Cerebras stock plummets after mixed quarterly results tests AI narrative

AI firm Cerebras Systems saw its stock fall as much as 17% in after-hours trading on Wednesday even with the chipmaker beating Wall Street’s expectations on most metrics and raising its full-year revenue forecast.

The reaction is important for investors in the AI infrastructure industry, as it helps in assessing if top AI infrastructure names can keep justifying steep valuations.

Cerebras (NASDAQ: CBRS) posted core revenue of $210 million for Q2, more than double the figure from the same quarter a year ago and ahead of the $191 million analysts had expected, according to CNBC figures cited by Quartz.

The company lost 5 cents a share on an adjusted basis, way smaller than the expected loss of 17 cents a share. Its adjusted operating loss of $34 million was also well under the $63 million estimate Barron’s penciled in.

GAAP total revenue hit $180.1 million, a 74% increase from one year ago.

Cerebras’ wafer engine sees stumble

Cerebras is known for its Wafer-Scale Engine, a design that keeps an entire 300-millimeter silicon wafer intact as one enormous processor built for AI and scientific workloads. The hardware earned the company its “Nvidia rival” label, however, in the second quarter, it took a beating.

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