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Cerebras Surges After Hours on Microsoft Deal

Cerebras surged in after-hours trading yesterday on better-than-expected quarterly revenue, strong guidance and a new Microsoft deal, even though its regular session had ended lower.

Cerebras (NASDAQ: CBRS), the AI chip designer that competes with Nvidia (NASDAQ: NVDA), jumped about 17% in after-hours trading yesterday after beating third-quarter revenue forecasts and announcing a Microsoft deal. The results were published after the US market closed.

The gain came after a weak regular session. Cerebras closed at $97.75, down 3.29% from $101.08, on a day Nvidia fell about 4% after its chief executive resigned. The close is about 63% below the August closing high of $262.06 and 20% above the low of $81.71 on the 5th of November.

CBRS.US

Core revenue, the company’s own measure that excludes certain items, was $230.9M, up 70% from $135.7M a year earlier. That beat the $214.7M LSEG consensus. Adjusted earnings were 12 cents a share against an expected loss of 14 cents.

Fourth-quarter revenue guidance of $310M to $330M compares with a consensus of $271M. The agreement with Microsoft (NASDAQ: MSFT), a giant cloud provider, was signed in October and adds to existing partners Amazon and Oracle. Andrew Feldman, Cerebras co-founder and chief executive, said:

We believe revenue begins to show up in Q1 ’27,

Andrew Feldman, Cerebras

Line chart of Cerebras daily closing share price from August to November 2026, well below the August high before results
Cerebras daily close, 3 August to 12 November 2026; results came after the close.

Growth has slowed from 103% in the second quarter. Cerebras also expects 2027 revenue to triple, which implies about $2.85B, short of the $2.92B consensus. Benzinga reported a GAAP loss of 67 cents a share.

The Microsoft deal looks like diversification beyond OpenAI, a major existing customer. Feldman said long lead times and higher costs for GPUs, the rival graphics chips, create an opening for Cerebras.

The shares are down about 47% since their May Nasdaq debut. The US regular session opens at 2.30pm UK time today, so the first trade may not match the after-hours move.

Asktraders News Team
Asktraders News Team
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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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