Cerebras Systems Inc. Class A Common Stock

Cerebras Systems shares tumbled 7% after semiconductor research firm SemiAnalysis posted on X that OpenAI's newly announced GPT-6.1 Sol Ultrafast tier is running on traditional Nvidia GPUs at a low batch size rather than on Cerebras chips. OpenAI's Ultrafast tier promises token generation speeds up to eight times faster than standard deployments, reaching an estimated 300 tokens per second, a workload requiring the massive memory bandwidth Cerebras built its Wafer-Scale Engine to deliver. The report's focus on low batch size directly challenges Cerebras' architectural advantage, since Nvidia GPUs typically need large batch sizes for peak efficiency while low batch size prioritizes immediate response speed. Analysts immediately questioned whether Cerebras will secure any role in serving the GPT-6.1 Sol Ultrafast model in the future, a blow to near-term investor confidence in the company's growth narrative. Cerebras has yet to issue a public statement confirming or denying its involvement in OpenAI's future infrastructure roadmap.

Shares of chip and AI-related companies were largely mixed on Thursday after Nvidia's fiscal second-quarter results and outlook beat estimates, sending shares of the AI chipmaker nearly 8% higher. Wall Street's major indexes were also in the green, with the Nasdaq Composite rising nearly 1.06%, the S&P 500 climbing about 0.49%, and the Dow gaining around 0.27%. The Philadelphia Semiconductor Index jumped about 1.21%. Nvidia's CEO Jensen Huang defended the chipmaker's growing financial support for the AI ecosystem, saying the risks are low as the company increasingly invests in AI developers and infrastructure. For the period ending July 26, Nvidia earned an adjusted $2.22 per share as revenue soared 105.9% year-over-year to $96.22B, with data center revenue coming in at $89B versus estimates of $85B. Meanwhile, Amazon Web Services and Nvidia expanded their partnership, with AWS deploying 2M additional Nvidia GPUs between 2027 and 2028. Reportedly, Nvidia has agreed to acquire Hugging Face for $12.9B. The Trump administration is considering new tariffs on semiconductors, potentially impacting many goods made with chips. Among Nvidia's rivals, Advanced Micro Devices and Cerebras each dipped about 1%, while Broadcom rose about 4%. Micron fell about 2%, and Sandisk declined about 2% after announcing over $31B in anticipated investments in Japan with Kioxia. Other AI and networking stocks were largely in the red, but Intel jumped about 3%, and Taiwan Semiconductor Manufacturing and Texas Instruments each rose around 2%.

Cerebras Systems shares tumbled about 14% in extended trading on August 12, 2026, even after the AI chipmaker's second-quarter revenue rose 74.3% year over year to $180.1 million and it raised full-year guidance for the second time since its May 2026 IPO. The revenue figure missed the $194.2 million analysts expected, according to LSEG, while the adjusted loss narrowed sharply to 5 cents a share, well inside the 17 cents modeled. CEO Andrew Feldman said AI demand is "through the roof," and the company lifted its full-year core revenue guidance to $880 million to $890 million, up from $855 million to $865 million, and raised its annual adjusted gross margin target to 41% to 43% from 38% to 41%. Hardware sales, including its core AI chips, declined to $54.1 million from $70.3 million a year earlier, meaning more growth now comes from renting back its own systems to cloud customers than from selling chips outright. Cerebras posted a GAAP net loss of $450.5 million for the quarter, compared with a $309.5 million profit a year earlier, though most of that swing came from $386.6 million in stock-based compensation costs. Morgan Stanley analysts said "execution remains the key debate" given the scale and speed of the capacity buildout required, and both Citi and Mizuho trimmed their price targets after the results. Cerebras and Advanced Micro Devices partnered in July 2026 to combine their chips in AMD's Helios AI systems, with Feldman saying the combined system delivers five times higher tokens per second per watt than competing setups.

US stocks rallied on Thursday after a favorable producer price report eased inflation concerns and reduced expectations for a Federal Reserve rate hike in September. The S&P 500 rose 0.65%, the Dow Jones Industrial Average added 0.13%, and the Nasdaq 100 gained 1.15%. The July final-demand PPI was unchanged month-over-month and up 4.7% year-over-year, below market expectations, while core PPI rose 0.2% month-over-month, also weaker than forecast. However, US tech stocks were undercut by an -8% drop in Cisco Systems after disappointing guidance and a more than -12% decline in Cerebras Systems (CBRS) due to a decline in sales at its hardware business. Crude oil prices fell more than 2% amid no new military strikes in the Persian Gulf, and the 10-year Treasury yield dropped 4.4 basis points to 4.639%.

Cerebras Systems slumped over 18% premarket on Thursday after it missed key estimates despite soaring cloud revenue, raising doubts about the ability of its AI chips to challenge Nvidia. The Sunnyvale, California-based company's cloud business roughly quadrupled to $126 million versus the year-ago quarter, but its hardware sales, including AI chips, declined to $54.1 million from $70.3 million a year ago. Second-quarter adjusted gross margin fell to 40.6% from 46.5% in the prior quarter, while revenue missed analysts' estimates despite a higher annual outlook. Citi and Mizuho cut their price targets slightly, and the median target as per estimates compiled by LSEG implied an upside of 15% from the previous close. Separately, shares of Cisco Systems fell over 6% as its outlook fell short of lofty expectations tied to its rise as a beneficiary of the AI data center buildout, with Cisco expecting $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.

Several companies saw significant premarket moves following their latest earnings reports. Tapestry dropped 7% after fiscal fourth-quarter revenue of $1.88 billion only slightly exceeded estimates, while Yeti slipped nearly 4% despite beating earnings expectations. Cerebras Systems tumbled nearly 18% after second-quarter revenue of $180 million missed the $194 million LSEG consensus, and StubHub lost almost 17% on weaker-than-expected adjusted gross margin. Birkenstock jumped 10% on better-than-expected quarterly results and raised full-year guidance, while EnerSys gained 13% after earnings and revenue topped Wall Street forecasts. Grocery Outlet rose 9% and Jack in the Box added more than 6% on earnings beats.

Europe is facing its fifth heatwave of this summer, expected to peak on Thursday, August 13, amid extreme weather that is straining public health systems and energy networks across the region, while the United Kingdom is on track for its hottest summer on record. The scorching conditions are driven by successive high-pressure systems, or heat domes, blanketing the region, and are also disrupting freight transport on some major rivers. In financial markets, global stocks climbed near record highs after US inflation data came in cooler than expected, easing concerns that the Federal Reserve would raise interest rates in the near term. The yen strengthened after the Japanese government signaled support for the Bank of Japan to raise rates sooner, with the next hike possibly coming in September or October. West Texas Intermediate crude traded around 83 dollars a barrel, snapping a six-day winning streak. On the geopolitical front, the administration of President Donald Trump is stepping up economic pressure on Iran, including successive rounds of additional economic sanctions and maritime interdiction measures aimed at curbing Iranian oil exports. The UK government is planning legislation to regulate the use of AI in gene synthesis, amid concerns that the absence of global oversight could allow malicious actors to use the technology to create synthetic DNA that might lead to the development of biological weapons. In tech stocks, Lenovo surged as much as 22 percent in Hong Kong to a record high after reporting quarterly revenue up 43 percent, beating market expectations on AI-related demand. In contrast, Cerebras fell in after-hours trading after hardware revenue declined, while Cisco slipped as analysts viewed the company's AI sales outlook as highly cautious. Another focus is US-Japan cooperation on developing rare earth deposits beneath the seabed near Minamitorishima Island, more than 1,000 miles southeast of Tokyo, with estimates suggesting the resources could meet industrial demand for centuries and help both countries build a complete rare earth supply chain, reducing reliance on China for strategically important minerals.

Shares of U.S. AI semiconductor startup Cerebras Systems plunged about 16% in after-hours trading on the 12th after the U.S. stock market close. Investors were disappointed that second-quarter revenue fell short of market expectations. The stock had closed regular trading up 11.6%, and was up 15.5% since the start of the week. Second-quarter revenue rose 74.3% to 180.11 million dollars, below analyst estimates of 194.23 million dollars. Adjusted loss narrowed to 6.91 million dollars from a loss of 40.5 million dollars in the same period a year earlier. Cloud business revenue expanded to about four times the year-earlier level at 126 million dollars, while hardware revenue fell to 54.1 million dollars from 70.3 million dollars a year earlier. The company raised its 2026 adjusted revenue outlook to 880 million to 890 million dollars, up from its previous forecast of 855 million to 865 million dollars. It also raised its 2026 adjusted gross margin outlook to 41 to 43 percent, from its previous forecast of 38 to 41 percent.

Several companies saw notable after-hours stock moves following their latest earnings reports. Cerebras Systems tumbled 14% after second-quarter revenue of $180 million missed the $194 million LSEG consensus estimate. StubHub lost more than 15% as adjusted gross margin of 82.2% fell short of the 84.3% StreetAccount consensus, though it reaffirmed its full-year adjusted EBITDA outlook. Jack in the Box gained more than 1% after fiscal third-quarter earnings of 96 cents per share beat the 88-cent FactSet estimate, while Red Robin Gourmet Burgers rose nearly 2% on better-than-expected second-quarter results. Coherent slipped almost 3% despite first-quarter guidance above expectations, and Cisco Systems fell 3% after adjusted gross margin only narrowly beat estimates.