Cerebras raises annual targets on strong AI chip demand

Aug 12 : 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 7 per cent in extended trading. The stock has gained 15.5 per cent 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.Cerebras' flagship wafer-scale engine (WSE) is a single chip the size of a dinner plate containing trillions of transistors, a design that it says is more efficient than connecting thousands of smaller graphics processors together, as Nvidia does. By placing memory directly on the chip,