Cerebras drops 10% after margin outlook sours in first post-IPO report

Cerebras shares fell 10% in extended trading after the AI chipmaker projected weaker margins in its first earnings report since going public in May. The company reported first-quarter revenue of $193.4 million, up 92% from a year earlier, while its net loss narrowed to $14 million from $23.9 million. Cerebras said second-quarter core gross margin will fall to 36% to 38% from 46.5% in the first quarter. It expects second-quarter core revenue growth of 88% from a year earlier to $914 million and forecast full-year core revenue of $855.5 million to $865 million. Cerebras, which is challenging Nvidia in AI computing and recently struck deals with Amazon Web Services and OpenAI, has seen its shares slide 28% since its Nasdaq debut.