AI Chip Maker Cerebras Slumps 7.6% on June 25, Falls Below IPO Price Amid Margin Concerns

AI chip designer Cerebras fell 7.6% on June 25, marking its second consecutive trading day of losses and breaching its IPO price for the first time since its May 14 debut. The stock has wiped nearly $30 billion from its market capitalization in just over a month.

The selloff was triggered by the company's Q1 gross margin of 47%, trailing competitors like Nvidia (around 70%) and Micron (85%), and management's guidance for Q2 margins to narrow further to 36-38%. However, analysts point to strategic partnerships—including a reported $20 billion multi-year deal with OpenAI and planned AWS deployments—as supporting long-term growth prospects despite near-term margin pressure.