Cerebras Systems’ stock plummeted 14% after its second post-IPO earnings report, despite the company raising its full-year guidance and its CEO, Andrew Feldman, highlighting “through the roof” AI demand. The chipmaker missed Q2 revenue estimates but beat on adjusted loss per share, attributing a significant net loss to stock-compensation costs. Positioned as a key competitor to Nvidia in specialized AI tasks, Cerebras continues to expand its partnerships and product offerings.
Cerebras Systems, a promising challenger in the artificial intelligence chip market, saw its stock tumble approximately 14% in extended trading following its second earnings report since going public in May. This downturn occurred despite the company raising its full-year guidance and CEO Andrew Feldman proclaiming that demand for AI is "through the roof."
The chipmaker, which competes with industry giants like Nvidia for specialized AI tasks, reported mixed results for its second quarter against LSEG consensus estimates:
- Revenue: $180 million, falling short of the $194 million expected.
- Loss per share: 5 cents adjusted, significantly better than the 17 cents expected loss.
Looking ahead, Cerebras expects core revenue between $214 million and $216 million for the current quarter. The company also elevated its full-year outlook, now anticipating core revenue in the range of $880 million to $890 million, an increase from the previous forecast of $855 million to $865 million. The reported $180 million Q2 sales figure represents total revenue, while core revenue, including "pass-through revenue," stood at $210 million.
Despite positive guidance, the company recorded a net loss of $450.5 million, a stark contrast to the $309.5 million profit, or $1.91 per share, reported a year prior. A substantial portion of this loss, $386.6 million, is attributed to stock-compensation costs.
CEO Andrew Feldman emphasized the booming market for AI, noting that companies are willing to pay a premium for Cerebras' specialty inference chips, particularly for applications requiring "low latency" or rapid responses. Feldman highlighted that the company's core gross margin is projected to expand to between 38% and 40% in the current quarter, a positive development addressing investor concerns.
Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks after the company's initial public offering at the Nasdaq MarketSite in New York on May 14, 2026. (Michael Nagle | Bloomberg | Getty Images)
Cerebras made its public debut on the Nasdaq in May, riding the wave of investor enthusiasm for semiconductors crucial to running AI models. Its initial offering was priced at $185, raising $6.4 billion. Though the stock peaked shortly after its IPO, it closed Wednesday at $262.06, still a robust 42% above its initial offering price.
The company also boasts $25.4 billion in remaining performance obligations, signaling "extraordinary future demand." Feldman projects a tripling of revenue in the next fiscal year, anticipating greater efficiency and better pricing on components as Cerebras scales up its operations.
In recent weeks, Cerebras has forged a partnership with Nvidia rival Advanced Micro Devices (AMD), with products expected to enter production later this year. Furthermore, the company announced that OpenAI, the creator of advanced AI models, can utilize Cerebras chips to power its latest model, GPT 5.6 Sol. Its cloud access service generated $126 million in revenue during the June quarter.
WATCH: Cerebras sees OpenAI's chip competing with other GPUs
