Cerebras Systems Tumbles After Q2 Revenue Miss Despite Raised Full-Year Guidance

Cerebras Systems (NASDAQ: CBRS) whipsawed sharply on Wednesday and Thursday after its second-quarter results disappointed Wall Street on the top line. The stock surged 11.6% during the regular session to $262.06, then reversed course, dropping roughly 18% in extended trading and sliding further to around $220.31 in Thursday premarket trading, a decline of about 15.9% from the prior close. The AI chipmaker posted Q2 revenue of $180.1 million, up 74% year-over-year but below the $194 million analyst consensus.

On the bottom line, Cerebras reported a narrower-than-expected loss of 5 cents per share. The company also raised its full-year guidance, a move that did not offset the revenue shortfall in investors' eyes. Mizuho lowered its price target on the stock, citing margin pressure, while Morgan Stanley expressed a more constructive view, saying the company is poised to see further upside from expanding capacity and robust AI demand.

CEO Andrew Feldman defended the quarter, telling CNBC 'We are pretty proud of the results.' Multiple analysts revised their forecasts following the print, and options volume in CBRS was elevated heading into Thursday's session.