Cerebras CEO says margin forecast was misunderstood as stock plummets

Cerebras Systems CEO Andrew Feldman said Wednesday that investors “misunderstood” the artificial intelligence chip maker’s margin guidance as shares tumbled 17 percent after the company reported results for the first time since going public.

Analysts at Mizuho and Wedbush raised their estimates following Cerebras’ earnings release. However, the company anticipates a narrower gross margin in its core business, excluding the impact of customer warranties and data center migration revenues. This figure was 47% in the first quarter and is expected to be between 38% and 41% for the full year.

“It’s misunderstood,” Feldman said on CNBC’s “Squawk on the Street.” “You know, we put together a plan at the beginning of ’26. We shared that plan when we went public a few months ago, and we’re moving beyond that plan.”

He said management made it clear that Cerebras would need to lease back some equipment from one of its largest customers.

“I don’t think it’s going to be a straight line,” he said.

Investors also have to contend with Cerebras insiders being subject to a staggered timeline for lock-up restrictions. This includes approximately 28 million Class A Cerebras shares, which directors, officers and non-employee shareholders can trade on the second trading day after Tuesday’s earnings announcement, the company said. prospectus.

The goal is to fix the program, which usually comes several months after the initial public offering, Feldman said.

“We’ll have to see if this is successful,” he told CNBC’s Carl Quintanilla and Leslie Picker.

Rivals like Nvidia We are facing a supply shortage and cutting-edge technology in high-bandwidth memory Taiwan Semiconductor Manufacturing Inc.Cerebras doesn’t need either, Feldman said.

But as Cerebras and cloud infrastructure providers face pressure to open more data centres, public opposition is growing and permitting processes may be prolonged.

“We are trying to move at the speed of artificial intelligence, and data centers are moving at the speed of real estate,” Feldman said.