Cerebras slumps as mixed quarterly results test AI growth narrative

Aug 13 : Cerebras Systems slumped over 18 per cent premarket on Thursday after it missed key estimates despite soaring cloud revenue, raising doubts about the ability of its AI chips to challenge Nvidia.Expectations were high for AI-linked companies including Cerebras and networking equipment maker Cisco, given the strong run-up in shares driven by Big Tech's ballooning spending, set to cross more than $740 billion for this year.Here are some details: • Cerebras, in its second earnings report as a public company, offered a mixed picture as it increasingly derived revenue from cloud computing rather than its AI chips. • The AI chips business had helped position Cerebras as a challenger to Nvidia and fueled a 41 per cent rise in shares from the IPO price of $185.• The Sunnyvale, California-b