Us, in 2024: “Cerebras Systems is opportunistic, if nothing else.”

Cerebras, on the day Nvidia lost its CEO: “Hold my beer.”

Cerebras picked a hell of a day to finally have a good day.

The maker of the world’s biggest chip (think: the size of a dinner plate) beat on revenue, guided way above expectations, and announced that Microsoft is now a customer. Shares popped 17% after hours.

Back in 2024, we told Cerebras its numbers ($136M in sales for the first half of the year) were rookie numbers. Consider them pumped. Core revenue hit $230.9M in one quarter, vs. the $214.7M the Street expected, up 70% year over year. Adjusted EPS came in at 12 cents vs. an expected 14-cent loss. And its Q4 guide ($310-330M in revenue, 47-49% gross margins) made analysts’ $271M and 42.1% estimates look like a bad use of an Ivy League education.

The only blemishes are that growth slowed from 103% last quarter, and Cerebras expects revenue to triple in 2027 to ~$2.85B, which is somehow still a hair below the $2.92B the Street penciled in. Tough crowd.

As for Microsoft, Satya Nadella has found another shiny new toy to throw his money at. Per CEO Andrew Feldman, the deal was signed in October, and “revenue begins to show up in Q1 ‘27.” No terms yet. That’s three hyperscalers in about six months, after Amazon and Oracle. Microsoft, of course, still buys Nvidia chips by the truckload and makes its own Maia chips. These hoes hyperscalers ain’t loyal.

It also gives Cerebras a big customer not named Sam. OpenAI makes up most of its $26.1B backlog, and that contract is running behind schedule. Feldman (who pleaded guilty to circumventing accounting controls back in 2007) swears that’s “exclusively land, power, shell,” meaning the data centers aren’t built yet. Trust me, bro. Oh, and Cerebras says it’s “evaluating its financing options” (read: possibly yeeting more stock) despite sitting on $7.8B in cash.

Not that shareholders need more pain. After pulling its first IPO attempt in 2025, Cerebras went public in May at $185 and opened at $350. Then came a June margin warning, the lock-up expiring (read: insiders finally got to sell), and a report that OpenAI’s newest model was running on Nvidia instead. Shares closed Thursday at $97.75, about 47% below the IPO price. 

Annnnd it’s gone.

Feldman, meanwhile, told CNBC that long lead times and pricier GPUs “create opportunity for us.” Translation: Cerebras is out here pissing on Nvidia’s grave. On the day its CEO quit, no less. #savage. 

Generational run, incoming? Place your bets accordingly, friends.

Until next time! 

At the time of publishing, Stocks.News holds positions in Microsoft as mentioned in the article.