Shares of Cerebras Systems (NASDAQ:CBRS) are down roughly 13% in midday trading on Thursday, changing hands near $225 after closing Wednesday at $262. The move stands out because most of the AI hardware complex is higher, with the sector outperforming the broader market average.
Raise and Beat on Core, Miss on the Headline
Cerebras reported fiscal Q2 2026 results after the close Wednesday. GAAP revenue came in at $180.11 million, up 74% year over year but missing consensus of $193.55 million by 7%. GAAP EPS of -$2.98 looks catastrophic against a -$0.18 estimate, but the headline is heavily distorted by $377.0 million of stock-based compensation and $44.3 million of customer warrant amortization. Strip those out and core revenue was $209.87 million, up 103%, with core gross margin of 40.6% and cloud revenue up 281% to $125.99 million.
Management also raised full-year 2026 core revenue guidance to $880 to $890 million from a prior $855 to $865 million, guided Q3 to $214 to $216 million, and disclosed remaining performance obligations of $25.4 billion with plans to more than triple revenue in 2027. CEO Andrew Feldman said, “This was an outstanding quarter for Cerebras. Core revenue more than doubled to $210 million, and our cloud business nearly quadrupled year-over-year.” The market is punishing the consensus revenue miss, the GAAP optics, and a valuation that had run hot into the report. Cerebras IPO’d in May 2026 at $185 and had ripped higher since.
The Rest of the AI Complex Is Bid
Everything else in the AI logic and infrastructure trade is higher. Intel (NASDAQ:INTC | INTC Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) are riding broad enthusiasm for the AI trade rather than any single company catalyst today.
In company-specific news, AMD is preparing a $5 billion debt offering while Intel received positive analyst commentary. UBS issued a note on Intel’s $20 billion equity raise that framed it as “removing an overhang.”
There’s also positive read-through from server companies. Yesterday Super Micro Computer (NASDAQ:SMCI) lit up the sector after guiding fiscal 2027 revenue to $65 billion to $72 billion versus Street expectations of $53.3 billion. Lenovo added fuel this morning, reporting April to June revenue of $26.94 billion, up 43% year over year, with an AI server pipeline that surged to $54 billion, up 157% sequentially.
The read-through is spreading across memory, semiconductor equipment, interconnect, and AI server names, with Micron bid on memory pricing strength, Applied Materials participating on equipment demand, Marvell Technology one of the day’s leaders on interconnect, and Dell Technologies catching an AI server tailwind after Morgan Stanley upgraded its US IT hardware view to In-Line from Cautious.
Today’s Move vs. Year to Date
| Ticker | Today | Year to Date |
|---|---|---|
| CBRS | -14% | N/A (IPO May 2026) |
| INTC | +6% | +174% |
| AMD | +2% | +126% |
| MRVL | +5% | +156% |
| SMCI | +11% | +28% |
| MU | +6% | +219% |
| DELL | +4% | +288% |
| AMAT | +2% | +114% |
Across the broader technology and AI infrastructure space, stocks are broadly rallying today witht he exception of Cerebras. SanDisk hosted its investor day today and forecast non-GAAP gross margins at 80% between 2028 and 2030. That’s extremely bullish for memory companies, although its an unwelcome prediction for companies like Apple bearing the brunt of memory costs.
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