Cerebras Systems CEO Andrew Feldman stated on Wednesday that investors misinterpreted the company’s margin outlook, which contributed to a 17% decline in Cerebras’ stock following its first earnings report since the IPO.
Analysts at Mizuho Securities and Wedbush Securities upgraded their outlooks after Cerebras’ earnings conference call. Nevertheless, the firm projected a reduced gross margin for its core operations, excluding customer warrants and data‑center pass‑through revenue. First‑quarter gross margin stood at 47%, with full‑year guidance of 38% to 41%.
\”It has been misinterpreted,\” Feldman said on CNBC’s \”Squawk on the Street.\” \”We presented a roadmap at the beginning of 2026, disclosed it during our IPO earlier this year, and we are already exceeding those expectations.\”
He clarified that Cerebras intends to temporarily lease back certain equipment from one of its major customers.
\”I don’t expect a linear trajectory,\” he added.
Investors must also consider that insiders are subject to a staggered lock‑up schedule. Approximately 28 million Class A shares will become tradable on the second trading day following the earnings release, per the prospectus.
The objective is to smooth the trading schedule, which traditionally unfolds several months after an IPO, Feldman explained.
\”Only time will tell whether it succeeds,\” he told CNBC’s Carl Quintanilla and Leslie Picker.
While rivals such as Nvidia grapple with shortages of high‑bandwidth memory and rely on advanced manufacturing processes from Taiwan Semiconductor Manufacturing Co., Cerebras does not depend on these resources, Feldman noted.
However, Cerebras faces pressure to expand its data‑center footprint, mirroring the challenges of cloud infrastructure providers, amid growing public scrutiny and lengthy permitting processes.
\”We aim to advance at the pace of AI, whereas data‑center development proceeds at the pace of real‑estate execution,\” Feldman remarked.
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Cerebras stock chart.
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