Cerebras shares plunge 16% after Q2 revenue miss

Published Aug 12, 08:07 PM UTC

AI chip designer Cerebras Systems saw its shares drop 16% in extended trading on August 12, 2026, after reporting second-quarter revenue of $180.11 million, missing analyst estimates of $194.23 million. The miss, despite a 74.3% year-over-year revenue increase, suggests Wall Street is quick to punish richly valued AI stocks for any slip. Adjusted gross margin fell to 40.6% from 46.5% in the prior quarter due to higher costs for rented computing capacity. However, Cerebras raised its full-year revenue forecast to $880-890 million and gross margin guidance to 41-43%. Cloud revenue surged to $126 million, while hardware sales dropped to $54.1 million. CEO Andrew Feldman highlighted the company's on-chip memory design as a competitive advantage against Nvidia, especially amid rising HBM memory prices. Cerebras also reiterated its $20 billion multiyear deal to supply AI compute to OpenAI.