Cerebras hardware sales fall 23% as cloud revenue nearly triples
Cerebras Systems Inc. fell in after-hours trading after the chipmaker reported a decline in hardware revenue, suggesting the recently public company is making slow progress selling computers based on its new chip designs. The company said Wednesday that hardware sales fell 23% from a year earlier to $54.1 million. The bright spot in the report was its cloud business, which provides AI computing capacity using Cerebras technology. Revenue from the unit surged nearly threefold to $126 million. The results presented investors with a mixed picture. Cerebras shares have risen 42% since the company’s initial public offering in May. The company has positioned itself as a challenger to Nvidia in AI chips, but cloud computing is now its largest source of revenue. Cerebras shares fell about 14% after the results were released.
The company said Wednesday that hardware sales fell 23% from a year earlier to $54.1 million. The bright spot in the report was its cloud business, which provides AI computing capacity using Cerebras technology. Revenue from the unit surged nearly threefold to $126 million.
The results presented investors with a mixed picture. Cerebras shares have risen 42% since the company’s initial public offering in May. The company has positioned itself as a challenger to Nvidia in AI chips, but cloud computing is now its largest source of revenue.
Cerebras shares fell about 14% after the results were released.