Cerebras, Cisco Fall After Failing to Meet Sky-High AI Expectations

US stocks: Cerebras slumps 18% as mixed quarterly results test AI growth narrative

Cerebras Systems experienced a notable drop in its shares after falling short of key financial projections. Although its cloud revenue saw a remarkable increase, hardware sales faced a downturn, sparking concerns regarding the competitive edge of its AI chip sector. Analysts pointed out difficulties in scaling operations effectively to satisfy demand. Similarly, Cisco Systems' stock also took a hit due to an outlook that did not meet expectation…

Cerebras, Cisco fall after failing to meet sky-high AI expectations

Shares in both Cerebras Systems and Cisco fell after the bell on Wednesday, with the companies reporting earnings that failed to match lofty AI expectations. Cerebras' share price slumped by around 16% following a miss on sales, with revenue forecasts for the current quarter falling short, while Cisco's beat on the top and bottom line was not strong enough to stop it from coming under pressure.

Nvidia rival Cerebras jumped 12%, then crashed 18%: what went wrong?

Cerebras Systems stock (NASDAQ: CBRS) whipsawed on Wednesday after investors cheered the Nvidia challenger before earnings, then punished it once the numbers arrived. The stock jumped 11.6% during the regular session to $262.06, only to fall about 18% in extended trading. Core revenue more than doubled, cloud revenue nearly quadrupled and management raised its full-year outlook. The problem was not demand. Cerebras is spending heavily to add com…