Cerebras shares dropped 15% in extended trading Wednesday after the chipmaker reported second-quarter revenue that fell short of Wall Street expectations, even as the company raised its full-year guidance.
CEO Andrew Feldman told CNBC that artificial intelligence demand is "through the roof" and that firms are willing to pay for Cerebras' specialty inference chips. Feldman said that gross margins are growing given that fast inference "is priced at a premium."
The revenue miss was enough to send investors to the exits despite the upbeat commentary and the raised annual outlook. Cerebras has positioned itself in the fast-growing AI inference market, where companies run trained models to generate responses and outputs at high speed.
Cisco posted a different kind of Thursday morning headache. The networking giant beat Wall Street expectations on both the top and bottom lines and issued a strong revenue forecast. Shares still fell 5.9% before the opening bell, according to CNBC's Morning Squawk newsletter.
The back-to-back earnings reports came as stock futures sat slightly higher Thursday morning following a mixed session on Wall Street the day before. Investors were also watching the morning release of the Producer Price Index report, which tracks wholesale inflation and is seen as another signal for Federal Reserve policy heading into September.
