Chip firm Cerebras slumps on weak FY26 margin forecast
BUZZ-Chip firm Cerebras slumps on weak FY26 margin forecast ** Shares of chip designer Cerebras Systems CBRS.O fall 10.9% to $201.93 in premarket trading after its debut report as a public co included full-year profit margin forecast that lags rivals
** Co forecast FY26 adjusted gross margins of 38%-41%, down from 47% in Q1 and below rivals including Nvidia NVDA.O and Advanced Micro Devices AMD.O
** Weak forecast overshadows a strong Q2 sales outlook; co expects adjusted sales of $194 mln vs estimates of $174.34 mln, per LSEG data
** "While the need to build out cloud capacity has some risks, we see evidence in these numbers that the company has been conservative in projecting the ramp," Morgan Stanley says
** Cerebras, which raised $5.55 billion in its May IPO, focuses on inference, the process by which AI systems respond to user queries
** Ten of 11 analysts rate stock "buy" or "strong buy", one rates it "hold", per LSEG data
(Reporting by Kanchana Chakravarty in Bengaluru)
Recent news on Cerebras Systems
See all newsCerebras falls after Culper reveals short position
Brief: Culper Research Says We Are Short Cerebras Systems
Oracle gains on expanded AI chip partnerships, cloud capacity push
Brief: Oracle says Google TPUs, Cerebras fast inference to be available on its cloud in 2027
Oracle expands chip supply deal with Nvidia, adds Google and Cerebras offerings