- Cerebras Systems stock fell 15% after-hours despite raising its full-year outlook, as hardware revenue dropped 23% to $54.1 million.
- Cloud revenue skyrocketed nearly fourfold to $126 million, offsetting the hardware decline and pushing total sales up 74% year-over-year to $180.1 million.
- The company now expects core revenue between $880 million and $890 million for the full year and forecasts revenue to more than triple by 2027.
Cerebras Systems (CBRS) stock plunged 15% after-hours Wednesday following a mixed Q2 report that revealed a sharp decline in hardware sales despite surging cloud demand. The chipmaker, often touted as a rival to NVIDIA, saw hardware revenue slide 23% to $54.1 million due to what CEO Andrew Feldman called “lumpy” customer demand and data center space constraints.
However, revenue from the company’s cloud business skyrocketed nearly fourfold to $126 million, fueled by a broader shortage in AI compute capacity. Consequently, total sales rose 74% year-over-year to $180.1 million, though Cerebras posted a net loss of $450.5 million driven by $386.6 million in stock-based compensation costs.
The company’s Wafer-Scale Engine technology keeps an entire 300 mm silicon wafer intact as a single massive processor, delivering computing performance tailored for AI and scientific computing. Cerebras is attempting to carve out market share against Nvidia through partnerships with Advanced Micro Devices and integration agreements with OpenAI.
Feldman noted that robust demand for low-latency inference processors enables premium pricing to push future margins higher. For the third quarter, Cerebras expects core revenue between $214 million and $216 million, outpacing analyst consensus of roughly $212 million, according to data.
Meanwhile, the company upgraded its full-year 2026 revenue guidance to between $880 million and $890 million, surpassing analyst expectations of $867.6 million. Cerebras plans to more than triple revenue in fiscal year 2027 as production scales and component costs decrease. Retail sentiment on Stocktwits remained ‘extremely bullish’ with high message volumes, though some users noted a disconnect between market cap and earnings.
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