Breaking

Cerebras Shares Post Record Two-Day Slide on Gross-Margin Outlook

June 25, 2026 at 11:06 EDT

Infra & Chips
Funding & M&A

Cerebras Systems, the maker of wafer-scale AI chips, saw its stock (CBRS) post one of its largest two-day declines on June 24-25 after its first post-IPO results pointed to a full-year 2026 gross-margin outlook that fell short of investor expectations. The shares fell more than 12% on June 25, sliding below their IPO price, as reported by Bloomberg.

Q1 FY2026 Results · Cerebras Systems (CBRS)

Beat on revenue, missed on the outlook — and the stock fell ~14%

The AI chipmaker grew Q1 core revenue 92% YoY, yet its full-year 2026 guidance of $855M–$865M underwhelmed investors. Margin compression and doubts over market-share gains drove one of its steepest declines on record.

+92%

Q1 core revenue YoY ($191.3M)

+69%

FY2026 guidance growth (midpoint)

−14%

Stock decline over two sessions

Core gross margin is set to compress

What spooked the market: profitability heading down from Q1's 46.5%.

46.5%

Q1 actual

36–38%

Q2 guidance

38–41%

FY guidance

The technology bet: Wafer-Scale Engine vs. NVIDIA

Cerebras's own comparison of its CS-3 (WSE-3, 44GB+ on-chip SRAM) against NVIDIA's DGX B200 Blackwell:

21×

faster (claimed)

⅓

the cost and power

2,314

tokens/sec on Llama 3.3 70B

STRENGTHS

$20B+ multi-year, 750MW deal with OpenAI
Pharma firm cut 2-week training to ~2 days
Strong token-generation throughput on inference
~$5.5B IPO, closed near $311 on day one

CONCERNS

Guidance seen as weak market-share signal vs. rivals
Single WSE-3 deployment runs $2M–$3M
Better suited to training; cost-competitiveness on inference questioned
Context-length scaling remains a challenge

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