Cerebras raises annual targets on strong AI chip demand

Cerebras Systems raised its annual revenue and gross margin forecasts on Wednesday, buoyed by robust demand for its chips from companies ramping up data-center capacity to power AI services.

Still, its shares were down more than 14% in extended trading after closing up 11.6% in the regular session. The stock has gained 15.5% ‌week-to-date.

The chip ⁠designer is ⁠banking on growing demand for inference, the data crunching that occurs when a user queries a chatbot, as it seeks to challenge Nvidia’s dominance in the AI processor market.