Cerebras revenue nearly doubles in first post-IPO earnings report as shares fall

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Cerebras post-IPO earnings surge

Highlights

Cerebras first-quarter revenue rises to $193.4 million as net loss narrows to $14 million, or 22 cents per share, post-IPO.
Cerebras secures $20 billion deal to supply OpenAI, announces upcoming AWS data center installations, and claims chip performance edge over Nvidia and Google.
After raising nearly $6 billion in its May IPO at $185 per share, Cerebras stock falls 28% to close at $226.72 before earnings release.

First-quarter results and growth drivers

Cerebras says in a statement that first-quarter revenue reaches $193.4 million and that its net loss narrows to $14 million from $23.9 million, or 46 cents per share, a year earlier. The company reports a loss per share of 22 cents in the quarter, marking its first earnings report since last month's initial public offering.

The company is benefiting from strong investor interest in infrastructure used to run AI models. Cerebras is positioning itself against Nvidia in part of the AI chip market, while also operating a service that runs AI models through data centers equipped with its own processors.

Mizuho says in a June 8 note to clients that Cerebras holds a performance advantage partly because its chip packs many times more SRAM memory than Google's latest tensor processing unit or the Groq 3 LPU chip that Nvidia announced in March. During the first quarter, Cerebras also says its chips will be installed in Amazon Web Services data centers, and it announces a deal worth more than $20 billion to supply OpenAI with computing power.

IPO momentum and market reaction

Cerebras went public on the Nasdaq in May, giving Wall Street access to a pure-play AI company as demand for AI infrastructure remains high. After pricing its IPO at $185, the stock opened at $350 and closed its first trading session at $311.07.

The shares have since dropped 28% and close at $226.72 on Tuesday before the earnings release. Founded in 2015, Cerebras raises nearly $6 billion in the offering, the most for a U.S. technology company since Uber's market debut in 2019.

Executives are set to discuss the results with analysts on a conference call starting at 5 p.m. ET.

In our earlier coverage of Super Micro Computer (SMCI), we looked at how the company is expanding its edge AI and data center solutions while navigating stock volatility. We also noted Supermicro’s $7 billion equity and equity-linked capital raise, which improved liquidity but introduced potential dilution risk, alongside a technical setup suggesting a defined trading range with key support and resistance levels.

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