Shares of Cerebras Systems (CBRS) surged 7.04% during intraday trading on Wednesday, extending a rally driven by a wave of positive catalysts and heightened expectations for the company’s second-quarter earnings report due after the market close.

The sharp advance was underpinned by a dense cluster of recent developments that have significantly bolstered the AI chip maker’s growth narrative. A multi-year compute contract with OpenAI, valued at over $20 billion and encompassing 750 megawatts of capacity, stands as a major endorsement of Cerebras’ technology. Additionally, a partnership with AMD to build an integrated-chip AI inference platform and a collaboration with CrowdStrike to power AI detection and response on its inference platform have underscored the company’s expanding role in the AI ecosystem. Cerebras has also locked in approximately 215 megawatts of compute capacity and announced plans to invest billions of dollars in expanding European AI infrastructure.

With market consensus projecting revenue to surge 88% year-over-year, the rally reflects growing optimism that Cerebras is successfully capitalizing on the industry-wide shift toward AI inference workloads, positioning itself as a formidable challenger in the semiconductor space.