Shares of AI computing company Cerebras Systems (CBRS) have been cut in half, trading around $184, which is approximately 52% below their post-IPO peak of $386.34. This significant drop in valuation comes despite the company reporting strong business performance and a positive outlook.
For its second quarter, Cerebras announced that its core revenue more than doubled year-over-year to $210 million, and it raised its full-year revenue guidance to between $880 million and $890 million. Despite the stock's sharp decline, its valuation remains high, trading at about 145 times next year's estimated earnings. The sell-off suggests investors are recalibrating the price they are willing to pay for future growth, even with a contracted backlog of $25.4 billion.