Cerebras, an AI chipmaker, announced that its revenue nearly doubled to $193.4 million in the first quarter, a 92% increase from $99.5 million a year earlier. Despite this impressive growth, the company reported a net loss of $14 million, an improvement from a loss of $23.9 million in the same quarter last year.
The stock, which debuted on the Nasdaq last month at $185 and opened at $350, has since dropped 28%, closing at $226.72. The decline in share price follows Cerebras' forecast that its core gross margin will decrease to between 36% and 38% in the second quarter, down from 46.5% in the first quarter.
The company anticipates core revenue growth of 88% year-over-year, projecting full-year revenue between $855.5 million and $865 million. Cerebras aims to compete with Nvidia in the AI chip market and has secured significant contracts, including a $20 billion deal to supply OpenAI with computing power.
The upcoming conference call with executives will provide further insights into the company's performance and future outlook