Cerebras drops 17% after weaker 2026 margin outlook rattles investors
What's new: The AI chipmaker guided core gross margin to 38%-41% for the year, down from 47% in the first quarter.
Cerebras Systems shares fell 17% on Wednesday after the newly public AI chipmaker projected lower core gross margins for 2026, unsettling investors despite upbeat analyst revisions. The company said full-year core gross margin, excluding customer warrants and data center pass-through revenue, should come in at 38% to 41%, versus 47% in the first quarter. CEO Andrew Feldman said investors misread the outlook and pointed to equipment the company will rent back from one of its largest customers. The stock also faced pressure from an upcoming lock-up schedule that could free about 28 million Class A shares for trading after the earnings release.