On June 24, Cerebras Systems fell 11.35% in pre-market trading, trading at $201.07/share, with turnover of approximately $1.101 million. The decline was triggered by the company's first quarterly earnings report since its IPO, released after market close on June 23.

The report showed Q1 revenue of $193.4 million, up 94% year-over-year, beating estimates of $181.2 million, while non-GAAP EPS of -$0.04 significantly outperformed the expected loss of $0.16. However, the company guided Q2 core gross margin of just 36% to 38%, far below industry leader NVIDIA's profitability levels. Full-year revenue guidance of $855 million to $865 million, representing approximately 69% growth, also failed to satisfy elevated market expectations for the self-proclaimed NVIDIA challenger.

Management noted that data center space constraints are forcing the company to lease back some of its own systems from customers, which will pressure margins this year. CEO Andrew Feldman confirmed OpenAI's GPT-5.4 is running on Cerebras hardware, with GPT-5.5 integration underway. Despite strong top-line momentum, investors chose to take profits as the low margin profile raised doubts about the commercial viability of Cerebras's AI chip business model.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)