Cerebras Drops 8% After Forecasting Q2 Margin Slide to 36%-38%
Updated
Updated · CNBC · Jun 23
Cerebras Drops 8% After Forecasting Q2 Margin Slide to 36%-38%
3 articles · Updated · CNBC · Jun 23
Summary
Cerebras shares fell 8% in extended trading after the newly public AI chipmaker said second-quarter core gross margin will shrink to 36%-38% from 46.5% in the first quarter.
Revenue still rose 92% to $193.4 million in its first post-IPO earnings report, while net loss narrowed to $14 million from $23.9 million a year earlier.
Management said second-quarter core revenue should climb 88% year over year to $914 million, and full-year core revenue will reach $855.5 million to $865 million—about 69% growth at the midpoint.
The selloff adds to a volatile start on Nasdaq: after pricing its May IPO at $185 and closing its debut at $311.07, the stock had already slid 28% to $226.72 by Tuesday's close.
Cerebras is trying to carve out AI infrastructure share from Nvidia, backed by AWS deployment plans and a computing deal with OpenAI worth more than $20 billion.
With AI facing a copyright storm, can Cerebras outrun the legal risks threatening its biggest customers?
Can Cerebras's giant chip shatter Nvidia's dominance, or is its massive OpenAI deal a fatal dependency?
Cerebras Systems Q1 2026 Earnings: $15M Operating Loss, High Valuation, and Customer Concentration Challenge Market Optimism
Overview
Cerebras Systems' Q1 2026 report showed both business progress and financial challenges, with a GAAP operating loss of $15 million and a net loss of $14 million. Despite some underlying growth, the market reacted negatively, sending shares down 7% after the announcement and leaving the stock about 40% below its post-IPO peak. High investor expectations and a lofty valuation meant that even strong technology demonstrations, like Meta’s Llama-4 outperforming Nvidia on Cerebras hardware, failed to boost the stock. This highlights how profitability concerns and unmet expectations have driven recent market disappointment.