TradingKey – “Nvidia Challenger” Cerebras ( CBRS) extended its previous day’s post-market slide in Wednesday’s pre-market trading, with the stock price plunging over 12% at one point.

Source: TradingView

The immediate trigger for the market panic was the company’s earnings guidance—management expects the core gross margin for the second quarter of fiscal year 2026 to plunge from 46.5% in the first quarter to 36%-38%, with the full-year core gross margin guidance set at 38%-41%.

This level is not only far below its competitor Nvidia’s gross margin of around 70%, but also exposes the cost pressures the company faces during its expansion.

Chief Financial Officer Bob Komin explained during the conference call that a severe shortage of data…