Cerebras Shares Fall Below $185 IPO Price as Investors Focus on Margin Slump
Shares of Cerebras Systems fell below their $185 IPO price, extending their selloff to about 19% after the AI chipmaker disclosed weak gross margin expectations. The stock slipped below the initial public offering level as investors weighed the disappointing profitability forecast against a strong first-quarter revenue beat and a record-breaking $6.4 billion capital raise.
Cerebras reported Q1 core revenue of $191.3 million, rising 92% year over year and topping estimates, while full-year guidance was raised to $855 million-$865 million. However, the company projected second-quarter gross margins of 36% to 38%, down significantly from 46.5% in Q1. CEO Andrew Feldman told CNBC the margin forecast was misunderstood, adding that the chipmaker secured a multi-year, $20 billion agreement with OpenAI for 750 megawatts of inference compute capacity alongside a new partnership with Amazon Web Services. Following its May 14 debut at $350, Cerebras shares are now down roughly 44%.
From the sources (21 posts)
@tradfi*CEREBRAS SYSTEMS - ANNOUNCES MULTI-YEAR DEAL WITH OPENAI FOR 750MW VALUED AT OVER $20 BLN - SEC FILING $CBRS
@tradfi*CEREBRAS SYSTEMS 1Q REV. $193.4M, EST. $181.4M $CBRS
@alphasenseinc$CBRS Earnings: - GAAP quarterly revenue of $193.4 million; record core revenue of $191.3 million, up 92% from a year ago - GAAP net loss of $14.0 million - GAAP loss from operations of $15.0 million - Hardware revenue of $110.6 million, u
@wallstengine$CBRS Q1 revenue rose 94% YoY to $193.4M, beating $181.4M est. FY26 revenue guide: $855M-$865M vs. $824.8M est. Cerebras also announced a $20B+ OpenAI deal for 750MW of inference compute and a multi-year AWS inference partnership. https:/
@firstsquawkEREBRAS SYSTEMS REPORTS Q1 2026 CORE REVENUE OF $191.3 MILLION, UP 92% Y/Y, DRIVEN BY HARDWARE REVENUE OF $111.6 MILLION (+60%) AND CLOUD REVENUE OF $79.8 MILLION (+167%).
@firstsquawkCEREBRAS FORECASTS Q2 2026 CORE REVENUE OF ABOUT $194 MILLION (+88% Y/Y) AND RAISES ITS FY2026 CORE REVENUE OUTLOOK TO $855-$865 MILLION (+69%), WITH CORE GROSS MARGINS EXPECTED BETWEEN 38%-41%.
@firstsquawkCEREBRAS ALSO ANNOUNCED A MULTI-YEAR 750MW DEAL WITH OpenAI VALUED AT MORE THAN $20 BILLION, MARKING ONE OF THE LARGEST AI INFRASTRUCTURE AGREEMENTS DISCLOSED TO DATE.
@stocksavvyshay$CBRS Q1 EARNINGS • Revenue $193M vs Est. $181M (+92% YoY) • EBITDA $13M vs. Est. ($5M) FY26 Outlook • Revenue $860M vs Est. $830M (+69% YoY) • Gross Margin 40% vs. Est. 44% The company also announced a $20B+ OpenAI deal for 750MW of cap
@cnbcCerebras reports 92% revenue growth in chipmaker's first earnings report since IPO
@negligible_cap*CEREBRAS SYSTEMS SEES FY REV. $855M TO $865M, EST. $824.8M *CEREBRAS SYSTEMS SEES 2Q REV. ABOUT $194.0M, EST. $173.3M $CBRS down 9%+ on earnings. Guide seems pretty solid but markets unamused.
@businessCerebras, the newly public chipmaker competing with Nvidia in AI components, issued an annual sales forecast that disappointed investors hoping for faster market gains
@stocksavvyshay$CBRS had a good print but calling it an “Nvidia challenger” still feels aggressive with FY26 growth guided at 69%. $NVDA is ~425x larger on revenue, growing faster and doing it with 64% operating margins. Remind me why Nvidia should trad
@techmemeCerebras reports Q1 revenue up 94% YoY to $193.4M, net loss down 41% to $14M, and forecasts core gross margin to shrink in Q2; CBRS drops 8%+ after hours (@jordannovet / CNBC) (Visit Techmeme dot com for the link and full context!)
@stockmktnewzCerebras $CBRS just announced a multiyear deal with OpenAI
@vestexchange$CBRS post-earnings repricing has the stock down around 10% premarket after Q1 revenue rose 94% YoY to $193.4M and FY26 core revenue guidance came in at $855M-$865M. The main earnings debate is margin guidance, with Q2 core gross margin ex
@yahoofinance$CBRS plummets after warning in its Q1 earnings that profit margins would decline through the rest of the year. Explore more premium news and analysis in AlphaSpace:
@negligible_cap$CBRS down 14% today following it's first earnings print, now down 44% from it’s IPO trade date. Cerebras IPO was priced at $185 / share and opened for trade at $350 on May 14.
@zerohedgeCerebras Plunges To Post-IPO Low On Striking Admission: The US Has A Dire Shortage Of Operating Data Centers
@cnbcCerebras CEO says margin forecast was 'misunderstood' as stock plummets after earnings
@stocksavvyshay$CBRS DOWN OVER 16% 😳
@zerohedge*CEREBRAS SHARES EXTEND DECLINE TO 19% TO DROP BELOW IPO PRICE