Cerebras falls 10% on shrinking margin forecast
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- Cerebras reported Q1 revenue of $193.4M (up 92% YoY) and a narrower net loss of $14M, but its stock fell 10% after forecasting Q2 core gross margin shrinking to 36-38% from 46.5% in Q1
- Full-year core revenue guidance came in at $855.5M–$865M (69% growth at midpoint), with Q2 core revenue projected at $914M
- Cerebras's May IPO raised over $6B — the largest U.S. tech IPO since Uber's 2019 debut — pricing at $185, opening at $350, closing day one at $311.07, with shares now down 28% at $226.72
- OpenAI signed a $20B+ deal for Cerebras computing power, and Cerebras said its chips will go inside Amazon Web Services data centers
- Mizuho noted in a June 8 client note that Cerebras packs many times more SRAM memory than Google's latest TPU or Nvidia's Groq 3 LPU
Why it matters: Investors punished Cerebras despite 92% revenue growth because the company warned gross margins would compress to 36-38% from 46.5%, signaling rising costs as it scales to fulfill a $20B+ OpenAI compute deal and AWS deployments — making the Nvidia challenger's path to profitability murkier even as top-line growth accelerates.
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