Cerebras Systems shares fell below their initial public offering price of $185 on June 24, after the AI chip company's first post-IPO earnings report revealed a significant drop in forecasted gross margins.
The stock, which trades under the ticker CBRS, dropped as much as 19.6% intraday to around $182. The decline began in after-hours trading on June 23 following the release, when shares fell roughly 11%.
Cerebras reported first-quarter revenue of $193.4 million, up 92% to 94% from a year earlier, and narrowed its adjusted net loss to $2.5 million. But the company guided for second-quarter core gross margins of 36% to 38%, sharply below the 46.5% posted in the first quarter. That margin compression spooked investors, overshadowing a full-year revenue forecast of $855 million to $865 million, which represents 69% annual growth.
Cerebras, which went public on May 13, 2026, and saw its shares surge nearly 70% on debut, competes directly with Nvidia and other chip designers in the AI compute space. Its distinctive wafer-scale engine technology uses entire silicon wafers as single chips, a novel approach to powering artificial intelligence workloads.
The stock's break below its IPO price puts the $185 level in focus as a potential support zone, since institutional investors who bought in at the offering may step in to defend that price.