AI chipmaker Cerebras reports a 47% Q1 gross margin but forecasts 38-41% for the year, sparking investor concerns.
Cerebras Systems shares fell 17% after CEO Andrew Feldman addressed investor confusion over the company’s gross margin guidance. The AI chipmaker reported a 47% gross margin for Q1 but projected 38-41% for the full year, excluding warrant impacts and data center revenues.
Analysts at Mizuho and Wedbush raised estimates following the earnings call, though the narrower margin outlook raised concerns. Feldman stated the guidance aligns with a long-term plan shared during the company’s recent IPO, emphasizing execution over a linear trajectory.
Additionally, 28 million Class A shares held by insiders become eligible for trading post-earnings, potentially adding supply pressure. The staggered lock-up schedule aims to mitigate volatility, though its effectiveness remains uncertain.