Cerebras Shares Jump 18% After Beating Revenue and Partnering with Microsoft

Cerebras Systems saw its stock climb 18% after exceeding revenue expectations in its latest quarterly report. The company announced a new contract with Microsoft which cements its position among major cloud providers.

Core revenue growth reached 70% during the period. CEO Andrew Feldman points to the fact that the scarcity and high cost of traditional graphics processing units create a strategic opportunity for the company's hardware.

Beyond Microsoft, the firm already maintains partnerships with Amazon and Oracle. The company aims to challenge Nvidia's leadership in the market for artificial intelligence chips.

For the fourth quarter, revenue projections range between 310 million and 330 million dollars. The expected gross margin varies from 47% to 49% which beats analyst estimates.

Management expects the company's revenue to triple by 2027. The contract with Microsoft was signed in October and the financial results from this operation should appear starting in the first quarter of 2027.