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By most measures, Cerebras Systems (CBRS +10.30%) delivered an outstanding second quarter.
The artificial intelligence (AI) computing specialist grew its non-GAAP (adjusted) revenue 103% year over year to $209.9 million. Its inference cloud business nearly quadrupled, and management raised its full-year outlook to a range of $880 million to $890 million in adjusted revenue.
But the most important number in the mid-August update wasn't on the income statement at all. Cerebras ended June with $25.4 billion in remaining performance obligations, the backlog of contracted work it hasn't yet delivered or recognized as revenue. That's nearly 29 times the revenue management expects for all of 2026, a figure lifted by data center costs passed through to OpenAI.
A figure that large deserves scrutiny. The company's own filings say where to look: at a single agreement with OpenAI.
Image source: Getty Images.
The backlog arrived almost all at onceIn December 2025, Cerebras signed a master relationship agreement with the ChatGPT maker under which OpenAI committed to purchase 750 megawatts of computing capacity for AI inference -- a deal Cerebras has valued at more than $20 billion. OpenAI also holds an option to buy an additional 1.25 gigawatts of capacity by the end of 2030.
Remaining performance obligations were $24.6 billion at the close of 2025, then edged up to $25.0 billion in March and $25.4 billion in June. The balance grew only about 3% over the first half of 2026. Nearly all of it was on the books before 2026 began. And Cerebras says in its latest quarterly filing that a significant amount of the balance is attributable to its obligations under the OpenAI agreement.
Cerebras recognized $56.8 million of revenue under the arrangement in the second quarter, or about 32% of the company's $180.1 million in revenue under generally accepted accounting principles (GAAP), which grew 74% year over year.
When does the backlog become revenue?The backlog converts slowly, by design. Cerebras expects to recognize only about 22% of the $25.4 billion (about $5.6 billion) over the 24 months ending June 30, 2028.
Another 43% should arrive between months 25 and 48, with the rest coming later. Of course, the timing can shift at the customer's request.
It's worth noting, though, that the near-term share has moved up. At the close of 2025, Cerebras expected about 15% of the balance to convert in the 24 months through 2027. The latest figure is 22%, though it covers a window ending six months later.
The conversion takes years partly because Cerebras is still building the thing it has sold. Capacity for OpenAI deploys in stages from 2026 through 2028. Cerebras says more than 600 megawatts of data center capacity is live or under contract for delivery by the end of 2027, with manufacturing capacity set to grow more than tenfold in 2026. And just this week, Cerebras announced a new 165-megawatt data center in Finland.
OpenAI is even helping to finance the build-out, advancing Cerebras a $1 billion working capital loan in January.
Concentration isn't new hereIn 2025, Mohamed bin Zayed University of Artificial Intelligence accounted for 62% of the company's revenue, and Group 42 accounted for another 24%. Those figures are shares of last year's revenue, not of the backlog.
But the pattern held in the second quarter, when three customers each accounted for at least 10% of revenue, or 76% of it between them. The company doesn't say exactly how much of the $25.4 billion sits with OpenAI. Either way, a short list of buyers is doing most of the buying.
That matters because of the stock's valuation. With shares around $215 as of this writing (down about 44% from their 52-week high of $386.34), the whole company is valued near $51 billion -- nearly 58 times the adjusted revenue management expects this year, for a company still posting operating losses. Even if revenue more than triples in 2027, as management plans, the stock would trade at about 19 times those expected sales.
Today's Change
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What, then, is the backlog worth to a shareholder? A lot, I think -- just not everything the headline number implies.
The $25.4 billion includes a customer's multiyear commitment, not revenue in hand. And most of it is scheduled to convert after mid-2028, by a company that must build enormous capacity on time, much of it for one buyer whose needs could change.
The business itself is executing well. Adjusted gross margin improved about nine percentage points from a year ago, and Cerebras holds about $8.6 billion in cash and investments after May's initial public offering.
Ultimately, the backlog is evidence of extraordinary demand and arguably the best reason to keep watching Cerebras closely. But I'd want to see the OpenAI revenue step up for a few more quarters before paying today's price.
Laitos toteutetaan seitsemän vuotta kattavalla kapasiteettisopimuksella, ja investointi tukee paikallista kehitystä ja työllisyyttä arviolta 1,0–1,7 miljardilla eurolla | Source: Cerebras Systems Inc.
MIKKELI, Suomi, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems (NASDAQ: CBRS) julkisti tänään uuden tekoälykäyttöön tarkoitetun datakeskushankkeen Mikkelissä. Datakeskuksen kehityksessä on mukana Compute Nordic Finland. Laitoksen IT-kapasiteetti kasvaa vähitellen sopimukseen perustuen 165 megawattiin, jotta se voi tarjota tehokasta tekoälylaskentaa. Ensimmäisen 50 megawattia tarjoavan osan rakentaminen on jo meneillään.
Sopimus on toteutettu useilla palvelutilauksilla, joista kullakin on seitsemän vuoden sopimuskausi. Cerebras saa pitkäaikaisen ja tarpeisiin rakennetun infrastruktuurin tukemaan maailmanlaajuisesti kasvavaa tekoälylaskennan kysyntää. Mikkelin seudulla datakeskus vahvistaa teollista perustaa ja tarjoaa arvioidusti merkittäviä tuloja ja pysyviä työmahdollisuuksia.
"Kumppanuus Cerebrasin kanssa ei ole arvailua tulevasta kysynnästä vaan sopimukseen perustuva vaiheittainen rakennushanke, joka vastaa tämänhetkiseen ja tulevaan tekoälylaskennan kysyntään markkinoilla", sanoo Pyry Virrantaus, Compute Nordic Finlandin toimitusjohtaja. "On hienoa päästä kehittämään tätä kapasiteettia Mikkelissä yhdessä paikallisista ja valtakunnallisista organisaatioista koostuvan kumppaniverkoston kanssa. Kumppanimme ovat valmiit toteuttamaan hankkeen ja kokoamaan siihen tarvittavan työvoiman."
Tehokkaampi tekoälylaskenta megawattia kohti
Cerebras ja Compute Nordic suunnittelivat Mikkelin laitoksen alusta alkaen tehokkaaksi, jotta sähkön ja veden käyttö voidaan optimoida. Laitos on suunniteltu hyödyntämään suljettuja jäähdytysjärjestelmiä, joissa vesi kierrätetään jatkuvasti sen sijaan, että vettä otettaisiin koko ajan kunnallisesta verkostosta. Laitosalue tukee myös hukkalämmön talteenottoa, joten tekoälylaskennassa syntyvää lämpöenergiaa voidaan käyttää ympäröivän yhteisön hyväksi.
"Arkkitehtuurimme on rakennettu hyödyntämään jokainen käytetty megawatti optimaalisesti tekoälylaskennassa", sanoo Andrew Feldman, Cerebrasin toimitusjohtaja ja yksi perustajista. "Mikkelissä voimme hyödyntää tätä tehokkuutta datakeskuksessa, joka on suunniteltu alusta alkaen suljetun kierron jäähdytystä ja hukkalämmön hyödyntämistä varten."
Pitkäaikainen teollinen perusta Etelä-Savoon
Cerebrasin pitkän aikavälin sitoutuminen Mikkeliin heijastaa yhtiön laajempaa lähestymistapaa datakeskusten kehittämiseen. Hanke ei ole vain tilapäinen rakennusprojekti, vaan tekoälyinfrastruktuurin ympärille rakennetaan pitkäaikaista teknistä osaamista ja laadukkaita, pysyviä työpaikkoja. Kysyntä Cerebrasin wafer-scale-tason tekoälylaskennalle kasvaa jatkuvasti kaikkialla maailmassa. Mikkelin hanke vahvistaa yhtiön infrastruktuuria tarkoitustaan varten suunnitellulla datakeskuksella, jonka kapasiteetti laajenee ensin alkuvaiheen 50 megawatista 80 megawattiin. Lopullinen kapasiteetti tulee olemaan 165 megawattia.
Rambollin toteuttamassa Suomen datakeskusten markkinatutkimuksessa ja vaikutustenarviointiraportissa (12. syyskuuta 2025) arvioitiin, että täydessä 165 megawatin laajuudessaan hanke tarkoittaa alueelle 1,0–1,7 miljardin euron investointia. Sen arvioidaan myös luovan 80–250 pysyvää työpaikkaa ja tuovan vuodessa kiinteistöverotuloja 0,8–2,5 miljoonaa euroa.
Suurten datakeskushankkeiden työllistävä vaikutus on usein tilapäinen ja keskittyy vahvasti rakennusaikaan. Cerebras ja Compute Nordic kuitenkin korostavat, että Mikkelin laitos luo pysyviä teknisiä työpaikkoja, joille on tarvetta koko datakeskuksen käyttöiän ajan. Työtehtävät liittyvät esimerkiksi operatiivisiin toimintoihin, sähkö- ja jäähdytystekniikkaan, verkkotoimintoihin, turvallisuuteen ja kiinteistönhoitoon. Lisäksi työvoimaa vaaditaan lyhyemmällä tähtäimellä rakentamisessa ja paikallisen toimitusketjun toiminnoissa.
"Tällaisen hankkeen selkein mittari ei ole alkuvaiheen rakennustöiden työllistävä vaikutus vaan se, millaisia työpaikkoja on jäljellä 10 tai 20 vuoden päästä", Virrantaus sanoo. "Mikkelin kokonaisuutta luodessamme otimme huomioon vakituiset työpaikat, erilaiset uramahdollisuudet, paikalliset toimittajat ja pitkäjänteisen taloudellisen toiminnan."
Laaja kumppaniverkosto
Mikkelin hanketta kehitetään tiiviissä yhteistyössä Mikkelin kaupungin ja Etelä-Savon keskeisten alueellisten sidosryhmien kanssa. Mukana on myös laaja verkosto suomalaisia kumppaneita, jotka keskittyvät rakentamiseen, suunnitteluun, energiaan, rekrytointiin ja asiantuntijapalveluihin.
Compute Nordic Finland johtaa projektikehitystä, operaattorivastuuta, asiakasrajapintaa ja hankkeen yleistä hallintaa.
Tietoa Cerebras Systemsistä
Cerebras Systems (NASDAQ: CBRS) rakentaa maailman nopeinta tekoälyinfrastruktuuria. Cerebrasin tiimi koostuu huippuluokan tietokonearkkitehdeistä, tietojenkäsittelytieteilijöistä, tekoälytutkijoista ja insinööreistä ja kehittää salamannopeita tekoälyratkaisuja innovaatioiden ja keksintöjen avulla. Uskomme, että nopea tekoäly muuttaa maailmaa. Johtavat kansainväliset yritykset, tutkimuslaitokset ja valtiot valitsevat Cerebrasin tekoälytyökuormiensa suorittamiseen. Cerebrasin ratkaisut ovat käytettävissä sekä toimipisteissä että pilvessä. Katso lisätietoja osoitteesta cerebras.ai.
Tietoa Compute Nordic Finlandista
Compute Nordic Finland kehittää ja operoi suurtiheyksisten tekoälydatakeskusten infrastruktuuria Suomessa. Yhtiö toteuttaa pitkäaikaisia teollisia investointeja yhteistyössä paikallisten yhteisöjen, energiantoimittajien ja teknologiaosaajien kanssa. Compute Nordic johtaa Mikkelin tekoälydatakeskuksessa projektikehitystä, operaattorivastuuta ja hankkeen yleistä hallintaa.
Cerebrasin ilmoitukset
Cerebras julkaisee olennaisia ei-julkisia tietoja ja Yhdysvaltain Regulation FD -säädöksen edellyttämiä tietoja blogissaan (cerebras.ai/blog), sijoittajasuhteiden sivulla (investors.cerebras.ai), X-tilillään (@cerebras) ja LinkedIn-sivullaan (linkedin.com/company/cerebras-systems/). Sijoittajien tulisi tämän vuoksi seurata näitä kanavia sekä Cerebrasin tiedotteita, Securities and Exchange Commissionin (SEC) ilmoituksia sekä julkisia konferenssipuheluita ja verkkolähetyksiä.
Tulevaisuutta koskevat lausumat
Tässä lehdistötiedotteessa on "tulevaisuutta koskevia lausumia" sovellettavien arvopaperilakien tarkoittamassa merkityksessä. Muut kuin historiallisia tosiasioita koskevat lausumat voidaan katsoa tulevaisuutta koskeviksi, mukaan lukien mutta rajoittamatta lausumat kumppanuudesta Compute Nordicin kanssa, odotukset sopimukseen perustuvasta kapasiteetista ja kyvystä toimittaa tekoälylaskentaa, vaikutus tekoälyinfrastruktuurialaan ja sen kehityssuuntaan, pitkän aikavälin taloudellinen vaikutus Suomessa, mukaan lukien vaikutus työllisyyteen, investointien laajuuteen ja verotuloihin, odotukset operatiivisesta tehokkuudesta ja ympäristövastuullisuudesta, mukaan lukien hukkalämmön hyödyntäminen ja suljetun kierron jäähdytys, sekä edellä kuvattuihin liittyvät oletukset. Ilmaisut "saattaa", "tulee", "voi", "pitäisi", "odottaa", "suunnittelee", "arvioi", "voisi", "aikoo", "pyrkimys", "tähtää", "pohtii", "uskoo", "arvioi", "ennustaa", "mahdollinen", "tavoite" tai "jatkaa" tai niiden kielteiset muodot tai muut vastaavat termit tai ilmaisut, jotka liittyvät odotuksiimme, strategiaamme, suunnitelmiimme tai aikomuksiimme, on tarkoitettu tulevaisuutta koskevien lausumien tunnisteiksi, joskaan kaikissa tulevaisuutta koskevissa lausumissa ei käytetä näitä tunnisteita. Näihin tulevaisuutta koskeviin lausumiin liittyy monia riskejä ja epävarmuuksia, joiden tekijöihin ja olosuhteisiin Cerebras ei voi vaikuttaa. Näihin riskeihin ja epävarmuustekijöihin kuuluvat muun muassa seuraavat: Cerebrasin kyky ylläpitää ja hallita kasvuaan, saada lainaa ja muuta pääomaa hyväksyttävin ehdoin sekä hyödyntää käytettävissä olevaa pääomaa kasvun tukemiseen; Cerebrasin nettotappioita koskeva historia sekä kyky saavuttaa ja säilyttää kannattavuus; Cerebrasin rajallinen toimintahistoria nykyisessä mittakaavassa sekä kyky ennustaa liikevaihtoa tarkasti ja budjetoida ja hallita kuluja asianmukaisesti; Cerebrasin riippuvuus rajallisesta määrästä merkittäviä asiakkaita, joita ovat esimerkiksi OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence ja AWS, sekä mahdollinen vaikutus, joka aiheutuisi kysynnän vähenemisestä näiltä asiakkailta, olennaisesta haitallisesta kehityksestä suhteissa heihin tai kyvyttömyydestä täyttää näitä asiakkaita kohtaan olevia velvoitteita, mukaan lukien OpenAI:n kanssa tehdyn Master Relationship Agreement -sopimuksen mukaiset velvoitteet; Cerebrasin strategisten asiakas-, kumppani- ja rahoitusjärjestelyjen ajoitus, toteutus ja odotetut hyödyt; Cerebrasin aiempi riippuvuus laitteistojärjestelmien myynnistä sekä pilvipohjaisten palvelujen ja tekoälyinfrastruktuurin varhaisvaiheen, nopeasti kehittyvistä markkinoista; Cerebrasin kyky hankkia riittävästi datakeskuskapasiteettia ja pääomaa pilvipohjaisten tuotteiden tukemiseksi; Cerebrasin kyky lanseerata uusia tuotteita ja lisätä uusia tuoteominaisuuksia; sekä Cerebrasin kyky kilpailla tehokkaasti nopeasti kehittyvillä ja kilpailluilla AI-laskentaratkaisujen markkinoilla.
Cerebrasin toteutuneet tulokset voivat useiden tekijöiden vuoksi poiketa olennaisesti tuloksista, joihin tulevaisuutta koskevissa lausumissa viitataan tai joita niissä esitetään. Näin ollen tällaisiin lausumiin ei tulisi luottaa liiaksi. Nämä tulevaisuutta koskevat lausumat on laadittu sinä päivänä, jona ne alun perin annettiin, ja ne perustuvat Cerebrasin käytettävissä olleisiin tietoihin sekä Cerebrasin tuona päivänä tekemiin odotuksiin, arvioihin, ennusteisiin, ennakointeihin, käsityksiin ja oletuksiin. Näitä tulevaisuutta koskevia lausumia ei pidä pitää Cerebrasin näkemyksinä minään tämän tiedotteen päivämäärää myöhempänä ajankohtana. Aiemmat tulokset eivät välttämättä osoita tulevaa kehitystä. Cerebrasilla ei ole aikomusta eikä velvollisuutta päivittää tai tarkistaa mitään tulevaisuutta koskevia lausumia uuden tiedon, tulevien tapahtumien tai muiden syiden vuoksi, ellei laki sitä edellytä.
Lisätietoja todellisiin tuloksiin mahdollisesti vaikuttavista riskeistä on Cerebrasin uusimmissa SEC:lle toimitetuissa asiakirjoissa, esimerkiksi Cerebrasin viimeisimmässä neljännesvuosiraportissa lomakkeella 10-Q. Näiden asiakirjojen kopiot voi saada Cerebrasin sijoittajasuhdesivustolta osoitteesta investors.cerebras.ai tai SEC:n verkkosivustolta www.sec.gov.
Formerly CleanCore Solutions, Inc., Zone Frontier reflects the Company's strategic evolution and focus on developing, powering, and delivering next-generation AI data center campuses
, /PRNewswire/ -- Zone Frontier Inc. (NYSE American: ZONE) (the "Company" or "Zone Frontier"), formerly CleanCore Solutions, Inc., today announced the completion of its corporate name change to Zone Frontier Inc., marking a new chapter for the Company as it advances its strategy to build the critical infrastructure powering the AI economy.
The Company's common stock continues to trade on the NYSE American under the ticker symbol "ZONE." The name change does not affect the rights of the Company's stockholders and CUSIP number remains unchanged. No action is required by existing stockholders, and all outstanding stock certificates and book-entry positions remain valid.
"Zone Frontier represents the company we are building and the opportunity ahead of us," said Tyler Hassen, Chief Executive Officer of Zone Frontier. "As AI continues to reshape the global economy, the availability of land, power and infrastructure is becoming increasingly important. Zone is focused on developing the data center campuses and infrastructure needed to help meet this demand."
The Company has an active and growing pipeline of AI infrastructure projects to support the rapidly increasing demand for compute power. Zone's portfolio includes its Minnesota data center campus, with an initial 10-year Colocation Services Agreement with Cerebras Systems, Inc. (NASDAQ: CBRS) and two 10-year potential extension options. Additionally, in partnership with HST Technologies, Inc., Zone is developing a data center campus in West Texas with the potential to be larger than 500 MW. The Company is also actively evaluating additional development opportunities across rural and industrial areas of the United States.
For more information, visit www.zonefrontier.com.
About Zone Frontier Inc.
Zone Frontier Inc. (NYSE AMERICAN: ZONE) is helping to build the critical infrastructure that powers the AI economy. Through a growing pipeline of projects, the Company aims to help meet the increasing demand for compute capacity, power, and digital infrastructure required by the world's leading AI companies.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements regarding the Company's expected continued listing and trading of its common stock on the NYSE American under the symbol "ZONE," the Company's business strategy and pipeline of projects, and the Company's expected transition to an AI infrastructure business. Forward-looking statements are generally identified by words such as "anticipates," "believes," "expects," "intends," "plans," "may," "will," "could," "should," "estimates," "projects," "potential," "focused on," "aims," "expand," "expected," "look forward," and similar expressions. These forward-looking statements are based on management's current expectations and assumptions as of the date of this press release and are subject to significant risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, but are not limited to: the risk that the Company's new name or trading symbol is not processed or recognized by the NYSE American, the Financial Industry Regulatory Authority, or other market participants on the anticipated timeline; the highly speculative and uncertain nature of the Company's AI critical infrastructure business; the Company's continued ability to successfully transition its business model from cleaning services; the Company's lack of operating history in the data center or computing infrastructure industry; the Company's limited experience in the data center and AI infrastructure industries; the Company's ability to obtain project-level debt financing on acceptable terms or at all; the status of the Company's operations, results of operations, growth strategy and liquidity; and general economic, financial, capital market and industry conditions.
For a more complete discussion of risks and uncertainties, please refer to the Company's filings with the SEC, including the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. All forward-looking statements are qualified in their entirety by this cautionary statement.
Facility backed by seven-year contracted capacity agreement and estimated €1.0–1.7 billion in regional investment for local development and employment | Source: Cerebras Systems Inc.
MIKKELI, Finland, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems (NASDAQ: CBRS) today announced a new AI data centre in Mikkeli, Finland, developed in partnership with Compute Nordic Finland. The facility will scale in phases to 165 MW of contracted IT capacity to deliver high-density AI compute with construction on the initial 50 MW phase already under way.
The agreement, formalized through a series of service orders each with seven-year contract terms, gives Cerebras long-term, purpose-built infrastructure to support growing global demand for its AI compute platform, while providing the Mikkeli region a long-term industrial anchor with significant estimated revenue and sustained job opportunities.
“This partnership with Cerebras is not a speculative bet on future demand — it's a contractually committed, phased build-out that reflects exactly how much AI compute the market needs today and where that need is heading,” said Pyry Virrantaus, CEO of Compute Nordic Finland. “We are proud to build that capacity in Mikkeli, alongside a partner network of local and national organizations who are ready to deliver the project and build the workforce it requires.”
More AI Per Megawatt
Cerebras and Compute Nordic designed the Mikkeli facility for efficiency from day one to optimize power and water usage. The facility is designed to use closed-loop cooling systems that recirculate water rather than draw continuously from municipal supply, and the campus is designed to support waste-heat recovery, enabling thermal energy generated by AI compute into a resource for the surrounding community.
“Our architecture is built to get more useful AI output out of every megawatt we deploy,” said Andrew Feldman, CEO and co-founder, Cerebras. “Mikkeli lets us pair that efficiency with a data centre designed for closed-loop cooling and heat reuse from the ground up.”
A Long-Term Industrial Anchor for South Savo
Cerebras' long-term commitment in Mikkeli reflects the company's broader approach to data centre development: building long-term technical capability and high-quality, permanent jobs around advanced AI infrastructure, rather than treating a site as a temporary construction project. As demand for Cerebras' wafer-scale AI compute continues to grow globally, Mikkeli adds a purpose-built, efficiency-first facility to the company's infrastructure footprint, with capacity scaling from 50 MW to 80 MW to a full 165 MW as data centre capacity is delivered.
Independent analysis from Ramboll's Finnish Data Center Market Study and Impact Assessment Report (12 September 2025) estimates that, at full 165 MW scale, the project represents an indicative investment of €1.0–1.7 billion for the region, supporting an estimated 80–250 direct permanent jobs and €0.8–2.5 million per year in property tax revenue.
Unlike the construction-heavy, short-lived employment sometimes associated with large data centre projects, Cerebras and Compute Nordic are emphasizing the permanent, technical roles the Mikkeli campus will create and sustain over the life of the facility — including operations, power and cooling engineering, networking, security, and facilities management — alongside the near-term construction and local supply chain activity already under way.
“The clearest measure of a project like this isn't the number of construction jobs it creates upfront; it's what remains ten or twenty years later,” Virrantaus said. “We looked at permanent employment, workforce pathways, local suppliers, and durable economic activity when building this out in Mikkeli.”
A Broad Partner Network
The Mikkeli project is developed in close cooperation with the City of Mikkeli and key regional stakeholders across South Savo, supported by a broad network of Finnish construction, engineering, energy, recruitment, and professional services partners.
Compute Nordic Finland is leading project development, operator responsibility, the customer interface, and overall programme governance.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
About Compute Nordic Finland
Compute Nordic Finland develops and operates high-density AI data centre infrastructure in Finland, partnering with local communities, energy providers, and technology talent to deliver long-term industrial investment. Compute Nordic leads project development, operator responsibility, and programme governance for the Mikkeli AI Data Centre.
Cerebras Disclosure Information
Cerebras uses its blog (cerebras.ai/blog), investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements about the partnership with Compute Nordic; expectations regarding contracted capacity and ability to deliver AI compute; impact on and direction of the AI infrastructure industry; long-term economic impact in Finland, including impact on employment, investment scale, and tax revenue; expectations regarding operational efficiency and environmental responsibility, including heat-reuse and closed-loop cooling; and any assumptions relating to the foregoing. The words "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "objective," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Cerebras’ control. These risks and uncertainties include, but are not limited to: Cerebras’ ability to sustain and manage its growth, access borrowings and other sources of capital on acceptable terms, and deploy available capital to support growth; its history of net losses and ability to achieve and maintain profitability; its limited operating history at its current scale and ability to accurately forecast revenue and appropriately budget and manage expenses; its dependence on a limited number of significant customers, including OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence, and AWS, and the potential impact of any reduction in demand from, material adverse development in its relationships with, or failure to meet its obligations to, such customers, including under its Master Relationship Agreement with OpenAI; the timing, execution and expected benefits of its strategic customer, partner and financing arrangements; its historical reliance on sales of hardware systems and the early-stage, rapidly evolving market for its cloud-based offerings and AI infrastructure; its ability to secure sufficient data center capacity and capital to support its cloud-based offerings; its ability to launch new offerings and add new product capabilities; and its ability to compete effectively in the rapidly evolving and competitive market for AI computing solutions.
Cerebras’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Accordingly, undue reliance should not be placed on such statements. These forward-looking statements are made as of the date they were first issued and are based on information available to Cerebras together with Cerebras’ expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the SEC, including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.
Cerebras stock collapsed 40% from its May peak on a single bad earnings report, yet Wall Street analysts refuse to cut their targets. Here is why the gap between price and conviction keeps growing.
Cerebras Systems (NASDAQ:CBRS) currently trades near $185.43, while the average Wall Street price target sits at $291.64. That gap implies roughly 57% of upside to consensus.
Cerebras builds wafer-scale AI systems that sidestep the memory and packaging bottlenecks throttling standard GPU clusters. Its wafer-scale engine architecture avoids HBM memory, CoWoS packaging, and 3nm fabrication, and its customer roster runs through OpenAI, AWS, AMD, and CrowdStrike.
Wall Street expected explosive inference demand post-IPO. Instead, the stock has become one of the choppiest names in AI infrastructure, and that dislocation gives the price-to-target gap real teeth.
An IPO Darling Now Sitting Near Its Debut Price Shares fell 26.41% in a single week after Q2 2026 results missed expectations. Revenue of $180.11 million fell short of the analyst estimate of $193.55 million, and GAAP EPS of -2.98 came in far below the consensus loss of -0.1801.
The bigger issue was margin guidance. Management guided Q3 core operating margin to negative 25% to negative 23%, down from negative 16% in Q2. On a widely read Reddit thread, traders summed up the reaction as “Cerebras falls 10% after chipmaker forecasts shrinking margin in first earnings report since IPO.”
Shares are now down 40.39% from a May high of $311.07. The move was company-specific. Semiconductors broadly held up over the same window.
UBS Sees 78% Upside From a $330 Street-High Target Even with shares tumbling, analysts have barely blinked. UBS analyst Timothy Arcuri holds a $330 Street-high 12-month target, implying roughly 78% upside from current levels. His thesis rests on three pillars: the pending launch of Cerebras’s CS-4 wafer-scale platform with orders-of-magnitude higher SRAM memory bandwidth than GPU clusters, hyper-growth revenue anchored by enterprise and hyperscale backlog, and gross margin scaling into the 40%+ range as yields mature.
The backlog case is real. Remaining performance obligations sit at $25.4 billion, anchored by a multi-year OpenAI agreement for 750 megawatts of inference compute valued at more than $20 billion. Management raised full-year 2026 core revenue guidance to $880 to $890 million and plans to more than triple revenue in 2027.
CEO Andrew Feldman stated: “Fast tokens are in demand and command a premium at market.” He also flagged a disaggregated inference solution with AMD (NASDAQ:AMD | AMD Price Prediction) Helios deploying in Q4 and an AWS Bedrock rollout scheduled for Q1 2027, both viewed as catalysts for second-half re-rating.
Of the 11 analysts covering CBRS, 3 rate it Strong Buy, 7 Buy, and 1 Hold, with no Sells. Recent revisions have been reiterations rather than cuts.
How Cerebras Stacks Up Against NVIDIA and AMD Cerebras fell alone. NVIDIA (NASDAQ:NVDA) and AMD, its two closest listed AI-compute peers, pulled back over the same stretch but nowhere near as violently.
NVIDIA sits at $208.48, down 7.35% on the week. Its consensus target of $304.73 implies about 46% upside, with analyst posture skewed heavily to Buys and revisions trending up on Blackwell demand.
AMD trades at $456.75 after slipping 9.73% last week. Its consensus target of $613.09 implies roughly 34% upside, backed by a Buy-heavy rating mix and recent target raises tied to the Instinct MI450 ramp.
The largest analyst-implied upside across the group sits with Cerebras. That says the Street thinks the selloff was overdone. It also says Cerebras carries the highest execution risk in the trio.
Where the Numbers Land Cerebras currently trades at $185.43 against a consensus target of $291.64, with 11 covering analysts and 91% bullish sentiment. Analyst targets are not guarantees, but the skew here is unusually one-sided.
Recent performance shows the pain. CBRS is down 26.41% over the past week and 40.39% from its May peak. The S&P 500 is up 11.96% year to date and down just 1.19% on the week. That is idiosyncratic weakness on a scale the broader market simply is not showing.
Analyst ratings breakdown:
Strong Buy: 3 Buy: 7 Hold: 1 Sell: 0 Where I Come Down on Cerebras Here The bull case rests on the CS-4 launch landing cleanly, the AWS Bedrock and AMD Helios integrations shipping on schedule, and management executing on tripling revenue in 2027. Q3 is guided as the low point for gross margins. If Q4 inflects as expected, the second-half re-rating alone gets the stock most of the way to consensus.
The bear case centers on the $377 million in stock-based compensation and concentration around OpenAI make the earnings picture uninvestable at this stage. If capacity ramp slips or a major customer renegotiates, the $291 target compresses fast.
I lean cautiously constructive. The $25.4 billion RPO figure and the AWS-AMD-OpenAI trifecta are too large to dismiss, and the risk/reward at $185 tilts toward the upside case. Size small and stomach volatility. This is not a table-pounder. (For readers hunting for the traits that showed up in early-stage AI compute winners before their runs, we cataloged them in a free playbook here.)
Contact [email protected] for any questions or corrections.
NVIDIA prints $81 billion quarters while Cerebras barely cleared its IPO, yet one metric puts the underdog in a position the AI giant cannot easily dismiss. The strategic clash between wafer-scale inference and full-stack AI factories raises a real question…
Cerebras Systems (NASDAQ: CBRS) and NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) delivered post-earnings reports showing two distinct AI compute visions. NVIDIA reported a $81.61 billion quarter powered by full-stack AI factories. Cerebras, fresh off its IPO, bets on wafer-scale inference speed. The results make a direct comparison unusually relevant.
Wafer Scale Meets AI Factory Scale NVIDIA’s Q1 FY27 earnings were dominated by Data Center revenue of $75.246 billion, up 92% year over year, with networking growing 199%. Jensen Huang stated “Demand has gone parabolic.” Blackwell Ultra swept every MLPerf inference benchmark, and Vera Rubin production begins in the second half of fiscal 2027.
Cerebras took a different route. Core revenue reached $209.87 million, up 103%, though GAAP revenue of $180.11 million came in 6.95% shy of consensus. CEO Andrew Feldman said “our cloud business nearly quadrupled year-over-year”, driven by fast inference demand from OpenAI, AWS, AMD, and CrowdStrike. Backlog sits at $25.4 billion in remaining performance obligations.
Platform Empire Versus Speed Specialist The strategic split is clear. NVIDIA sells a vertically integrated stack: CUDA, NVLink, Spectrum-X, DGX, and Vera Rubin, aimed at every hyperscaler and sovereign buildout. Huang emphasized that “AI native clouds don’t build chips, don’t design their own chips”, positioning NVIDIA as the ready-made AI factory. Cerebras leverages single-chip scale that sidesteps HBM memory, CoWoS packaging, and 3nm constraints, wrapped in a cloud inference service.
Lens NVIDIA Cerebras Core Bet Full-stack AI factories Fastest single-user inference Gross Margin 75.0% non-GAAP 40.6% core Anchor Customer Every hyperscaler OpenAI 750MW deal Key Vulnerability China revenue at zero Customer concentration NVIDIA counters Cerebras with TensorRT-LLM, speculative decoding, multi-user concurrency scaling, and ubiquitous cloud availability. Cerebras wins on raw tokens per second for a single user. Different buyers, overlapping budgets.
Vera Rubin Ramp Versus Cerebras Scaling The next tests are concrete. NVIDIA guided Q2 FY27 revenue to $91.0 billion, plus or minus 2%, excluding China Data Center compute. Vera Rubin promises up to 35x higher inference throughput versus Blackwell. Watch whether hyperscalers accept that leap without hesitation.
Cerebras raised full-year 2026 core revenue guidance to $880 to $890 million and plans to triple revenue in 2027. Monitor whether manufacturing capacity, scaling more than 10x in 2026, actually delivers.
Why NVIDIA Remains the Anchor, With Room for Cerebras NVIDIA remains the sturdier position. A 32x trailing P/E on 17.28% one-year gains, paired with $48.554 billion in quarterly free cash flow, reflects a business printing money while buildout is early. Cerebras appeals as a smaller, higher-variance position for investors believing inference speed commands a premium. GAAP losses tied to $377.0 million in stock-based compensation and customer concentration warrant caution. If Vera Rubin ships on time and Cerebras hits 2027 guidance, both can work. Until then, NVIDIA is the anchor and Cerebras is the swing.
Contact [email protected] for any questions or corrections.
Cerebras targets dominance in AI inference with its CS-4 chip and unique wafer-scale architecture, aiming to capture latency-sensitive workloads. Gross margin expansion, data center buildout, and core operating margin improvement are essential for CBRS to achieve GAAP profitability and justify its premium valuation. Major risks include Nvidia's entrenched ecosystem, manufacturing yield challenges, and limited competitiveness in applications requiring large KV caches.
Ark bought $17.2 million of Cerebras shares. Summary
Wood sold about $3.5 million of AMD stock.
Cathie Wood is backing Cerebras Systems (CBRS, Financials) with a greater vote of confidence. Ark Invest bought 93,290 shares of Cerebras, a purchase valued around $17.2 million. The move adds to recent buys by Wood in the AI chip business.
Ark also sold 7,600 shares of Advanced Micro Devices valued at almost $3.5 million. That difference makes the trade interesting.
Cerebras is currently a far smaller player than AMD or Nvidia, but it's seeking to carve out a niche in AI inference with devices built to run models quicker and more efficiently.
The company recently announced its CS-4 system, which it said will provide more than 4,400 tokens every second per user. Analysts have also indicated Meta could come in as a further customer later this year.
Wall Street is generally bullish. Cerebras has a Strong Buy consensus rating and its average price target is $296, suggesting ~61% upside from recent levels.
The risk is obvious: Cerebras shares continue to be substantially lower since the company's IPO in May. But her new action indicates she sees that weakness as an opportunity, not a warning.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Cerebras Systems (CBRS -4.07%) and Space Exploration Technologies (SPCX +0.45%), known as SpaceX, are two prominent companies that went public in 2026. Cerebras started trading on May 14, while SpaceX followed on June 12.
Cerebras builds wafer-scale artificial intelligence (AI) systems (computers built around a single large processor) and sells access to its computing power through the cloud. SpaceX operates reusable rockets, the Starlink satellite network, and an AI segment that includes the Grok large language model and AI computing infrastructure.
Image source: Getty Images.
Cerebras is much smaller than SpaceX in terms of market capitalization. However, its cloud revenue is growing rapidly at a time when more AI spending is shifting from training models toward inference or running them in production.
SpaceX has already generated nearly $2.6 billion in revenue from the AI business in the second quarter of fiscal 2026 (ending June 30). But it also has its profitable Starlink-driven Connectivity business to help fund that expansion.
Hence, the key question is whether Cerebras' faster growth potential can outweigh SpaceX's greater financial strength over the next five years.
Cerebras could benefit more as AI spending shifts to inference Gartner expects global spending on AI inference to reach $23.3 billion in 2026, overtaking the $19 billion spent on training. Inference is expected to account for 59% of AI-optimized cloud infrastructure spending by 2027.
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Cerebras is already benefiting from this trend. The company's non-GAAP (generally accepted accounting principles) cloud and services revenue jumped 287% year over year to $127.7 million in the second quarter (ending June 30). Total non-GAAP revenue (core revenue) was up 103.3% year over year to $209.9 million, ahead of management's non-GAAP revenue guidance of around $194 million.The company also raised full-year core revenue guidance to $880 million to $890 million, up from the previous outlook of $855 million to $865 million.
However, Cerebras is exposed to customer concentration risk. Three customers accounted for about 76% of the company's second-quarter revenue. Additionally, while Cerebras had $25.4 billion in remaining performance obligations (RPO) at the end of the second quarter, only 22% is expected to be recognized as revenue over the two years ending June 2028.
SpaceX can fund its AI expansion more easily SpaceX's Connectivity segment generated around $4.3 billion of revenue and roughly $1.7 billion of operating income in the second quarter (ending June 30). This profitable business provides SpaceX with an important source of revenue to support its AI expansion.
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However, the AI segment posted an operating loss of around $1.3 billion while consuming $15.8 billion of capital expenditures during the quarter. Management expects SpaceX to reach a $100 billion annualized revenue run rate by December 2026, but achieving that target will require enormous investment.
Which is the better AI-powered pick? Cerebras is currently trading at around 14.9 times analysts' expected 2027 revenue of $2.95 billion. SpaceX is even more expensive at roughly 17.4 times analysts' expected 2027 revenue of $105.47 billion (as of Aug. 24).
While SpaceX clearly has the stronger financial base, the company's AI expansion is already extremely capital-intensive. Cerebras appears to offer the better five-year risk-reward balance. The risk is much higher, particularly because of customer concentration and the long timeline for converting its RPO into revenue. But if Cerebras can scale capacity while improving margins, its growth could justify that risk.
Cathie Wood is making the most of the market's volatility. The founder, CEO, and chief investment officer at Ark Invest publishes her transactions daily, and she has been adding to some of her active positions lately. All three stocks have delivered double-digit percentage declines since hitting all-time highs in recent months.
Broadcom (AVGO -0.74%) was Ark's largest purchase for its three largest ETFs. Wood also added to her Cerebras Systems (CBRS -4.07%) and Cloudflare (NET -2.72%) stakes on Wednesday. Let's take a closer look at what she may find so appealing despite their recent pullbacks.
Ark Investment Management CEO Cathie Wood. Image source: Getty Images.
1. Broadcom Broadcom stock has cooled down since peaking in early June. The provider of semiconductor and tech infrastructure solutions has risen a mere 2.7% in 2026, less than a quarter of the market's return. That might not seem so bad, but the stock is now down 28% from the all-time high it reached less than three months ago.
Revenue is accelerating, a good look in any scenario. With its AI business becoming a bigger part of the revenue mix, the trend for top-line gains over the last few quarters is encouraging.
The big jump in its latest quarter is significant. It's Broadcom's second-largest year-over-year increase in the last nine years. You know what's even better? Its outlook at the time was calling for an 84% burst in revenue growth for its fiscal third quarter.
You won't have to wait long for that to happen. Broadcom reports next week, after Wednesday's market close. Despite the stock's pullback since last quarter's "beat and raise" performance, expectations have heightened. Analysts are calling for an 85% jump in revenue. They also see earnings per share catapulting 92% for the quarter.
Accelerating growth can lead to some impressive before-and-after snapshots. Broadcom is trading at a stiff 60 times trailing earnings, but reasonably cheap at 18 times next fiscal year's analyst target.
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2. Cerebras Systems Unlike Broadcom, which has been publicly traded for more than 28 years, Cebebras went public just three months ago. Hitting the market in May -- when the AI play was in full bloom -- has its advantages. Cerebras is ushering in a potential breakthrough in AI chip architecture: a large GPU with a continuous sheet of silicon, rather than wiring hundreds of chips together.
Cerebras went public at $185, opened at $350 on its first day on the market, and notched an intraday high of $386. It has fallen 53% since then, technically a broken IPO as of Wednesday's close. A rough first quarter as a public company back in June didn't help, but could it just have been a natural reaction following its helium-filled debut? Revenue nearly doubled, soaring 94% in its first quarter as a public company. However, thin margins and heavy customer concentration with two UAE clients accounting for almost three-quarters of its revenue were sobering.
Revenue growth slowed to 74% in the second quarter, but it's not fair to say that business is fading. Core revenue more than doubled, and its cloud business almost quadrupled. It closed out the period with $25.4 billion in remaining performance obligations, impressive for a company with less than $700 million in trailing revenue.
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3. Cloudflare Compared to Broadcom and Cerebras, Cloudflare's 14% drop from its all-time high seems tame. However, that peak took place just two weeks ago. The pullback has been swift.
Cybersecurity stocks were rocked earlier this year on AI disruption concerns, but this is one segment of enterprise software built to last. Companies need to protect the data they collect, and that means a proven track record and responsive support. Cloudflare blocks more than 300 billion cyber threats daily.
Cloudflare's 36% revenue growth in its latest quarter is the weakest among the three stocks in this list. It's still Cloudflare's strongest top-line move in three years, and it's piecing together back-to-back years of accelerating growth. Wood naturally believes that Cloudflare will move higher from here, something that can be said for all three stocks.
Key Takeaways Cerebras signed six deals worth more than $30 million each in the second quarter of 2026.Cerebras expects manufacturing capacity to increase more than 10-fold in 2026.Cerebras ended Q2 with $8.6 billion in cash, restricted cash and short-term investments. Cerebras Systems (CBRS - Free Report) is expanding its international footprint as demand for high-speed Artificial Intelligence (AI) inference rises across enterprises, hyperscalers and sovereign AI initiatives. The company has data centers operational or under contract outside the United States in France, Finland and Norway, as well as Manitoba, Montreal, Saskatchewan and Toronto in Canada. This distributed infrastructure should bring compute closer to customers, broaden Cerebras’ addressable market and strengthen its ability to compete with NVIDIA (NVDA - Free Report) and Microsoft (MSFT - Free Report) in the global AI infrastructure market.
Cerebras has secured more than 600 megawatts of data-center capacity that is either live or contracted for delivery by the end of 2027, while its pipeline of additional opportunities is measured in gigawatts. Its inference-focused architecture provides flexibility in selecting sites because it does not require the gigawatt-scale locations typically associated with large training clusters. Cerebras has expanded manufacturing capacity and expects it to increase more than 10-fold in 2026, supporting the infrastructure required for further geographic growth.
International markets are already making a meaningful contribution to Cerebras’ business. UAE-based Mohamed bin Zayed University of Artificial Intelligence accounted for 34% of revenues in the second quarter of 2026 and 49% in the first half of 2026, while G42 contributed 9% and 10%, respectively. The company’s customer base also includes sovereign AI initiatives, reinforcing the opportunity to serve governments and organizations that require greater control over infrastructure and data. Cerebras supports such customers through on-premises systems, Cerebras Cloud and partner-cloud offerings.
Europe is becoming an important component of the expansion. Cerebras said its agreement with AI coding company Lovable extended its European presence, complementing new agreements with Figma and Cognition. Cerebras signed six deals worth more than $30 million each during the second quarter of 2026. The company’s collaboration with Amazon Web Services ("AWS") could broaden its international reach, with Cerebras-powered inference expected to become generally available through Amazon Bedrock in the first quarter of 2027.
CBRS management said the AWS relationship provides global reach, while discussions with other hyperscalers could begin generating revenues in mid-2027 and ramp through 2028. Notably, the roughly $25 billion of remaining performance obligations (RPO) do not include backlog from AWS or other hyperscalers.
CBRS Faces Tough CompetitionMicrosoft is challenging Cerebras through Azure’s massive global infrastructure footprint. MSFT added 31 data centers across five continents in its fourth quarter of fiscal 2026 and 88 during fiscal 2026, while adding another gigawatt of capacity. Microsoft remains on track to roughly double overall capacity in two years. Its Sovereign Cloud initiatives, including support for Mistral models across public, customer-controlled and fully disconnected environments, strengthen its appeal to international enterprises with data-sovereignty requirements.
NVIDIA presents an equally significant challenge. Its ACIE business, which includes NeoCloud, industrial and enterprise customers and has significant sovereign AI exposure, generated $40 billion in revenues in the second quarter of fiscal 2027, up 25% sequentially and 138% year over year. Growth was driven by NeoCloud capacity additions to meet rising demand from enterprises, AI startups and sovereign customers. NVIDIA expects its NeoCloud partners to exit 2026 with eight gigawatts of installed capacity, up from roughly three gigawatts at the end of 2025. NVIDIA’s sovereign AI business grew 35% sequentially and more than tripled year over year, while a record 35 new NVIDIA-powered AI supercomputers were unveiled in Europe. This expanding global ecosystem could make international share gains more difficult for Cerebras.
CBRS’ Share Price Performance, Valuation & EstimatesShares of Cerebras have lost 40% over the past three months, underperforming the broader Zacks Business Services sector’s 7.5% decline.
CBRS Stock’s Price Performance
Image Source: Zacks Investment Research
Cerebras currently has a Value Score of F, reflecting outstretched valuation.
Moreover, Wall Street’s consensus price target implies roughly 54.71% upside from current levels.
Price Target chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cerebras’ loss is currently pegged at 13 cents per share, an improvement from a loss of 32 cents per share over the past 30 days.
Cerebras currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SUNNYVALE, Calif. and LONDON, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Cerebras (NASDAQ: CBRS) and Callosum are partnering to bring next-generation inference to market, delivering industry-leading AI compute at scale. By working with Callosum, a frontier AI and compute software company headquartered in London, Cerebras continues to expand its European presence, on the heels of last month’s announcement that it is delivering 200 MW of European AI compute data center capacity.
Agentic inference workloads are becoming increasingly heterogeneous, with multi-agent systems operating over long-horizons in open-ended, dynamic environments. At each stage, distinct agentic reasoning and action requirements demand different computational requirements, driving the need for heterogeneous infrastructure.
The Cerebras and Callosum partnership addresses this challenge by integrating Cerebras’ silicon into the Callosum software platform. Callosum’s software decomposes and orchestrates heterogeneous agentic workloads, extracting maximum new levels of performance from new models and next-generation silicon. Cerebras' Wafer-Scale Engine delivers the ultra-low-latency inference that makes new categories of agentic AI possible. This collaboration gives customers direct and optimized access to frontier performance, unlocking new territories for Cerebras’ silicon to be utilized where it matters most.
"Agentic AI demands infrastructure that can keep up with the speed of reasoning, not just the size of the model,” said Andy Hock, Chief Strategy Officer, Cerebras. “By integrating Cerebras into Callosum's platform, we're making ultra-low-latency inference available exactly where it creates the greatest impact, enabling customers to build AI systems that simply weren't practical before. This strategic partnership amplifies Cerebras' reach across Europe, equipping a massive community of innovators to achieve the impossible."
Compute infrastructure remains the key resource for scaling AI. This partnership brings frontier silicon to market through the integration layer built for the next era of AI scaling, reflecting a shared conviction on the next paradigms of scaling compute.
"The next-generation of AI will be defined by how intelligently compute is orchestrated, not simply how much compute is available,” said Danyal Akarca, CEO, Callosum. “Cerebras brings unmatched inference performance. Together we've made it easy for customers to harness that capability through the Callosum platform. This partnership gives organizations a faster path to deploying sophisticated agentic AI systems while expanding access to the world's leading AI infrastructure."
Cerebras capacity will be available through Callosum APIs.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
About Callosum
Callosum is the Intelligent Systems Company, building the infrastructure for the next-generation of AI. We believe intelligence will not be defined by any single model or chip, but by systems that bring together specialised models, workflows and hardware to solve each problem in the way that best fits its requirements.
Callosum builds the software layer that unifies heterogeneous compute across the full stack, co-evolving models, workflows and silicon to deliver intelligence tailored to each workload. Working directly with leading silicon and infrastructure partners, we make diverse compute usable at scale - unlocking new capabilities while improving cost, speed and efficiency, without reliance on any single provider.
We’re building with the teams tackling the world’s hardest problems - and with the compute companies developing the silicon that will power what comes next. More at callosum.com.
Cerebras Systems (NASDAQ:CBRS) outlined a product roadmap centered on faster AI inference, expanded data-center capacity and new partnerships with OpenAI, Arista Networks and Advanced Micro Devices during a company event led by CEO and Co-Founder Andrew Feldman.
Feldman said the company recently went public and is seeking to position its wafer-scale computing technology as an infrastructure platform for real-time AI applications. He argued that inference speed has become a product-level consideration rather than solely a technical benchmark, particularly as AI shifts toward interactive tools and autonomous agents.
“In AI, speed is productivity,” Feldman said, asserting that faster response times allow users to run more workloads and address more complex tasks without the traditional trade-off between model intelligence and latency. OpenAI Discusses Ultrafast Service Tier Feldman highlighted OpenAI’s recently announced GPT-5.6 Sol Ultrafast mode, which he said runs OpenAI’s most intelligent models at up to 14 times the speed of its standard offering for select customers. He said Cerebras hardware powers the service and presented a comparison based on Humanity’s Last Exam, a graduate-level reasoning benchmark.
According to Feldman, the Cerebras-powered system completed the full 2,500-question benchmark in 11 hours, 11 minutes and 26 seconds, while the comparison system required more than three days.
Thibault Sottiaux, a member of the technical staff at OpenAI, said the company’s strategy has been to build leading models and serve them at scale, with increasing focus on agents. He said ultrafast inference reduces the need to choose between a smaller, lower-latency model and a larger model that takes longer to respond.
Sottiaux said OpenAI would like Ultrafast to become the default experience over time, though he stressed that the company is still early in deploying it. He said OpenAI reserves some Ultrafast capacity for incidents, security matters, major internal projects and research efforts, while also allocating capacity for customers through its API.
He added that ChatGPT has surpassed 1 billion users, while the company’s more sophisticated agentic workflows remain used by a smaller but rapidly growing segment. Feldman said OpenAI has 15 million weekly users of Codex and ChatGPT agents, a figure Sottiaux referenced as recently published by OpenAI.
Data-Center Buildout and Infrastructure Partners Feldman said Cerebras has data centers operating or being developed across North America and Europe, naming locations including Santa Clara, Toronto, Dallas, Minneapolis, Montreal, Oklahoma City, Alabama, Lyon, France, Norway and Mikkeli, Finland. He said the company has brought on 600 megawatts of power that is online or under contract for delivery by the end of next year.
Jayshree Ullal, CEO of Arista, said AI infrastructure requires coordinated networking alongside compute capacity. She described the growing importance of networking across scale-up, scale-out and geographically distributed “scale-across” deployments.
Ullal said that AI workloads differ from traditional cloud traffic and require networks that can handle varying traffic patterns, model types and agent workloads. She also said bandwidth requirements could continue to increase rapidly, citing potential networking speeds of 3.2 terabits and 6.4 terabits in the coming years.
Feldman also discussed a disaggregated inference approach with Mark Papermaster, AMD’s executive vice president and chief technology officer. Under that approach, GPUs handle the “prefill” stage of inference, in which an AI model processes an input context, while Cerebras systems handle “decode,” the token-by-token generation phase.
Feldman said this combination could provide inference that is 10 times faster than GPUs and five times more throughput than Cerebras alone. Papermaster said the partnership combines GPU strengths in parallel computation with Cerebras’ low-latency decode capabilities.
CS-4 System Targets Higher Performance Sean Lie, Cerebras’ CTO and co-founder, introduced the company’s next-generation CS-4 system, which is in early access and is expected to be generally available later this quarter.
Lie said CS-4 is designed around the company’s Nexus rack-scale platform and includes three wafer-scale engines in a single system. He said the platform will offer up to twice the token-generation speed of the current CS-3 generation, six times higher system-level performance, three times more density per rack and up to 10 times more tokens per watt in certain solutions.
According to Lie, the system uses the company’s WSE-3 Turbo chip, with each wafer providing 43 petabytes per second of memory bandwidth. He said the architecture is intended to reduce bottlenecks associated with moving model weights across multiple chips and to support larger models through lower-latency wafer-to-wafer connections.
CS-4 is expected to provide up to 30 times faster token generation than GPU solutions, according to Cerebras. The system is designed with twice the I/O bandwidth per wafer and lower network latency than the prior generation. Cerebras said its modular rack architecture is intended to reduce components by 50% and shorten data-center deployment times from days to hours. Lie said the Nexus architecture is intended to support future CS-5 and CS-6 systems. Cerebras’ roadmap calls for doubling speed annually and delivering solutions with up to 20 times higher throughput by 2027.
Focus on AI Agents and Time-Sensitive Applications Jessica Liu, Cerebras’ senior vice president of product, said fast inference can improve the usefulness of AI agents by allowing more model calls, planning loops and tool use within the same time budget. She said slower systems can force users to choose smaller models or wait longer for more capable agents.
Speakers from Figma, Cognition and CrowdStrike described applications for faster model inference in design, software engineering and cybersecurity. Figma AI Research Product Lead Pavi Bhatter said the company’s Design Agent, currently in beta, uses Cerebras hardware as part of its effort to make design workflows more interactive. Cognition’s Silas Alberti said the company has deployed coding models on Cerebras and reported faster end-to-end task completion in certain use cases.
Keith Coley, CrowdStrike’s vice president of engineering, said cybersecurity decisions can be highly time-sensitive and described the company’s partnership with Cerebras as a way to allow more AI-based inspection within acceptable response windows.
About Cerebras Systems (NASDAQ:CBRS) Cerebras Systems is a technology company focused on building artificial intelligence infrastructure, including hardware and software designed to accelerate deep learning and large-scale AI workloads. The company is best known for its wafer-scale processor architecture, which is intended to provide high-performance compute for training and inference applications.
In addition to its AI chips, Cerebras offers systems and related software tools that support researchers and enterprises working with machine learning models.
The semiconductor sector is undergoing a fundamental shift. While the opening chapters of the artificial intelligence boom centered on heavy training clusters, enterprise spending is pivoting toward real-time inference. For generative applications and autonomous agents, how fast a system can process tokens often dictates product viability.
Cerebras Systems Today
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Cerebras Systems
$205.61 -14.40 (-6.55%)
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$160.81▼
$386.34$299.90
Cerebras Systems Inc. NASDAQ: CBRS sits at the center of this shift. By taking a distinct path away from legacy processor designs, Cerebras Systems has engineered a wafer-scale architecture that overcomes the physical memory constraints that cap traditional hardware.
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With expanding hyperscale partnerships, an insulated supply chain, and a multibillion-dollar backlog, Cerebras Systems presents a compelling case for investors watching the next wave of infrastructure buildouts.
Cracking the Latency Code With Single-Wafer SiliconEvaluating Cerebras Systems requires understanding how generative workloads actually run. Machine learning inference divides into two phases: prefill and decode. Prefilling ingests the initial prompt in parallel, a process in which traditional graphics chips excel. Decode generates output sequentially, creating tokens one word or character at a time.
During decode, traditional processors must repeatedly move data between compute cores and external memory banks. This physical bottleneck, known as the memory wall, severely restricts generation speed. When an autonomous software engineer or an automated cybersecurity system works through a multi-step problem, slow output can create lag that disrupts the user's workflow.
Cerebras Systems bypasses this challenge by building an entire processor across a single silicon wafer. By embedding 44 gigabytes of static random-access memory directly on the chip alongside hundreds of thousands of cores, data shuttling over external circuit boards is eliminated. The architecture delivers tokens at up to 14 times the speed of conventional setups, turning interactive AI into an instantaneous tool.
Divide and Conquer: Teaming Up to Speed UpRather than forcing enterprise customers into expensive rip-and-replace infrastructure cycles, Cerebras Systems embraces disaggregated inference. Under this model, standard accelerators handle input prefill, while wafer-scale hardware manages sequential decode. This division of labor delivers up to a 5x boost in overall data center throughput while preserving ultra-low latency.
Hyperscale Handshakes: Powering OpenAI at Blistering VelocityReal-world proof of this disaggregated approach is broadening through partnerships with top-tier companies:
AMD Alliance: Cerebras Systems has teamed with Advanced Micro Devices Inc. NASDAQ: AMD to link Helios rack platforms with Cerebras Systems hardware. Entering production around the fourth quarter of 2026, the joint setup allows existing GPU operators to multiply system throughput.
Amazon Bedrock Integration: A collaboration with Amazon.com Inc. NASDAQ: AMZN brings Cerebras Systems to Amazon Bedrock in the first quarter of 2027, enabling broad distribution across enterprise cloud environments.
OpenAI Production Tier: Cerebras Systems powers the Ultrafast mode for OpenAI's GPT-5.6 Sol model, clocking up to 750 tokens per second to deliver high-value performance for complex reasoning.
Enterprise adoption is spreading into latency-sensitive software environments. Cybersecurity platform CrowdStrike Holdings Inc. NASDAQ: CRWD uses the technology to run real-time threat analysis on active corporate networks, while digital payments leader Block Inc. NYSE: XYZ uses it to accelerate automated customer workflows.
Dodging the High Bandwidth Memory CrunchSupply chain exposure remains a structural risk for many semiconductor manufacturers. Industry demand for high-bandwidth memory and specialized 3D packaging continues to create packaging waitlists and margin volatility.
Cerebras Systems avoids these chokepoints through its unique manufacturing footprint. Relying on integrated on-chip memory rather than stacked memory modules reduces exposure to tight packaging channels. Silicon fabrication runs on proven, cost-effective 5-nanometer wafers from Taiwan Semiconductor Manufacturing Company NYSE: TSM, ensuring stable wafer deliveries at attractive component pricing.
Assembly capacity is expanding rapidly. Contract manufacturing lines with Flex Ltd. NASDAQ: FLEX, Sanmina Corp. NASDAQ: SANM, and Rocket EMS are scaling hardware output by more than 10x through 2026. On the facility side, Cerebras Systems has secured over 600 megawatts of data center capacity under contract through 2027. Immediate technology upgrades are underway, with the debut of the fourth-generation CS-4 system at the Supernova 2026 conference, projected to deliver a 20x increase in throughput over the next 18 months.
A Backlog of Billions Backs Up the HypeCerebras' recent results demonstrate that customer demand is translating into meaningful top-line expansion. Second-quarter core non-GAAP revenue roughly doubled year-over-year to approximately $209.9 million, driven by core cloud revenue surging 287% to about $127.7 million.
Although headline GAAP numbers reflected an accounting net loss of approximately $450.5 million, largely due to post-IPO stock-based compensation and non-cash customer warrant amortization, operational leverage improved markedly. Core gross margins expanded by roughly 940 basis points to about 40.6%, while core operating margin gained approximately 2,600 basis points compared to the prior year.
Management raised full-year core revenue expectations to a range of $880 million to $890 million, while projecting core revenue to more than triple in 2027. Providing long-term commercial visibility, Cerebras' remaining performance obligations stand near $25.4 billion. A balance sheet holding around $8.6 billion in cash, equivalents, and short-term investments, alongside an undrawn $850 million credit facility, provides significant runway to self-fund data center buildouts.
Shifting Into Overdrive: Why Patient Capital Is Eyeing CerebrasEvery major computing cycle transitions from early infrastructure buildout to real-time workload optimization. As businesses prioritize low latency, power efficiency, and per-token unit economics, computing architectures tailored specifically for high-speed inference stand to capture meaningful market share.
Investors should account for potential near-term gross margin fluctuations at Cerebras, as temporary system rentals to meet immediate cloud demand could keep third-quarter margins in the 38% to 40% range before owned hardware deployments take over.
However, with Wall Street price targets averaging around $299.90, representing roughly 35% upside from current prices near $221.71, investors with a growth-focused horizon may want to keep Cerebras Systems on their radar as an innovative pure-play in the inference buildout.
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After Cerebras Systems (NASDAQ: CBRS) reported its second-quarter results after the close on Aug. 12, its shares sank 16% over the following two trading sessions, although the stock bounced back after the investment advisor Wedbush Securities praised the company for powering OpenAI's ultrafast mode for its GPT-5.6 Sol model.
The chipmaker's stock is now down by around 43% from the high it touched shortly after its initial public offering earlier this year, and the stock looks like a buy as inference demand soars.
Cerebras makes systems built around its wafer-scale chips -- processors the size of dinner plates that are made from a whole silicon wafer. They can contain a large amount of static random-access memory (SRAM), which is an advantage, but they also require special cooling and power management, which makes them a premium option.
However, having many standard chips' worth of hardware on a single extra-large chip also makes them super-fast and ideal for the decode phase of inference. The company is teaming up with Advanced Micro Devices, whose Helios solution will cut down costs and offer strong value. It also has big deals in place with OpenAI and a partnership with Amazon through Amazon Web Services that is expected to go live early next year.
Soaring revenue and improving gross margins Cerebras saw 74% revenue growth in the second quarter, with sales climbing to $180.1 million. Its core sales figure, which strips out revenue distortions caused by customer warrants and pass-through accounting, more than doubled to $209.9 million.
More and more customers are renting out its systems, which led to its cloud revenue surging 281% year over year to $126 million, and its core cloud revenue soaring 287% to $127.7 million. Hardware revenue sank 23% year over year to $54.1 million, while core hardware revenue rose 17% to $82.1 million.
Gross margins have been a point of contention for the company. Its core gross margins came in at 40.6%, up 940 basis points versus a year ago. Core gross margin for its cloud operation was 41.8%, a 1,600 basis point year-over-year improvement, while core hardware gross margin was 38.8%, 510 basis points higher than a year earlier. However, core gross margin fell sequentially from 46.5% in the first quarter due to higher costs from renting back systems to meet urgent demand.
Management projected third-quarter revenue of between $214 million and $216 million, with core gross margins between 38% and 40%. Cerebras also upped its full-year guidance, taking its core revenue forecast to a range of $880 million to $890 million, up from a prior outlook of $855 million to $865 million. It now sees its core gross margins coming in between 41% and 43%, up from an earlier projection between 38% and 41%.
For 2027, management is looking for core revenue to surge more than threefold and is expecting strong growth in 2028 and beyond. It is projecting core gross margins to improve in 2027 and move toward its 60%-plus long-term target.
Image source: The Motley Fool.
The AI inference market is heating up, and the size of that segment is expected to eventually become much larger than AI training for Cerebras. Bloomberg Intelligence is projecting it will grow at a 32% compound annual rate through 2032 to reach $1.3 trillion, nearly double the size of the AI training market. While Nvidia dominated the AI processor market when it came to hardware for training, the inference market looks like it will have multiple winners, including Cerebras.
Although the company's systems are a more expensive option, their superior performance should help it gain its fair share of this rapidly growing segment. The OpenAI announcement is the perfect example of the opportunity in front of Cerebras at the high end of the market.
Meanwhile, I really like its partnership with AMD. A combined solution, where AMD chips can more cheaply handle the pre-fill inference phase -- the initial stage of large language model inference -- should be very compelling and help give customers the best of both worlds. Cerebras' deals with OpenAI and Amazon also provide a strong core customer base, and over time, its customer base should expand.
Given the growth of the inference market and the huge opportunity ahead of it, Cerebras looks like a solid buy, albeit a speculative one, on its recent price dip.
SUNNYVALE, Calif., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Cerebras Systems (NASDAQ: CBRS) today introduced the Cerebras CS-4, the fastest AI accelerator in the industry. The CS-4 is a rack-scale solution built from three new Wafer Scale Engines and revolutionary rack and system designs. The CS-4 is the first member of the next-generation Cerebras Nexus rack-scale platform architecture. It is up to twice as fast as the CS-3, bringing the CS-4s advantage in tokens-per-second-per-user over GPUs to up to 30x more.
The CS-4 solution also delivers up to 10x more throughput per watt than the CS-3, vastly improving data center economics. Because fast tokens are more valuable than slow tokens, the CS-4 delivers both higher-value tokens and more total tokens within a given power budget—enabling datacenters to be vastly more profitable.
“In AI, speed is productivity,” said Andrew Feldman, CEO and co-founder of Cerebras. “Historically, fast inference meant using smaller and less capable models. Cerebras CS-4 delivers industry-leading speeds on the largest frontier models, fundamentally changing the paradigm. Every aspect of the design has been optimized to deliver the highest speeds with massive throughput. With the CS-4, AI is so fast that it fundamentally reshapes product experiences.”
The rack scale CS-4 is built from three of the newly released Wafer Scale Engine 3 Turbo (WSE-3T). The CS-4 delivers 750 PFLOPs of AI compute, 7.2 terabits per second of I/O, and 129.6 petabytes per second of memory bandwidth. Total compute fabric bandwidth jumps to 160.5 petabytes per second, and wafer to wafer latency drops as low as two microseconds, enabling the creation of very large clusters and the support of models with over 50 trillion parameters.
“CS-4 makes dramatic improvements in system deployability, reliability, and networking, which enables scaling performance to larger models for large scale token factories,” said Dylan Patel, founder and CEO, SemiAnalysis. “CS-4 will scale ultrafast tokens for larger models and significant user volumes. The Cerebras Backpack is focused on time to market. As ultrafast inference continues to grow, Cerebras’ newest hardware will help ensure frontier speeds.”
A New Leader in AI Inference Speed and Capacity
The CS-4 sets a new high watermark for inference speed. In a head-to-head comparison on GPT-OSS-120B, when given identical prompts, the CS-4 delivers[1] more than 4,400 tokens second per user (TPS/user), up to 30 times faster than GPU solutions.
“Being 30 times faster doesn’t just make a response feel fast. It gives an agentic system room for more than an order of magnitude as much reasoning, verification, or tool use in the same wall-clock time,” said Sean Lie, CTO and co-founder of Cerebras. “That’s the difference CS-4 makes for real production workloads.”
A New Processor
CS-4 is powered by the newly announced WSE-3 Turbo (WSE-3T). Like the WSE-3, the WSE-3T is the largest AI processor ever built, containing four trillion transistors and 900,000 AI-optimized cores across 46,225 square millimeters of silicon, with 44GB of SRAM integrated directly on the wafer.
The WSE-3T doubles AI compute to 250 PFLOPS per wafer and doubles memory bandwidth to 43.2 petabytes per second. And since memory bandwidth is the determining factor in driving speed and throughput, this translates to a step-change improvement in both. The on-chip fabric bandwidth and off-chip I/O both double to 53.5 petabytes per second and 2.4 terabits per second respectively. I/O latency shrinks from five microseconds to as low as two microseconds.
New System and Rack Design
CS-4 is the first iteration of the new Cerebras Nexus Platform Architecture. It is built around a modular concept with three foundational elements: Compute, Power and I/O. Cerebras brings significant innovation to each element. Modularity enables each element to scale independently so innovations get to market faster. The modular architecture also supports extremely rapid deployment and upgrades.
Pluggable Backpack Design: Cerebras has fundamentally re-imagined the compute subsystem into a rear mounted “backpack” that attaches vertically to the power array. Each Wafer-Scale Backpack is a self-contained assembly that folds power conversion, direct liquid cooling, high-speed I/O, and control electronics into a compact, three-dimensional package built directly around the wafer. By decoupling compute from the power supplies, the Wafer-Scale Backpack simplifies manufacturing and reduces deployment time from days to hours. Compared with the prior-generation system, the Wafer-Scale Backpack has 50% fewer components and uses 60% more automated manufacturing.
High-Density Power Delivery: The Nexus Platform Architecture drives significant power delivery improvements. For example, by moving power conversion 100x closer to the processors – from roughly 50 millimeters away from the processor as on conventional GPU boards to approximately 0.5 millimeters – CS-4 nearly eliminates board-level power loss. This delivers twice as much power to the WSE-3T, enabling higher operating frequencies and faster token generation.
New Modular I/O Subsystem: CS-4 introduces a new programmable I/O subsystem that supports two connectivity modes while doubling I/O bandwidth and reducing latency. More bandwidth and lower latency benefits both aggregated and disaggregated solutions.
The fully programmable Wafer I/O Module supports standards-based RoCE v2 RDMA over Ethernet for seamless integration into existing infrastructure and with an ecosystem of heterogeneous systems. Aggregate off-wafer bandwidth doubles to 2.4 terabits per second per wafer and 7.2 terabits per CS-4 rack solution.
The Wafer I/O Module also supports a new communication mode, called Direct Wafer Links, which enables wafers to be linked within and across racks without a switch. Direct Wafer Links enables wafer-to-wafer latency as low as two microseconds. This low latency communication will allow the creation of massive CS-4 clusters and the ability to support models with more than 50 trillion parameters.
Programmable low latency I/O is particularly beneficial for heterogeneous disaggregated inference, in which a purpose-built prefill engine processes an incoming prompt and then hands it to Cerebras for ultra-low latency decode. The combination of programmability, standards-based interfaces, and very low latency will allow the rapid creation of disaggregated solutions from different Cerebras ecosystem partners, like AMD Helios and AWS Trainium.
First CS-4 shipments begin this quarter. Full system specifications are available in the CS-4 datasheet at https://www.cerebras.ai/cs4-datasheet.
[1] Actual throughput varies by model architecture, context length, precision, and serving configuration.
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
Cerebras Disclosure Information
Cerebras uses its investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras’ press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements about the anticipated benefits of CS-4 and WSE-3 Turbo, the rapid creation of disaggregated solutions, and the timing of CS-4 shipments; and any assumptions relating to the foregoing. The words "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "objective," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Cerebras’ control. These risks and uncertainties include, but are not limited to: Cerebras’ ability to sustain and manage its growth, access borrowings and other sources of capital on acceptable terms, and deploy available capital to support growth; its history of net losses and ability to achieve and maintain profitability; its limited operating history at its current scale and ability to accurately forecast revenue and appropriately budget and manage expenses; its dependence on a limited number of significant customers, including OpenAI, Group 42 Holding Ltd, Mohamed bin Zayed University of Artificial Intelligence, and AWS, and the potential impact of any reduction in demand from, material adverse development in its relationships with, or failure to meet its obligations to, such customers, including under its Master Relationship Agreement with OpenAI; the timing, execution and expected benefits of its strategic customer, partner and financing arrangements; its historical reliance on sales of hardware systems and the early-stage, rapidly evolving market for its cloud-based offerings and AI infrastructure; its ability to secure sufficient data center capacity and capital to support its cloud-based offerings; its ability to launch new offerings and add new product capabilities; and its ability to compete effectively in the rapidly evolving and competitive market for AI computing solutions.
Cerebras’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Accordingly, undue reliance should not be placed on such statements. These forward-looking statements are made as of the date they were first issued and are based on information available to Cerebras together with Cerebras’ expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. These forward-looking statements should not be relied upon as representing Cerebras’ views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results. Cerebras undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Further information on potential risks that could affect actual results is included in Cerebras’ most recent filings with the SEC, including in Cerebras’ most recent Quarterly Report on Form 10-Q, copies of which may be obtained by visiting Cerebras’ Investor Relations website at investors.cerebras.ai or the SEC’s website at www.sec.gov.
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Cerebras Systems (CBRS.O) announced on Tuesday a new version of its server hardware that includes its dinner-plate-sized chips that it says will speed AI chatbot queries.
Cerebras makes AI hardware and chips that compete with Nvidia (NVDA.O) and targets the portion of AI called inference, the computing process of generating an answer in a chatbot such as Anthropic’s Claude.
The new system, called the CS-4, is a server rack powered by three of the large chips the company designs, which Cerebras said translates into better performance. The hardware is based around the company’s Nexus server architecture, which includes pluggable modules that house the chips.
In part, Cerebras' chips gain a speed advantage because they are large enough to avoid the energy and slowdown of moving data from one chip to another.
The new machine is available in the third quarter and the chips are fabricated with the TSMC 5-nanometer manufacturing process, the company said.
Cerebras also designed the new system to be easier to set up with 50% fewer components, which Chief Technology Officer Sean Lie said at a media briefing in San Francisco would speed data center construction.
The server rack Cerebras designed includes a chip called WSE-3 Turbo and new networking components that Lie said would speed data movement between the chips. Cerebras plans another generation of the chip and server in 2027.
The company expects to deliver 600 megawatts' worth of computing power by the end of 2027, CEO Andrew Feldman said. The company’s engineering plans are focused on speeding the amount of data its future chips and systems can crunch.
“We're going to get four times as fast between now and the end of the year, end of 2027, and we're going to get 20 times more throughput,” Feldman said at the briefing.
Last week, Cerebras reported an adjusted loss of $6.9 million on sales of $180.1 million.
Cerebras' wafer-scale ASICs deliver industry-leading memory bandwidth and output speeds, positioning it to capture rising AI inference demand despite GPU dominance in training. The OpenAI deal, valued at over $20 billion, is expected to drive rapid revenue growth but creates significant customer concentration and requires heavy upfront capex. Near-term FCF margins will likely remain negative due to data center expansion, with positive FCF margins forecasted only by 2029 as scale and margins improve.
Cerebras (CBRS - Free Report) closed the last trading session at $218.98, gaining 26.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $283.45 indicates a 29.4% upside potential.
The average comprises 11 short-term price targets ranging from a low of $209.00 to a high of $330.00, with a standard deviation of $36.42. While the lowest estimate indicates a decline of 4.6% from the current price level, the most optimistic estimate points to a 50.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for CBRS, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CBRS Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 31.9%.
Moreover, CBRS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CBRS could gain, the direction of price movement it implies does appear to be a good guide.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CBRS, NBIS, CRWV, ALAB, CRDO, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
are seeing pricing trends in AI data center services that could support further growth as demand for computing capacity continues to exceed available supply.
Wedbush analyst Matt Bryson said recent earnings commentary from both companies points to favorable economics for AI infrastructure. He estimates that customers can recover investments in AI servers within roughly three years or less, supporting continued spending on training and inference capacity.
Bryson said the trend may also benefit companies supplying hardware for AI data centers. He highlighted Cerebras (CBRS), which is expanding its infrastructure plans for 2027 and working to secure additional wafer supply for its wafer-scale processors.
Cerebras recently reported second-quarter results that led to a decline in its shares, but the Wedbush analyst expects upcoming company events could provide additional information on its expansion plans.
The broader assessment suggests AI infrastructure investment may have more room to grow. For companies such as Nebius and CoreWeave, higher pricing and sustained demand could provide support as they add capacity to serve customers developing and running AI models.
Digi Power X (DGXX) transitions from crypto mining to AI infrastructure, anchored by a $1.1B take-or-pay contract with Cerebras for 40 MW in Alabama. DGXX's dual revenue model—colocation and GPU rentals—offers both predictable income and upside from compute scarcity, with management targeting $140M+ annualized contracted run rate in 2027. The current $150M cash balance and no debt support project execution, but ongoing equity raises dilute shareholders; prudent debt financing is preferred for future growth.
I'm reiterating Cerebras Systems (CBRS) as a Buy with an updated price target of $284. CBRS raised 2026 core revenue guidance to $880–$890 million and expects at least 3x core revenue growth in 2027, improving revenue visibility. Core cloud and services revenue surged 287% y/y, supporting the thesis of CBRS as an AI inference infrastructure platform with expanding operating leverage.
Cerebras cleared all three numbers it guided to seven weeks ago, then raised the full year by $25 million on a $15.9 million beat. Shares fell almost 12% anyway. The entire raise is backloaded into the fourth quarter. Q4 revenue has to jump 22 to 28% right after Q3 was guided at 2%. Cerebras guides on core. The headlines graded the quarter on GAAP, which turns an 8.2% core beat into a 7.26% GAAP miss.
Key Takeaways Cerebras shares fell 12% after Q2 as Q3 core revenue guidance implied just 2-3% sequential growth.CBRS expects Q3 core gross margin of 38-40% and core operating margin of negative 25-23%.Cerebras has $25.4B in RPO and more than 600 MW of data-center capacity live or contracted through 2027.
Cerebras Systems (CBRS - Free Report) shares have dropped a massive 12% since it reported second-quarter 2026 results on Wednesday (Aug. 12). The company delivered core revenues of $209.9 million, which jumped 103% year over year, while core cloud and other services revenues surged 287% year over year. However, CBRS’ third-quarter 2026 core revenue guidance of $214-$216 million implies only about 2-3% sequential growth from the second quarter of 2026, which failed to impress investors. Cerebras also acknowledged that quarterly revenues can vary significantly depending on the timing of large cloud-capacity additions and hardware shipments. Investors may also have reacted negatively to the expected deterioration in profitability during the third quarter of 2026.
Cerebras shares are also trading at a premium, as suggested by the Value Score of D. So, what should investors do with the CBRS stock post the dip? Let us find out.
Margin Compression to Hurt CBRS’ Near-Term ProspectsIn the second quarter of 2026, core gross margin declined 590 basis points (bps) sequentially to 40.6% in the second quarter of 2026 as Cerebras temporarily rented systems back from customers to satisfy strong inference demand. The company expects the third quarter of 2026 to represent the trough, with core gross margin guided to 38-40%, while core operating margin is expected to deteriorate to negative 25-23% from negative 16% in the second quarter of 2026. Although management expects margins to recover as higher-cost rented capacity is replaced by Cerebras-owned systems, the near-term margin pressure likely tempered enthusiasm around the revenue outlook. For 2026, Cerebras now expects core gross margin between 41% and 43% while operating margin in the negative 19-17% range.
Cerebras is also perceived as risky by investors due to customer concentration and dependence on OpenAI. Revenues remain concentrated among a small number of customers as three customers individually represented 34%, 32% and 10% of second-quarter 2026 revenues, while a significant portion of Cerebras’ $25.4 billion remaining performance obligations (RPO) is tied to its OpenAI agreement. The company acknowledged that OpenAI will remain a meaningful contributor in 2027, even though its share of revenues should decline as AWS and other customers scale.
Moreover, conversion of RPO into revenue requires substantial infrastructure deployment. Roughly 22% of CBRS’ RPO is expected to be recognized during the first 24 months through June 2028, while another 43% in months 25-48 and the balance thereafter. Although this strong RPO provides exceptional long-term visibility, the risk remains with the timing of customer deployment decisions. Cerebras explicitly described data-center availability as an industry-wide bottleneck and said that even the more than 600 MW already live or contracted through 2027 is “not nearly enough” to meet demand.
Cerebras’ prospects are suffering from stiff competition from the likes of NVIDIA (NVDA - Free Report) , Advanced Micro Devices (AMD - Free Report) and Intel (INTC - Free Report) in the AI space. NVIDIA is dominating the AI GPU market through its Blackwell, Hopper, DGX/NVL systems that are used for AI training and inference. AMD’s MI300 and MI350 accelerator families are competing with CBRS in hyperscale AI infrastructure and enterprise AI clusters. Meanwhile, Intel’s Gaudi AI accelerators target enterprise AI training and inference as a lower-cost GPU alternative.
In the past month, CBRS shares have jumped 25.5%, underperforming AMD, NVIDIA and Intel. Shares of AMD have dropped 8.4%, while NVIDIA and Intel returned 6% and 1.5%, respectively.
CBRS Stock’s Price Performance
Image Source: Zacks Investment Research
Strong Backlog & Expanding Manufacturing Capacity Aids CBRSCerebras’ strong RPO provides the company with strong visibility into future demand. The company expects core revenue to more than triple in 2027 and continue growing at multiples in subsequent years as this contracted demand is converted into revenue. Importantly, CBRS said the existing RPO does not include backlog from AWS or other hyperscalers, suggesting additional hyperscaler wins could represent incremental upside rather than simply supporting the existing growth target.
Cerebras is aggressively building the physical capacity needed to monetize demand. The company has secured more than 600 MW of data-center capacity that is either operating or expected to come online by the end of 2027, while its pipeline of additional opportunities is measured in gigawatts. Manufacturing capacity is expected to increase by more than 10 times during 2026 and expand further in 2027. CBRS has also secured the TSMC wafer supply required for its near-term growth plans and avoids several key industry bottlenecks because its architecture does not require HBM, CoWoS packaging or leading-edge 3nm fabrication.
Moreover, Cerebras expects significant gains in both performance and throughput. The company plans to double system speed annually over the next several years and increase throughput by more than 20 times over roughly the next 18 months. Higher throughput means more tokens generated per system and per watt, lowering the cost of inference and increasing the revenue-generating capability of each data-center installation. This technology progression should be an important driver of longer-term gross-margin expansion, with Cerebras ultimately targeting core gross margins above 60%.
CBRS’ Estimate Revisions Show Improving TrendThe Zacks Consensus Estimate for CBRS’ 2026 loss is pegged at 89 cents per share, narrower than a loss of $1.14 per share over the past 60 days.
The consensus estimate for third-quarter 2026 loss is pegged at 32 cents per share, narrower than a loss of 44 cents per share over the past 60 days.
CBRS Stock: Here’s Why You Should BuyCerebras’ near-term outlook remains clouded by margin compression, customer concentration and the execution risks associated with rapidly expanding data-center capacity. However, the company’s $25.4 billion RPO, expanding manufacturing footprint, strong liquidity position and differentiated wafer-scale architecture provide solid visibility into long-term growth. Partnerships with OpenAI and AWS, along with continued improvements in inference speed and throughput, should further expand its addressable market and support margin improvement over time.
Moreover, Wall Street’s consensus price target implies roughly 24.32% upside from current levels.
Image Source: Zacks Investment Research
Cerebras currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cerebras' (CBRS) Q2 earnings outperformance and recent AMD Helios collaboration has materially weakened by previous sell thesis by improving WSE's opportunity within disaggregated inference architectures. OpenAI's GPT-5.6 Sol Ultrafast preview released this morning (August 14) also provides further validation of Cerebras' differentiated low-latency inference advantage. While I was wrong to underappreciate WSE's competitiveness alongside emerging rack-scale platforms, meaningful third-party penetration remains unproven - despite robust AI capex spending commitments.
SUNNYVALE, Calif., Aug. 14, 2026 (GLOBE NEWSWIRE) --
WHAT: Cerebras will host a livestream of its upcoming SUPERNOVA flagship event, featuring product announcements, keynotes and demos of ultra-fast AI inference and production AI applications.
The event will bring together Cerebras executives and industry-leading founders, researchers, enterprise leaders, investors and ecosystems partners, to shape the discussion of what’s to come.
WHEN: Tuesday, August 18 at 3:30 – 5:30 pm PT
WHERE: Livestream: www.cerebras.ai/supernova
WHO: Cerebras executives and special guests
REGISTER / WATCH: www.cerebras.ai/supernova
About Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) builds the world’s fastest AI infrastructure. The Cerebras team of pioneering computer architects, computer scientists, AI researchers, and engineers of all types came together to make AI blisteringly fast through innovation and invention. We believe that when AI is fast, it will change the world. Leading global corporations, research institutes, and governments choose Cerebras to run their AI workloads. Cerebras solutions are available on premises and in the cloud. Visit cerebras.ai for more.
Cerebras Disclosure Information
Cerebras uses its investor relations page (investors.cerebras.ai), its X account (@cerebras), and its LinkedIn page (linkedin.com/company/cerebras-systems/) to disclose material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, in addition to following Cerebras' press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public webcasts.
Cerebras Systems Inc. CEO Andrew Feldman says renting out compute capacity is very profitable. Shares fell Thursday morning after the company projected slower growth than some investors anticipated.
Key Takeaways Cerebras Systems' Q2 core revenues rose 103%, driven by a 287% surge in cloud services.CBRS raised 2026 core revenue guidance to $880-$890M and expects revenues to more than triple in 2027. Cerebras Systems secured 600 MW of data center capacity to support future growth. Cerebras Systems (CBRS - Free Report) reported a second-quarter 2026 loss of 4 cents per share, narrower than the Zacks Consensus Estimate, delivering an 80.95% earnings surprise.
Core revenues of $209.87 million rose 103% year over year and topped the consensus estimate by 8.09%. The upside was led by rapid adoption of fast inference services. Core cloud and other services revenues surged 287% year over year to $127.7 million, while remaining performance obligations reached $25.4 billion.
CBRS Cloud Business Drives Revenue GrowthCore cloud and other services revenues nearly quadrupled from $33 million a year earlier, reflecting the ramp-up of the OpenAI deployment and higher usage from other cloud customers. Core hardware revenues rose 17% year over year to $82.1 million.
Management said the revenue mix can vary significantly from quarter to quarter depending on the timing of large cloud-capacity additions and hardware shipments. Demand remained strong, with several late-stage hardware opportunities representing hundreds of millions of dollars and additional cloud deals targeted for 2027.
CBRS Sees Broader Customer AdoptionCerebras signed new cloud-capacity agreements with AI coding companies Cognition and Lovable. It cited Block, Figma, AlphaSense and GSK among customers using fast inference for agentic workflows.
The company highlighted CrowdStrike as an example of a new security use case, where low-latency large language model inference can inspect enterprise traffic inline. Management also said six deals worth more than $30 million each were signed during the quarter.
Cerebras Deepens AI Infrastructure PartnershipsThe company enabled support for OpenAI's GPT-5.6 Sol at 750 tokens per second. Cerebras also expanded its disaggregated inference strategy with AMD, pairing GPU-based prefill processing with Cerebras systems for decoding.
Management said the AMD configuration can maintain Cerebras' speed while increasing throughput by up to fivefold and is expected to enter production in the fourth quarter of 2026. A similar disaggregated inference offering with AWS is expected to become generally available through Amazon Bedrock in the first quarter of 2027.
CBRS’ Q2 Operating DetailsIn the second quarter of 2026, core gross margin was 40.6%, up about 940 basis points year over year. Core cloud and other services gross margin was 41.8%, while core hardware gross margin came in at 38.8%. Sequential margin pressure reflected the temporary use of higher-cost systems rented back from cloud customers.
Operating expenses totaled $502.8 million. Research and development expenses were $320.2 million, sales and marketing expenses were $87 million, and general and administrative expenses were $95.7 million. The sharp increase in reported expenses included substantial stock-based compensation costs.
Core operating loss was $33.6 million compared with $43.9 million a year earlier and core operating margin improved to negative 16% from negative 42%.
Adjusted EBITDA was a loss of $53.1 million compared with a loss of $38.3 million in the prior-year quarter.
CBRS Balance Sheet Supports Capacity InvestmentsThe balance sheet strengthened meaningfully. As of June 30, 2026, cash, cash equivalents, restricted cash and short-term investments totaled $8.6 billion. The company has access to an $850 million revolving credit facility, which remained unused at quarter-end.
For the first six months of 2026, net cash used in operating activities was $47.5 million. Purchases of property and equipment totaled $548.9 million as the company continued investing in the data center and infrastructure capacity needed to support future growth.
Cerebras Raises Full-Year OutlookFor the third quarter of 2026, Cerebras expects core revenues to be in the range of $214-$216 million. Core gross margin is projected between 38% and 40%, while core operating margin is expected between negative 25% and negative 23%.
For full-year 2026, management raised core revenue guidance to $880-$890 million. Core gross margin is expected to be 41%-43%, while core operating margin is projected between negative 19% and negative 17%. Management expects core revenues to more than triple in 2027.
CBRS Builds Capacity for 2027 ExpansionCerebras has secured more than 600 megawatts of data center capacity that is either live or under contract for delivery by the end of 2027. Its pipeline of additional data center opportunities is measured in gigawatts, as available capacity remains a key constraint on revenue growth.
Manufacturing capacity is expected to increase more than tenfold in 2026, supported by new factory lines at Flex, Sanmina and Rocket EMS. The company secured TSMC wafer supply and highlighted that its architecture does not require High Bandwidth Memory (HBM), CoWoS packaging or 3-nanometer fabrication technology.
CBRS Zacks Rank & Other Stocks to ConsiderCurrently, Cerebras Systems carries a Zacks Rank #2 (Buy).
A few stocks worth considering in the broader Zacks Business Services sector are Coursera (COUR - Free Report) , Gartner (IT - Free Report) , and ESCO Technologies (ESE - Free Report) . Coursera and Gartner currently sport a Zacks Rank #1 (Strong Buy) each, while ESCO Technologies carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rates for Coursera, Gartner and ESCO Technologies are pegged at 49.63%, 20.97% and 20.89%, respectively.
Shares of COUR and IT declined 24.1% and 28.9%, respectively, while ESE shares appreciated 53.7%.
Cerebras Systems (CBRS -11.85%) stock fell in Thursday's trading on the heels of the artificial intelligence (AI) chip specialist's second-quarter report. The company's share price had moved 11.9% lower in the day's session as of 3:45 p.m. ET despite a 0.7% gain for the S&P 500 and a 0.9% gain for the Nasdaq Composite.
Cerebras published its Q2 results after yesterday's market close, reporting sales and earnings that were below Wall Street's expectations. On the other hand, the company raised full-year sales and margin targets.
Image source: Getty Images.
Cerebras's Q2 performance disappointed investors
In the second quarter, Cerebras recorded a net loss of $2.98 per share on revenue of $180.11 million. The company's loss came in significantly higher than anticipated, exceeding the average analyst target by $1.31 per share. Meanwhile, sales for the period came in roughly $13.4 million below the average forecast. Even though the business still recorded 74% year over year revenue growth in the period, investors were expecting stronger expansion and less red ink on the bottom line.
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What's next for Cerebras?
While Cerebras's Q2 performance missed the mark, there was some good news for investors with the report. The company now expects that non-GAAP (adjusted) core full-year sales will be between $880 million and $890 million, a core gross margin between 41% and 43%, and a core operating margin between -17% and -19%. Previously, the company had targeted sales between $855 million and $865 million, a gross margin between 38% and 41%, and a core operating margin between -38% and -41%.
With the company significantly raising its outlook on key fronts, long-term investors shouldn't worry too much about the market's reaction to the business's misses in Q2. For those willing to embrace volatility and uncertainty, the sell-off could be a buying opportunity.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SUNNYVALE, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Cerebras (NASDAQ: CBRS) today announced that it is powering Ultrafast mode, a new service tier in the OpenAI API for GPT-5.6 Sol.
Cerebras Systems is well-positioned for a shift toward smaller, faster AI models that prioritize inference speed and memory efficiency over sheer model size. CBRS's architectural advantages, such as wafer-scale chips and reduced reliance on constrained supply chains, support its ability to meet rising demand for agentic inference. Raised FY guidance, strong Q2 core revenue growth (+103% YoY), and expanding cloud/inference ecosystem underpin a bullish outlook despite premium valuation and customer concentration risks.
Shares of Cerebras Systems (Nasdaq: CBRS) are down more than 17% in premarket trading this morning.
The fall follows the company’s second quarter earnings report, its second since a blockbuster IPO in May.
While Cerebras saw its Core revenue rise 103%, it wasn’t enough to satisfy Wall Street’s high expectations.
In quarter two, the AI chipmaker made $180.1 million in total revenue, about $14 million short of analysts’ predicted $194 million, according to consensus estimates cited by CNBC.
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Cerebras also reported a net income loss per share of $2.98 for the quarter and $4.34 for the first half of the year. Those figures were positive in 2025, with diluted net income per share at $1.91 and $1.76, respectively.
Even before Wednesday’s after-hours earnings report, the company’s shares were already down more than 15% from their first-day peak.
Still, despite some misses, Cerebras raised its full-year outlook from a range of $855 million and $865 million to between $880 million and $890 million.
Key Takeaways Cerebras is building data-center and manufacturing capacity to support faster revenue growth in 2027.More than 600 MW of data-center capacity is live or contracted for delivery by the end of 2027.OpenAI deployment and other cloud usage helped core cloud and services revenues rise 287% to $127.7M.
Cerebras Systems Inc. (CBRS - Free Report) used its second-quarter 2026 earnings call to emphasize the capacity build needed to support revenue expansion next year. CEO Andrew Feldman framed 2026 as a foundation year focused on data centers and manufacturing.
The call also featured higher 2026 guidance and strong fast-inference demand. The central message was that deployment speed will determine how quickly Cerebras converts demand into revenues.
CBRS Tops Estimates as Cloud Demand ExpandsCerebras reported a loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents. Revenues of $209.9 million exceeded the Zacks Consensus Estimate of $194.2 million.
CFO Robert Komin said core revenues rose 103% year over year to $209.9 million. Core cloud and other services revenues increased 287% to $127.7 million, while hardware revenues rose 17% to $82.1 million.
Komin, Cerebras’ CFO, attributed most of the increase to the OpenAI deployment ramp-up and increased usage by other cloud customers. He also cited late-stage hardware deals worth hundreds of millions of dollars.
Cerebras Builds Capacity for 2027CEO Andrew Feldman said Cerebras has secured more than 600 megawatts of data-center capacity that is live or under contract for delivery by the end of 2027. Its pipeline is measured in gigawatts.
Feldman, Cerebras’ CEO, called data-center space the main capacity bottleneck and said faster deployment supports faster revenue growth. He said TSMC wafer supply is in place for planned growth.
CFO Robert Komin said manufacturing capacity should increase more than 10 times in 2026. In Q&A, Komin said contracted facilities already provide three to four times more capacity for 2027 growth.
CBRS Raises Outlook, Flags Q3 Margin LowCFO Robert Komin guided third-quarter core revenues to $214-$216 million, core gross margin to 38-40% and core operating margin to negative 25% to negative 23%.
Komin, Cerebras’ CFO, raised full-year 2026 core revenue guidance to $880 million to $890 million. Core gross margin is expected at 41% to 43%, with core operating margin at negative 19% to negative 17%.
CFO Robert Komin said the third quarter should be the low point for core gross margin. Higher rented-system costs weighed on the second quarter, while lower-cost Cerebras-owned systems should support fourth-quarter improvement.
Cerebras Leans on Disaggregated InferenceCEO Andrew Feldman said the AMD solution combines Helios racks for prefill with Cerebras systems for decode. It maintains Cerebras speed while increasing throughput by up to five times and is expected in production in the fourth quarter.
Feldman, Cerebras’ CEO, said the AWS collaboration will bring disaggregated inference to Amazon Bedrock in the first quarter of 2027. The systems are deployed in Amazon data centers.
CEO Andrew Feldman said the roadmap calls for new systems that double speed each year for the next several years and solutions that increase throughput more than 20-fold over the next 18 months.
CBRS Addresses Concentration in Q&AA UBS analyst asked how customer concentration could evolve as OpenAI ramps and AWS comes online. CEO Andrew Feldman said OpenAI should remain meaningful next year but decline as a share of revenue over time as other businesses expand.
Feldman, Cerebras’ CEO, stressed that $25.4 billion of remaining performance obligations does not include backlog from AWS or other hyperscalers. He expects first revenue from other hyperscalers in mid-2027.
A Mizuho analyst asked about emerging neocloud customers. CEO Andrew Feldman said more neocloud providers are diversifying beyond a single hardware vendor and expects the category to become important to Cerebras in 2027.
Cerebras Keeps Execution at the CenterCEO Andrew Feldman framed capacity, capabilities and customers as the operating priorities. His emphasis remained on data-center expansion, manufacturing scale and better inference economics to support the planned 2027 acceleration.
CFO Robert Komin tied the growth plan to secured capacity and continued investment ahead of demand. Management remained focused on execution, particularly data-center delivery and margin progression.
CBRS Rank and Style Scores Stay MixedCBRS carries a Zacks Rank #2 (Buy), while its Value Score is F, Growth Score is D, Momentum Score is F and VGM Score is F. Under the Zacks framework, A and B Style Scores are the more favorable complements to top Zacks Ranks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank reflects earnings-estimate revision trends, while Style Scores assess value, growth and momentum characteristics. The current combination offers mixed signals, and the Zacks Rank can change as analyst estimates are revised after the just-reported results.
Cerebras Systems Inc (NASDAQ:CBRS) shares fell 11% Thursday after the AI chipmaker reported second-quarter revenue below Wall Street estimates, even as the company raised its full-year guidance.
The company posted second-quarter revenue of $180.1 million, missing the $194 million analyst estimate, though up 74% year-over-year.
Core revenue, which excludes certain accounting adjustments, came in at $209.9 million, up 103% year-over-year.
Gross margin came in at 14%, well below the 26.3% estimate. Core gross margin was 41%, up 940 basis points year-over-year.
Hardware revenue fell to $54.1 million, down 23% year-over-year and below the $73.1 million estimate. Cloud revenue rose 281% year-over-year to $126 million, ahead of the $116.3 million estimate.
Cerebras raised its full-year core revenue guidance to a range of $880 million to $890 million, above the $867.6 million estimate, with core gross margin guided to 41% to 43% and core operating margin guided to negative 17% to negative 19%.
For the third quarter, the company guided core revenue of $214 million to $216 million, above the $212 million estimate, with core gross margin of 38% to 40% and core operating margin of negative 23% to negative 25%.
Analysts at Wedbush said the results and raised guidance were largely in line with expectations, and attributed the stock's decline to elevated expectations heading into the print, given the shares' sharp run-up in the days before earnings. The firm also pointed to another sequential drop in hardware sales and a Q4 outlook that remained largely unchanged despite the higher Q3 and full-year guides.
On the hardware decline, Wedbush said management attributed the drop to customers lacking sufficient data center capacity to build out Cerebras installations. The firm said the dip was largely anticipated given prior expectations that a limited supply of wafers would need to be allocated to OpenAI, adding that while Cerebras appears to have secured incremental supply from TSMC, converting that into revenue will take time due to sales cycles and data center constraints, including hundreds of millions of dollars in late-stage deals still in the sales pipeline.
Wedbush said it views next week's Supernova event, which is expected to include the release of the WSE-4 chip and potential new customer and partner announcements, as a more likely catalyst for the stock than the quarterly print.
Cerebras Systems (CBRS) fell 18.34% premarket after the AI chipmaker reported second-quarter GAAP revenue of $180.1 million against an analyst consensus of $194
Company will relaunch as Zone Frontier Inc. to develop, power, and deliver next-generation AI data center campuses As previously announced, the Company's definitive agreement with Cerebras Systems, Inc. (NASDAQ: CBRS) for the Minnesota campus represents approximately $800 million of contracted value over the initial 10-year term with the potential to exceed $3 billion if fully extended Approximately $140 million of project equity capital funded or committed by the Company for the Minnesota data center campus, including net proceeds of the equity raise and proceeds from the completed sales of its Dogecoin holdings The Company does not anticipate raising any additional dilutive financing for the Minnesota data center project The completed financing advances ZONE's initial Minnesota campus and accelerates a growing pipeline of AI infrastructure projects HOUSTON, Aug. 13, 2026 /PRNewswire/ -- CleanCore Solutions, Inc. (NYSE American: ZONE) ("CleanCore" or the "Company"), a company building the critical infrastructure that powers the AI economy, yesterday announced the closing of its $100 million public equity raise. The equity raise is a defining milestone in ZONE's transformation into a pure-play developer of power-first AI infrastructure.
U.S. stock futures were mostly higher this morning, with the Dow futures gaining more than 100 points on Thursday.
Shares of Cerebras Systems Inc (NASDAQ:CBRS) fell sharply in pre-market trading after the company reported worse-than-expected quarterly sales.
Cerebras Systems reported GAAP quarterly losses of $2.98 per share, according to Benzinga Pro data. Quarterly revenue came in at $180.11 million which missed the Street estimate of $194.2 million by 7.26%.
Cerebras Systems shares dipped 17.4% to $216.00 in pre-market trading.
Here are some other stocks moving lower in pre-market trading.
Securitize Corp (NYSE:SECZ) shares dipped 19.8% to $6.30 in pre-market trading after the company reported worse-than-expected quarterly financial results. Stubhub Holdings, Inc (NYSE:STUB) tumbled 18% to $7.00 in pre-market trading after the company reported mixed quarterly financial results. Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) declined 11.6% to $32.09 in pre-market trading after the company reported fourth-quarter results. Virgin Galactic Holdings Inc (NYSE:SPCE) fell 10.6% to $2.95 in pre-market trading following second-quarter results. Pelagos Insurance Capital Ltd (NYSE:PLGO) dipped 10% to $21.90 in pre-market trading after the company reported worse-than-expected quarterly financial results. Spire Global Inc (NYSE:SPIR) declined 7.5% to $13.63 in pre-market trading following second-quarter results. Resideo Technologies Inc (NYSE:REZI) declined 6.8% to $23.96 in pre-market trading after the company posted second-quarter results and named Shane Harrison as chief financial officer. Pan American Silver Corp (NASDAQ:PAAS) fell 6.3% to $49.10 in pre-market trading following weak quarterly results. Cisco Systems Inc (NASDAQ:CSCO) declined 6.2% to $116.21 in pre-market trading following fourth-quarter results. mF International Limited (NASDAQ:MFI) fell 5.1% to $7.50 in pre-market trading. Hycroft Mining Holding Corp (NASDAQ:HYMC) fell 5% to $26.10 in pre-market trading. Photo via Shutterstock
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Cerebras Systems slumped over 18% premarket on Thursday after it missed key estimates despite soaring cloud revenue, raising doubts about the ability of its AI chips to challenge Nvidia.
Cerebras Systems Inc (NASDAQ:CBRS) on Wednesday reported worse-than-expected quarterly sales.
Cerebras Systems reported GAAP quarterly losses of $2.98 per share, according to Benzinga Pro data. Quarterly revenue came in at $180.11 million which missed the Street estimate of $194.2 million by 7.26%.
"This was an outstanding quarter for Cerebras. Core revenue more than doubled to $210 million, and our cloud business nearly quadrupled year-over-year," said Andrew Feldman, Cerebras co-founder and CEO.
Cerebras Systems shares dipped 17.6% to $215.98 in pre-market trading.
These analysts made changes to their price targets on Cerebras Systems following earnings announcement.
Morgan Stanley analyst Joseph Moore maintained the stock with an Overweight rating and raised the price target from $273 to $279. Mizuho analyst Vijay Rakesh maintained the stock with an Outperform rating and lowered the price target from $310 to $300. Wedbush analyst Matt Bryson maintained the stock with an Outperform rating and raised the price target from $280 to $290. Considering buying CBRS stock? Here’s what analysts think:
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Cerebras Systems stock NASDAQ:CBRS whipsawed on Wednesday after investors cheered the Nvidia challenger before earnings, then punished it once the numbers arrived.
The stock jumped 11.6% during the regular session to $262.06, only to fall about 18% in extended trading.
Core revenue more than doubled, cloud revenue nearly quadrupled and management raised its full-year outlook.
The problem was not demand. Cerebras is spending heavily to add computing capacity fast enough to serve customers, squeezing margins when its valuation leaves little room for disappointment.
Cerebras reported core revenue of $209.9 million, up 103% year on year and above guidance.
Core cloud and services revenue rose 287% to $127.7 million as OpenAI deployments and customer usage expanded.
GAAP revenue was $180.1 million, below Wall Street’s roughly $194 million expectation.
Cerebras also lifted full-year core revenue guidance to $880 million-$890 million and said it plans to more than triple revenue in 2027.
That makes the sell-off harder to explain as a simple earnings miss.
Morgan Stanley had made a similar point after Cerebras’ previous post-earnings decline.
Analysts said “nothing in these numbers was disappointing,” while arguing management’s forecasts could prove conservative.
The latest results leave the same tension intact, as customers want Cerebras technology, but investors increasingly want evidence that growth will translate into stronger economics.
The clearest pressure point is gross margin.
Core gross margin fell to 40.6% from 46.5% in the first quarter. Cerebras said it is temporarily renting systems back from cloud customers to meet inference demand while its own data-centre capacity comes online.
That serves customers sooner, but makes current revenue more expensive.
Management expects core gross margin to fall further to 38%-40% in the third quarter before improving significantly in Q4 as more Cerebras-owned systems become available.
Wedbush analyst Matt Bryson had warned that Cerebras carried “almost zero demand risk”, according to MarketWatch, but that expectations would be dictated by execution.
TD Cowen similarly said margins would be pressured as Cerebras aggressively ramped capacity.
That argument now looks central. Cerebras may have more demand than its present infrastructure can efficiently handle.
For investors following the stock through investment apps, the question is no longer whether customers are arriving. It is how quickly Cerebras can add capacity without giving away too much profitability.
Cerebras ended June with $25.4 billion of remaining performance obligations, an enormous contracted revenue pipeline for a newly public AI company.
Yet Barron’s noted that backlog was broadly unchanged from the previous quarter. For a stock that had already surged nearly 12% before earnings, investors may have wanted another major step-up.
The company still has powerful growth levers. It has more than 600 megawatts of data-centre capacity live or under contract through 2027, plans to expand manufacturing capacity more than tenfold this year and counts OpenAI, AWS, AMD and CrowdStrike among partners or customers.
Its balance sheet is strong after the IPO, with $8.6 billion of cash, restricted cash and short-term investments at quarter-end.
But demand is only half the equation. Cerebras has shown that its wafer-scale architecture can attract major AI customers. What it has not yet shown is that explosive demand can be converted into explosive profits.
Společnost Cerebras Systems, která navrhuje obrovské čipy a staví specializované systémy pro trénování a provoz rozsáhlých modelů umělé inteligence, zveřejnila výsledky za druhý kvartál 2026. Očištěné tržby i celoroční výhled překonaly konsensus analytiků, tahounem byl cloudový byznys, jehož tržby se meziročně téměř zčtyřnásobily. Investorům ale zřejmě nestačil výhled vzhledem k vysokému ocenění.
Výsledky společnosti Cerebras Systems (CBRS) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Očištěné tržby (mil. USD) 209,9 194,0 103,3 Čistý zisk (mil. USD) -450,5 -- 309,5 Zisk na akcii (EPS, USD/akcie) -2,98 -- 1,91 Výsledky Celkové tržby vzrostly meziročně o 74 % na 180,1 mil. USD, očištěné (jádrové) tržby stouply o 103 % na 209,9 mil. USD a překonaly konsensus 194 mil. USD.
Hlavním motorem byly cloudové a další služby, jejichž očištěné tržby vyskočily o 287 % na 127,7 mil. USD, přičemž konsensus činil 116,3 mil. USD. Očištěné tržby z hardwaru činily 82,1 mil. USD, meziročně o 17 % více, což bylo nad odhadem 73,1 mil. USD.
Hrubá marže dosáhla 14 %, přičemž konsensus počítal s 26,3 %, očištěná hrubá marže činila 41 %, tedy zhruba o 940 bazických bodů více než ve 2Q 2025.
Provozní náklady vzrostly na 502,8 mil. USD z 89,3 mil. USD před rokem.
Zbývající výkonnostní závazky (RPO) ke konci kvartálu dosahovaly 25,4 mld. USD.
Z IPO, které proběhlo během druhého kvartálu, firma získala hrubý výnos 6,4 mld. USD.
Kapacita v provozu a nasmlouvaná k dodání do konce roku 2027 se zvýšila na více než 600 MW, pipeline příležitostí se rozšířila na gigawatty.
Výhled Ve třetím kvartále společnost očekává:
Očištěné tržby přibližně 214 až 216 mil. USD. Konsensus byl na úrovni 211,9 mil. USD. Očištěnou hrubou marži v rozmezí 38 až 40 %. Analytici v průměru predikovali 36 %. Očištěnou provozní marži zhruba -25 až -23 %. V celém roce 2026 poté Cerebras projektuje:
Očištěné tržby v rozmezí 880 až 890 mil. USD, dříve 855 až 865 mil. USD. Trh predikoval 867,6 mil. USD. Očištěnou hrubou marži cirka 41 až 43 %. Očištěnou provozní marži zhruba -19 až -17 %. Komentář vedení „Pro Cerebras to byl vynikající kvartál. Očištěné tržby se více než zdvojnásobily na 210 mil. USD a náš cloudový byznys se meziročně téměř zčtyřnásobil," uvedl spoluzakladatel a generální ředitel Andrew Feldman. „Rychlost mění to, co umí AI. Dělá ji užitečnější, produktivnější a otevírá zcela nové trhy. Poptávka po rychlé inferenci je proto obrovská a Cerebras škáluje, aby jí vyhověl a zajišťuje další kapacitu datových center, rozšiřuje výrobu a roste se zákazníky a partnery včetně OpenAI, AWS, AMD a CrowdStrike."
„Naše kvartální výsledky překonaly náš výhled napříč všemi klíčovými metrikami základního byznysu. Trh silně ocenil hodnotu rychlé inference. Oproti loňsku jsme výrazně zlepšili očištěnou hrubou i provozní marži," řekl finanční ředitel Bob Komin. „V klíčových oblastech nutných k dodání výjimečného růstu proti našim zbývajícím výkonnostním závazkům ve výši 25,4 mld. USD jsme udělali rychlý pokrok a v roce 2027 plánujeme více než ztrojnásobit tržby."
Pohled analytiků Analytik Kunjan Sobhani z Bloomberg Intelligence uvedl, že výhled Cerebrasu na 3Q a fiskální rok 2026 je jen mírně nad očekáváním, řádově o jednotky procent v nízkém pásmu, což může utlumit pozitivní čtení výsledků.
Analytik Joseph Moore z Morgan Stanley uvedl, že slabost akcie po silném kvartálu by se měla ukázat jako příležitost k nákupu. Cerebras podle něj vykázal lepší než očekávaná čísla jak u očištěného hardwaru, tak u cloudu, spolu s vyššími prognózami na letošní rok a pozitivním popisem novějších příležitostí v disagregované inferenci u AMD.
Analytik Tom O'Malley z Barclays uvedl, že akcie je pod tlakem poté, co celkové tržby vyšly v souladu s konsensem, a to nestačí k překonání vysoko nastavené laťky. Páteční vypršení lock-upu (lhůty, po kterou nesmějí zaměstnanci a předchozí investoři po IPO prodávat své akcie, pozn. autora) u největšího balíku akcií také pravděpodobně přispívá k tlaku.
Vývoj akcie Akcie Cerebras Systems (CBRS) v předburzovní fázi obchodování oslabují o 17,96 % na 215 USD.
Akcie Cerebras Systems (CBRS) včera posílily o 11,6 % na 262,06 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 63,7 P/E 35,6 Vývoj za letošní rok (%) -- Očekávané P/E -- 52týdenní minimum (USD) 160,8 Prům. cílová cena (USD) 286,5 52týdenní maximum (USD) 386,3 Dividendový výnos (%) -- Zdroj: Cerebras Systems, Bloomberg
Cerebras (CBRS - Free Report) reported $209.87 million in revenue for the quarter ended June 2026, representing no change year over year. EPS of -$0.04 for the same period compares to $0 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $194.16 million, representing a surprise of +8.09%. The company delivered an EPS surprise of +80.95%, with the consensus EPS estimate being -$0.21.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cerebras performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Cloud and other services: $125.99 million versus $114.99 million estimated by two analysts on average.Revenue- Hardware: $54.12 million versus $79.18 million estimated by two analysts on average.Core gross profit- Cloud and Other Services: $53.34 million versus the two-analyst average estimate of $53.75 million.Core gross profit- Hardware: $31.88 million versus $43.12 million estimated by two analysts on average.View all Key Company Metrics for Cerebras here>>>
Shares of Cerebras have returned +15.2% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
