Cerebras stock plunges 14% after second earnings report following IPO

Cerebras Systems raised its full-year guidance in the second earnings report following the chipmaker's initial public offering in May. But the stock tumbled about 14% in extended trading.

Here's how it did in the second quarter versus LSEG consensus estimates:

Cerebras said in a statement on Wednesday that it expects core revenue of between $214 million and $216 million this quarter.

The company raised its full-year outlook and now expects core revenue of between $880 million and $890 million, up from a prior range of $855 million to $865 million.

The $180 million sales figure for the second quarter represents total revenue. Cerebras also reported a core revenue figure of $210 million, which includes "pass-through revenue."

The company recorded a net loss of $450.5 million, after finishing with a profit of $309.5 million, or $1.91 per share, a year earlier. Most of the loss is tied to stock-compensation costs of $386.6 million.

Cerebras CEO Andrew Feldman said in an interview that AI demand is "through the roof" and that companies are paying up for its specialty inference chips.

Cerebras is challenging AI chip leader Nvidia for some AI tasks, especially those that need "low latency," or quick responses for interactivity. The company calls it "fast inference." The company said its core gross margin will expand to between 38% and 40% in the current quarter, addressing a concern for investors.