web3: Cerebras Shares Drop 14% After Raising Full-Year Guidance

CoinWorld reported:

Cerebras raised its full-year revenue guidance after releasing its second earnings report since going public, but the market reacted lukewarmly, with shares falling about 14% in after-hours trading. The AI chip company stated that demand for its inference chips continues to grow rapidly.

The company disclosed that its core revenue for the second quarter was $210 million; on a GAAP basis, revenue was $180.1 million, with the discrepancy primarily related to what the company refers to as "pass-through revenue." Due to inconsistencies in accounting standards, the quarterly data is not fully comparable to analysts' expectations.

Quarterly Revenue and Guidance

Cerebras expects core revenue for the current quarter to be between $214 million and $216 million. Analyst expectations compiled by LSEG are for $212.6 million, but reports indicate that the market's expectations are not clearly aligned with the core revenue standard.

The company also raised its full-year core revenue forecast from a previous range of $855 million to $865 million, increasing it to between $880 million and $890 million. This indicates that management is more optimistic about order fulfillment in the second half of the year.

• Second quarter core revenue: $210 million
• Third quarter core revenue guidance: $214 million to $216 million
• Full-year core revenue guidance: $880 million to $890 million

Strong Demand for Inference Chips

CEO Andrew Feldman stated that AI demand is "very strong," and customers are willing to pay higher prices for the company's dedicated chips for inference scenarios. Cerebras currently focuses on low-latency inference capabilities, targeting interactive AI tasks that require quick responses.

The company expects its core gross margin for the quarter to expand to between 38% and 40%, in response to investor concerns about profitability. Feldman noted that fast inference products have premium pricing potential, and improvements in system output capabilities will also help enhance gross margin performance.

Intensifying Competition with Nvidia

Cerebras is challenging Nvidia on certain AI tasks, particularly in the low-latency inference space. The company went public on Nasdaq in May this year at an offering price of $185 per share, raising approximately $6.4 billion. Although the stock price has retreated from its May peak, it still closed at $262.06 on Wednesday, about 42% higher than the offering price.

The company also disclosed that its remaining performance obligations amount to $25.4 billion, which it views as a strong signal of future demand. Management expects that as shipping volumes increase, manufacturing efficiency, component procurement costs, and capacity dilution will all improve, and anticipates that revenue in the next fiscal year could reach three times the current level.

Recently, Cerebras also partnered with AMD, with related products planned for production later this year. The company stated that OpenAI can use its chips to service the latest model GPT 5.6-Sol. In addition to hardware sales, Cerebras also provides chip access through cloud services, which generated $126 million in revenue in the June quarter.

Additional Information: This is Cerebras' second earnings report since going public in May, and the market chose to sell off after the company raised its guidance, indicating that investors remain cautious about valuation, profit margins, and the pace of future fulfillment.

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