Cerebras Systems (CBRS) shares fell 5.05% in pre-market trading on Tuesday, as investors braced for the AI chip maker's first quarterly report since its initial public offering.

The stock's decline comes ahead of its inaugural earnings release, with analysts noting the company faces a key test. Barron's reported that the stock trades at a high valuation based on elevated expectations, and the first-quarter results could reignite its characteristic volatility. A significant factor is the beginning of non-cash contra-revenue charges related to warrants granted to OpenAI, which will affect reported sales figures.

Further pressure may stem from an upcoming lockup expiration, which will make nearly 13% of IPO shares eligible for sale by insiders and early investors this week, potentially increasing the available float and creating downward pressure on the share price.