AI chipmaker Cerebras Systems’ stock plunges, despite posting solid earnings and guidance
Chipmaker Cerebras Systems Inc. boosted its full-year guidance after beating expectations on earnings and “core” revenue as it published its second-quarter results today, but its stock tumbled more than 17% in extended trading. The company reported an adjusted loss of 5 cents per share, easily beating Wall Street’s forecast of an adjusted loss of 17 […] The post AI chipmaker Cerebras Systems’…
Cerebras Systems reported strong earnings for the second quarter, but its stock price fell more than 17% in after-hours trading. The company beat earnings expectations with an adjusted loss per share of 5 cents, compared to the forecasted 17 cents. Revenue was $180 million, below the predicted $194 million. However, Cerebras uses a unique revenue metric that accounts for certain irregularities, including pass-through revenue and the amortization of stock warrants.
The firm reported a core revenue of $210 million, up 50% from last year, surpassing Wall Street's expectation. Looking ahead, Cerebras anticipates core revenue between $214 million and $216 million for the current quarter and a full-year outlook of $880 million to $890 million. CEO Andrew Feldman stated that demand for AI is soaring, and companies are willing to pay for the company's specialized inference chips.
He highlighted that Cerebras is challenging industry leader Nvidia in low-latency AI tasks. Despite the stock decline, Feldman remains optimistic, citing a steady order backlog and growing margins as positive indicators.
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