Shares of AI chipmaker Cerebras sink following first earnings report since going public
Chipmaker Cerebras Systems Inc. delivered mixed results in its first earnings report since going public last month, beating Wall Street’s revenue projections but falling short on earnings, sending its stock lower after-hours.
The company reported a first-quarter earnings loss before certain costs such as stock compensation of 22 cents per share, trailing the Street’s target of a 16-cent-per-share loss. Revenue for the period jumped 92% from a year ago, to $193 million, ahead of the analyst forecast of $181 million. Meanwhile, the company’s net loss narrowed to $14 million, down from $23.9 million in the same quarter one year ago.
However, investors reacted negatively to a gross margin forecast that revealed the reality of its struggle to surpass artificial intelligence chip leader Nvidia Corp. in key markets.
Cerebras went public in an initial public offering last month that aimed to capitalize on the growing enthusiasm among investors to bet on anyone providing the infrastructure needed to run powerful AI models. After pricing its IPO at $185 per share, its stock opened at $350 per share before closing its first day of trading at $311.07. The company raised more than $6 billion through the offering, but its stock has since declined further, and with today’s 10% after-hours drop, it’s currently trading at about $202 per share.
