Cerebras Systems shares fell roughly 13% to about $225 in midday Thursday trading after the AI chipmaker posted fiscal second-quarter 2026 GAAP revenue of $180.11 million, up 74% from a year earlier but below consensus of $193.55 million, even as most AI hardware and infrastructure stocks traded higher. GAAP EPS of -$2.98 also missed estimates, though the company said headline results were distorted by $377.0 million of stock-based compensation and $44.3 million of customer warrant amortization. On its core basis, revenue was $209.87 million, up 103%, core gross margin was 40.6%, and cloud revenue rose 281% to $125.99 million, overtaking hardware sales after hardware revenue fell 23% to $54.1 million. Cerebras raised full-year 2026 core revenue guidance to $880 million to $890 million from $855 million to $865 million, lifted its core gross margin outlook to 41% to 43%, and projected third-quarter core revenue of $214 million to $216 million and core gross margin of 38% to 40%. The company said remaining performance obligations stood at $25.4 billion and that revenue should more than triple in 2027. Andrew Feldman said core revenue more than doubled and the cloud business nearly quadrupled. Cerebras is positioning its wafer-scale systems for AI inference, including work with AMD, AWS's Amazon Bedrock and OpenAI, but investors focused on the revenue miss, weak GAAP optics and a valuation that had climbed sharply since the company's May 2026 IPO at $185.