TradingKey – On June 29, Eastern Time, Cerebras Systems ( CBRS) once surged over 20%. As of press time, it was up 19.36% at $216.75. The latest portfolio disclosure of Cathie Wood, CEO and CIO of Ark Invest, showed that she added over 20,000 shares of CBRS stock last Friday, reflecting her continued optimism about the AI chip sector.

It is reported that the AI chip company, widely regarded as a competitor to Nvidia, has seen its stock price fall by about 40% since its IPO, hitting an all-time low of $160.81 last Friday.

[Source: TradingView]

The primary reason for the stock price hitting a new low is that in its first quarterly earnings report since going public, the company projected its second-quarter core gross margin would contract…