Nvidia Rival Cerebras Rallies 13% After-Hours As Q4 Sales Forecast Blows Past Estimates

• Third-quarter revenue jumped 55% year over year to $210.8 million, propelled by a 265% surge in cloud and other services sales. 
• Cerebras projected fourth-quarter core revenue of $310 million to $330 million—averaging roughly $320 million.
• The chipmaker expects revenue to triple in 2027.

Chipmaker Cerebras Systems Inc.(CBRS) share price rallied 13% after-hours after the firm reported record third-quarter revenue and issued a fourth-quarter sales forecast that beat Wall Street estimates, challenging market leader Nvidia Corp.(NVDA) as it wades through Jensen Huang’s exit.

For the third quarter ended Sept. 30, Cerebras posted record revenue of $210.8 million, up 55% from $135.7 million in the same period a year earlier, beating analyst average expectations of $188.7 million. 

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Growth was anchored by Cerebras’ cloud computing division, which generated $141.9 million in revenue, a 265% increase from the prior-year quarter, offsetting a decline in direct hardware sales from $96.8 million to $68.9 million. 

Andrew Feldman, co-founder and CEO of Cerebras, said in prepared remarks that the chipmaker expects to triple revenues by 2027. 

Major Hyperscaler Wins And Capacity Expansion 

Cerebras attributed its momentum to rising demand for high-speed AI inference—the process of running trained AI models to generate responses—and an expanding roster of large cloud customers.

The company disclosed that it signed a cloud agreement with one of the world’s three largest cloud computing providers, commonly known as hyperscalers, with further details slated for next year. Cerebras also announced that Oracle Corp. will integrate Cerebras’ inference technology into Oracle Cloud Infrastructure in 2027.

To support long-term demand, Cerebras has contracted 700 gross megawatts of data center power capacity for delivery by the end of 2027, including new facilities in Norway and Finland. On the hardware front, the company is ramping up production of its CS-4 AI accelerator and confirmed that its next-generation Wafer Scale Engine 5 processor has entered system testing ahead of a targeted summer 2027 release for its CS-5 system.

The commercial gains arrive during a period of upheaval for rival Nvidia, whose board ousted CEO Jensen Huang on Thursday amid personal and security scandals.

Q4 And Full-Year 2026 Outlook 

Looking ahead, Cerebras projected fourth-quarter core revenue between $310 million and $330 million with the $320 million midpoint comfortably topping the $232 million average estimate compiled by Fiscal.ai.

The company expects fourth-quarter core gross margins between 47% and 49%, with core operating margins ranging from negative 1% to positive 1%. For the full year 2026, Cerebras raised its core revenue guidance to a range of $940 million to $960 million.

CBRS Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ towards Cerebras following the earnings release, with ‘normal’ message volume levels. 

CBRS stock has lost 47% year-to-date. 

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