Cerebras Stock Tanks 15% After-Hours Amid Hardware Sales Decline

Cerebras Systems Inc., often touted as a rival to Nvidia, saw its stock plunge 15% after-hours on Wednesday despite raising its full-year outlook. The company delivered a mixed second-quarter financial report that highlighted growing pain in its physical hardware segment.

Hardware sales fell by 23% in Q2 to $54.1 million due to 'lumpy' customer demand and data center space constraints. However, revenue in the cloud business skyrocketed to $126 million.

Cerebras posted a net loss of $450.5 million, driven by $386.6 million in stock-based compensation costs, while total sales rose 74% year-over-year to $180.1 million. The company increased its full-year core revenue projections to between $880 million and $890 million.