Cerebras doubled its revenue. The stock fell anyway.
Cerebras nearly doubled its revenue and guided 2026 sales above Wall Street’s estimates. Its stock still fell about 10%. The reason was a margin squeeze, caused not by a shortage of chips but by a shortage of buildings.
Cerebras just learned the price of going public into a mania. On Tuesday the AI chipmaker posted its first results since a blockbuster May listing. Revenue almost doubled. The full-year forecast came in ahead of analysts. And the shares dropped roughly 10% anyway.
The numbers were good. First-quarter revenue hit $193.4m, up 92% on a year earlier, CNBC reported. The net loss narrowed to $14m from $23.9m. Both lines beat what Wall Street had penciled in. Cerebras even guided full-year revenue to between $855m and $865m, comfortably above the $824.8m analysts expected.
So why the sell-off? Because the story investors cared about was not demand. It was margins. And the cause...
Copyright of this story solely belongs to thenextweb.com. To see the full text click HERE
