Cerebras Systems slumped over 18% premarket on Thursday after it missed key estimates despite soaring cloud revenue, raising doubts about the ability of its AI chips to challenge Nvidia.
Quarterly Results
The Sunnyvale, California-based company’s cloud business roughly quadrupled to $126 million, versus the year-ago quarter. However, its hardware sales, including AI chips, declined to $54.1 million from $70.3 million a year ago.
Second-quarter adjusted gross margin fell to 40.6% from 46.5% in the prior quarter, while revenue missed analysts’ estimates despite a higher annual outlook.
Industry Impact
Separately, shares of Cisco Systems fell over 6% as its outlook fell short of lofty expectations tied to its rise as a beneficiary of the AI data center buildout. The stock has gained more than 60% this year.
Cisco expects $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
