Cerebras falls on second-quarter revenue miss

For CBRS, adjusted gross margin fell to 40.6% in the second quarter from 46.5% in the previous quarter.

The company's second-quarter sales rose to $180.11 million, but fell short of the $194.23 million consensus, per LSEG data, as hardware revenue declined while its cloud business quadrupled.

The average rating of 11 analysts covering the stock is "buy," and their median price target is $295, according to LSEG-compiled data.

As of the previous day's close, the stock was up 18.5% year to date.

Shares of Cerebras Systems CBRS.O tumble 17.56% to $216.04 premarket after the AI chip designer reported second-quarter revenue below analyst estimates.

The quarterly miss highlights investors’ readiness to punish high-flying AI stocks if they fail to meet expectations on any major metric.