Updated version 2 - Cerebras share price soars as raised earnings forecast and unexpected profit ease concerns about AI spending

Update stock price data in the first paragraph

Reuters, November 13 - In early trading on Friday, shares of Cerebras Systems (CBRS.O) rose over 14% after the chipmaker raised its (link) annual revenue forecast and reported better-than-expected earnings, signaling strong momentum in its challenge to Nvidia NVDA.O in the artificial intelligence chip market.

If the rally holds, Cerebras' market capitalization will increase by over $3 billion, as this upbeat outlook helps offset concerns about heavy spending in artificial intelligence and the uncertainty sparked by Nvidia CEO Jensen Huang's resignation.

• As of Thursday's close, Cerebras' share price had declined 47.2% from the IPO (link) price of $185 per share in May

• Cerebras now expects adjusted revenue in 2026 to be between $940 million and $960 million, up from a previous forecast of $880 million to $890 million

• According to data compiled by London Stock Exchange Group (LSEG), analysts previously expected average revenue for the period to be $887.04 million

• The chipmaker reaffirmed its plan to triple revenue by 2027 and said it had signed a cloud services agreement with Microsoft MSFT.O, with details to be disclosed next year
  

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• On the earnings call, CEO Andrew Feldman said that delivery delays under the $20 billion multi-year agreement Cerebras made with OpenAI (link) are due to industry-wide land and power shortages, rather than limits in chip manufacturing

• In the third quarter, adjusted cloud services and business revenue reflecting the impact of the OpenAI contract more than tripled to $144.9 million

• Adjusted profit was $29.82 million, compared to an adjusted loss of $10.86 million a year earlier. Analysts previously expected an adjusted loss of $38.4 million

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