Cerebras stock falls over 9% after mixed Q2 results
Cerebras Systems saw its stock fall over 9% on Thursday, thanks to a mix of good and not-so-great news in its second quarter.
Cloud computing revenue jumped, but hardware sales, including those all-important AI chips, slipped.
Analysts are now questioning whether Cerebras can keep up with giants like NVIDIA in the AI race.
Cerebras adjusted gross margin 40.6%
The company's adjusted gross margin shrank to 40.6% from last quarter's 46.5%, and overall revenue didn't hit what analysts were hoping for, even though Cerebras raised its annual forecast.
Citi and Mizuho responded by lowering their price targets, but the median target as per estimates compiled by LSEG still implied about 15% upside.
Cisco stock falls on weak outlook
It's not just Cerebras feeling the heat. Cisco Systems's stock also dropped after a weak outlook, showing that investors are watching AI-focused companies closely as Big Tech pours billions into artificial intelligence this year.