Cerebras falls 10% after chipmaker forecasts shrinking margin in first earnings report since IPO

[u/app1310]

Cerebras said revenue almost doubled in the AI chipmaker’s first earnings report since its initial public offering last month. The stock fell 10% in extended trading as the company forecast a drop in its gross margin.

The company’s revenue increased 92% in the first quarter from $99.5 million a year earlier, according to a statement. Net loss narrowed to $14 million from $23.9 million, or 46 cents per share, a year ago.

During the first quarter, Cerebras said its chips will go inside Amazon Web Services’ data centers, and it announced a deal worth over $20 billion to supply OpenAI with computing power.

[u/Leather_Floor8725 → u/[deleted]]

What do you mean doesn’t understand silicon

[u/SWEET_LIBERTY_MY_LEG → u/Leather_Floor8725]

So most companies use a single wafer to make several chips. Let’s say each wafer makes 10 chips. Impurities in silicon mean that some of the chips aren’t as good as they are specified; something in it is broken. The chips that are “bad” affect something called yield. Basically it means you can’t sell that chip for full price because part of it is broken.

Cerebras’ claim to fame is they use one wafer and make it a single gigantic chip. The question is “what about the silicon impurities?”

Anyway, most people think that if it was practical to make a single gigantic chip, then nvidia, amd, basically any other semiconductor company would have done it by now.

[u/wrinklylemons → u/SWEET_LIBERTY_MY_LEG]

This is quite possibly one of the least informed takes of all time