Cerebras Stock Surges After Microsoft Deal. Can The AI Chipmaker Sustain Its Growth? Merin Rebecca Thomas Fri, November 13, 2026 at 8:56 AM EST 5 min read CBRS +11.71% MSFT -0.60% Trade MSFT on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Cerebras Systems (NASDAQ: CBRS) shares jumped nearly 18% in premarket trading Friday after the artificial intelligence chipmaker disclosed a cloud computing deal with Microsoft and raised its annual revenue forecast, as demand for its AI infrastructure continued to accelerate.
Cerebras shares climbed 17.71% to $115.06 in premarket trading Friday, compared with Thursday's closing price of $97.75. Despite the gains, the stock remained well below its May IPO price of $185 per share.
Cerebras now expects 2026 core revenue of $940 million to $960 million, compared with its previous forecast of $880 million to $890 million. The company also reiterated its expectation that revenue will triple in 2027 as major technology companies increase their investments in AI computing.
The stronger outlook comes as investors question whether the billions of dollars flowing into artificial intelligence infrastructure will generate sustainable returns. For Cerebras, the latest results point to growing customer demand, although delivering on its expanding contracts will require significantly more computing capacity.
CEO Andrew Feldman confirmed the Microsoft agreement during Thursday's earnings call, although financial terms were not disclosed. The company plans to share more details next year, according to Reuters.
The agreement adds another major technology customer to Cerebras' business as it works to expand beyond its existing relationships with companies including OpenAI and Oracle.
Cerebras specializes in wafer-scale processors designed to handle large AI workloads. Unlike conventional graphics processing units, its technology integrates substantial computing power onto a single, unusually large chip, reducing the need to move data between separate processors.
Its systems are particularly focused on AI inference, the process through which trained AI models generate responses and perform tasks. Demand for inference capacity has been increasing as businesses deploy AI services to larger numbers of users.
Oracle is also integrating Cerebras' technology into Oracle Cloud Infrastructure, with availability expected in 2027. The arrangement will allow customers to access Cerebras' high-speed processing capabilities through Oracle's cloud platform rather than purchasing specialized hardware directly.
Cerebras reported third-quarter core revenue of $230.9 million, up 70% from a year earlier and above analysts' expectations of $214.7 million, according to LSEG estimates.
Its core cloud and other services revenue surged 272% to $144.9 million, reflecting growing demand for AI inference services, including computing capacity supplied to OpenAI.
The company also reported an adjusted profit of $29.82 million, compared with an adjusted loss of $10.86 million a year earlier. Analysts had expected an adjusted loss of $38.4 million.
However, Cerebras' results under generally accepted accounting principles painted a less profitable picture. GAAP revenue climbed 55% to $210.8 million, while the company reported a net loss of $161.2 million, compared with $22.2 million a year earlier.
The difference reflects adjustments that exclude certain expenses from the company's core financial measures. Cerebras' core gross margin improved to 41%, while its core operating margin remained negative at 14%, according to its third-quarter earnings release.
For the fourth quarter, Cerebras expects core revenue of $310 million to $330 million and a core gross margin of 47% to 49%. It also projects a core operating margin ranging from negative 1% to positive 1%, suggesting its adjusted operations could approach break-even.
The forecast offers a possible path toward improved profitability, although the company continues to spend heavily on manufacturing, product development and data center expansion.
Cerebras reported $26.1 billion in remaining performance obligations as of September 30, representing revenue tied to contractual commitments that have not yet been fulfilled.
A substantial portion is associated with its multiyear agreement to provide computing power to OpenAI, giving Cerebras visibility into potential future revenue while also creating pressure to deliver the infrastructure needed to meet those commitments.
Feldman told analysts that delays affecting the OpenAI agreement were caused by industrywide shortages of land and electricity for data centers, rather than problems manufacturing Cerebras' chips, according to Reuters.
The constraints highlight a broader challenge facing AI infrastructure providers: demand for computing power is growing faster than the physical facilities and energy supplies needed to support it.
To address the shortage, Cerebras has secured contracts for 700 megawatts of data center capacity scheduled for delivery by the end of 2027. It has also signed agreements for additional capacity in Norway and Finland, expanding its presence in Europe.
Cerebras is expanding its manufacturing operations through partnerships with Flex and Sanmina. The company expects its manufacturing capacity at the end of 2026 to be more than 10 times its level at the beginning of the year.
The chipmaker is also preparing to bring its next-generation CS-4 system into full production, while its CS-5 system is scheduled for release in early summer 2027. Cerebras says the new systems will offer faster AI inference speeds and improved energy efficiency.
The company reported $7.8 billion in cash, cash equivalents, restricted cash and short-term investments at the end of September.
During Thursday's earnings call, CEO Andrew Feldman acknowledged that shortages of land and electricity for data centers had delayed some deployments under the company's agreement with OpenAI. He said the delays were unrelated to chip manufacturing.
Cerebras has since secured contracts for 700 megawatts of data center capacity scheduled for delivery by the end of 2027, including additional capacity in Norway and Finland.
Despite Friday's rally, Cerebras shares remained below their May IPO price of $185. The stock had closed Thursday at $97.75 before rising following the company's earnings announcement.
For the fourth quarter, Cerebras expects core revenue of $310 million to $330 million, with a core gross margin of 47% to 49%. The company also projects a core operating margin ranging from negative 1% to positive 1%.
Cerebras has maintained its forecast for revenue to triple in 2027, following the expansion of its cloud computing business and agreements with major technology customers, including Microsoft, OpenAI and Oracle.
