Cerebras posted strong Q1 results — revenue up 92% to $193.4m and a narrowed net loss — yet its stock fell ~10% after the company warned gross margins would drop sharply from 46.5% to 36–38% in Q2. The culprit is not chip supply but a shortage of data-centre space and power. Cerebras is renting back its own systems and building capacity at speed, costs that will shave 10–15 margin points this year. CEO Andrew Feldman called it a 'grand irony' that buildings, not chips, are now the limiting factor. The company guided full-year revenue of $855–865m, above analyst estimates, and highlighted a $20bn+ OpenAI inference deal and a 178% jump in cloud/services revenue. Still, the stock has fallen ~28% from its post-IPO peak, weighed down by high expectations, a broader chip-sector sell-off, and concentration risk around a few large customers.
