NVDA<\/a>), whose gross margins are in the mid-70% \u2060area, and Advanced Micro Devices, whose gross margins are in the mid-50% range.<\/p>\nIt expects second quarter adjusted gross margin in the range of 36% to 38%, also below the 47% posted in the first \u200bquarter.<\/p>\n
Ben Bajarin, \u200bCEO of technology consulting firm Creative Strategies, said \u200bCerebras’ approach, which involves making some of \u200cthe world’s largest chips, is likely pressuring its gross margins because such large chips are difficult to manufacture.<\/p>\n
Cerebras also is temporarily renting back its own systems from an existing client to meet short-term demand while it builds out more data center capacity, Chief Financial Officer Bob Komin said on a post-earnings call.<\/p>\n
“The additional cost of renting third-party capacity will depress core cloud and other \u200cservices margin temporarily from current levels,” Komin said, adding \u200bCerebras aims to achieve gross margins of 60% over \u200bthe long term.<\/p>\n
Cerebras is in early discussions \u200bfor data centers in Israel, the UAE, Australia, Singapore, India and Indonesia, \u200cCEO Andrew Feldman said.<\/p>\n
It reported revenue of $193.4 \u200bmillion for the first quarter, \u200bcompared with $99.5 million in the same period a year ago. Cerebras said its adjusted net loss for the quarter was $2.5 million, narrower than analyst estimates of an adjusted loss \u200bof $36.75 million.<\/p>\n
For the second quarter, \u200cCerebras forecast adjusted sales of $194 million, above estimates of $174.34 million, according to LSEG data.<\/p>\n
(Reporting \u200bby Juby Babu in Mexico City and Stephen Nellis in San Francisco; Editing \u200bby Sahal Muhammed, Matthew Lewis and Chris Reese)<\/p>\n","protected":false},"excerpt":{"rendered":"By Stephen Nellis and Juby Babu Cerebras Systems (CBRS) in its debut report as a public company forecast…\n","protected":false},"author":2,"featured_media":655910,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,220300,733,4308,199260,220299,81303,195201,113921,86,56,54,55],"class_list":["post-655909","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-chip-companies","tag-gross-margin","tag-gross-margins","tag-profit-margins","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/655909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=655909"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/655909\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/655910"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=655909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=655909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=655909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}