Cerebras Systems' stock plummeted 14.98% during intraday trading on Wednesday, as investors reacted negatively to the company's first quarterly earnings report since its initial public offering.

The AI chipmaker forecast full-year 2026 adjusted gross margins of 38% to 41%, a significant decline from the 47% margin achieved in the first quarter and far below the profitability levels of rivals like Nvidia and Advanced Micro Devices. This weak margin outlook overshadowed strong revenue growth and a multi-billion dollar deal with OpenAI.

Analysts noted that data center capacity constraints are forcing Cerebras to rent back its own systems from customers to meet short-term demand, which will pressure margins throughout the year. The disappointing guidance came despite the company reporting better-than-expected quarterly results and securing major partnerships, highlighting investor concerns about the commercial viability of its AI chip business model.