Cerebras Systems forecasts Q2 gross margins of 36-38%, below prior levels, spooking investors despite a new OpenAI deal.
Cerebras Systems (CBRS) fell 10.5% in after-hours trading Tuesday after projecting fiscal second-quarter gross margins of 36-38%, down from earlier levels. The decline overshadowed news of a partnership with OpenAI, highlighting investor sensitivity to profitability metrics.
The company had previously reported higher gross margins, though specific prior figures were not disclosed. Analysts had anticipated stronger margins amid rising demand for AI infrastructure, making the revised outlook a key concern for market participants.
Shares reacted sharply to the margin guidance, reflecting broader market scrutiny of AI hardware providers’ profitability as competition intensifies.