What happened
AI chipmaker Cerebras reported its third-quarter results, beating analyst estimates and lifting its full-year outlook. According to Reuters, Cerebras now expects core revenue of $940 million to $960 million this year, up from its August forecast of $880-890 million.
Microsoft joins as a cloud customer
The company said it has added Microsoft to its roster of cloud customers. The move matters because it puts Cerebras chips into the infrastructure of a major cloud provider.
Market reaction
Cerebras shares rose about 17% in after-hours trading following the news, driven by both the earnings beat and the raised forecast.
Why it matters
Cerebras is one of the names closely watched by those seeking alternatives in an AI chip market dominated by NVIDIA. Landing a major cloud provider like Microsoft as a customer could strengthen its position in the infrastructure market.
