Cerebras earnings on deck: Here's what to expect

Summary

CNBC's Kristina Partsinevelos previews Cerebras Systems' first public company earnings, discussing revenue expectations, margin pressure from capacity build-out, TSMC supply risks, and heavy customer concentration with OpenAI.

• Cerebras is a newly public AI chip company betting on inference with a large custom chip.
• The stock is down about 25% from its first-day close.
• Wall Street expects $180 million in revenue, more than double last year.
• Mid-capacity build-out is expected to weigh on margins before easing as infrastructure comes online.
• TSMC is the sole chip supplier, and supply constraints are a key risk for Cerebras.
• Customer concentration is high with OpenAI as the primary backlog, and AWS deal details are pending.
• The earnings report is viewed as a test of execution and long-term road map rather than just quarterly results.