US Stock Market Move | Q2 performance fell short of expectations. "NVIDIA Corporation challenger" Cerebras Systems (CBRS.US) opened with a drop of over 15%.

On Thursday, NVIDIA Corporation Challenger Cerebras Systems (CBRS.US) opened with a drop of over 15%, currently reported at $226.20. In the news, the AI chip newcomer Cerebras Systems announced second-quarter results that fell short of expectations. Data shows that the company's Q2 revenue increased by 74% year-on-year to $180.1 million, while analysts had previously expected $194 million; the loss per share was $2.98, compared to the expected loss of $0.17 per share. By business segment, hardware revenue in the second quarter decreased by 23% year-on-year to $54.1 million. This indicates that the startup, which employs an innovative chip design architecture, still faces challenges in the commercialization process. However, revenue from cloud and other services reached a historic high of $126 million, representing a year-on-year growth of 281%. The core gross margin for the second quarter was 41%, an increase of approximately 940 basis points compared to the same period last year. Cerebras CEO Andrew Feldman stated, In terms of the timing of order fulfillment and revenue recognition, the hardware business will exhibit volatility. This is a characteristic of the industry. He added that some customers are currently not prepared to accommodate the data center space required for the new computing systems. Looking ahead, Cerebras expects third-quarter revenue of about $215 million, exceeding analysts' average expectation of $212 million; the expected core gross margin is between 38% and 40%, also higher than the analysts' average expectation of 36%. The company raised its full-year revenue guidance to between $880 million and $890 million, up from the previous expectation of $855 million to $865 million, while analysts generally expected $867.6 million. The company also anticipates a full-year core gross margin of between 41% and 43%.