Cerebras Systems' stock plummeted 5.05% during Thursday's intraday trading session.
The decline follows recent investor concerns over the company's profitability outlook, highlighted by its second-quarter core gross margin guidance of 36%-38%, which significantly trails industry leader NVIDIA. This guidance was disclosed in the company's first post-IPO earnings report, which initially triggered a selloff.
Adding to the pressure, IBM unveiled a breakthrough chip technology capable of producing semiconductors smaller than 1 nanometer. This new "nanostack" architecture is reported to shrink a type of memory circuit (SRAM) by 40%, a component heavily used in chips from companies including Cerebras Systems. The advancement represents a significant competitive development in the AI computing space, where Cerebras operates.