218,219,135755,44604,90032,61,60,80],"class_list":["post-515042","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-analyst-estimates","tag-artificial-intelligence","tag-artificialintelligence","tag-cerebras-systems","tag-gross-margin","tag-gross-margins","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/515042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=515042"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/515042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/515043"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=515042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=515042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=515042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}