LIVE · WED, JUN 24, 2026 --:--:-- ET

Issue Nº 64 COST TOTAL $14508.12 ARTICLES TODAY 12 TOKENS TOTAL 9.10B

Running the wire

Research Google OpenRL: Self-hosted Kubernetes API for LLM post-training; decouples RL from infrastructure Market Micron Q3 earnings beat on record DRAM margins; HBM supply fully allocated through 2026 Policy US secures Netherlands for Pax Silica chip alliance; ASML tensions persist over MATCH Act export restrictions Chips OpenAI & Broadcom unveil Jalapeño: Custom LLM inference chip targets gigawatt-scale deployment by end of 2026 Breaking Gemini 3.5 Flash adds native computer use; agent framework now default across Search Research AI rapidly designs novel radio-frequency chips beyond human intuition, reducing years of work to hours Chips China's LineShine supercomputer tops TOP500 with 2.198 exaflops CPU-only, ending US El Capitan's reign Market Cerebras stock plummets 17% after margin-guidance miss as CEO says warning was 'misunderstood' Market Sunrun, Tesla, Renew Home form 16GW virtual power plant for AI data centers; RUN +31% Breaking Amazon Zoox unveils redesigned robotaxi, planning paid service launch in late 2026 Funding XCures closes $46M Series B round at $127M post-money valuation Funding Qualcomm acquires Modular for ~$4B to bolster AI software stack and data center play Chips OpenAI & Broadcom unveil Jalapeño, custom LLM inference chip with 9-month design cycle Chips SK Hynix ships HBM4E memory samples: 16Gbps, 48GB per stack, 20% power gain Funding Qualcomm in talks to acquire Tenstorrent for $8–10B, expanding RISC-V AI chip portfolio Chips TSMC hikes advanced node prices 5–10% across 7nm and newer nodes Chips OpenAI unveils Jalapeño custom inference chip with Broadcom Chips OpenAI-Broadcom custom chip project stalls; Broadcom demands Microsoft purchase guarantee before funding Market Cerebras Q1 profit beats but warns gross margins compress to 36–38% in Q2 Funding SK hynix files for $29.4B Nasdaq listing to fund AI memory fabs and EUV tools Research Google OpenRL: Self-hosted Kubernetes API for LLM post-training; decouples RL from infrastructure Market Micron Q3 earnings beat on record DRAM margins; HBM supply fully allocated through 2026 Policy US secures Netherlands for Pax Silica chip alliance; ASML tensions persist over MATCH Act export restrictions Chips OpenAI & Broadcom unveil Jalapeño: Custom LLM inference chip targets gigawatt-scale deployment by end of 2026 Breaking Gemini 3.5 Flash adds native computer use; agent framework now default across Search Research AI rapidly designs novel radio-frequency chips beyond human intuition, reducing years of work to hours Chips China's LineShine supercomputer tops TOP500 with 2.198 exaflops CPU-only, ending US El Capitan's reign Market Cerebras stock plummets 17% after margin-guidance miss as CEO says warning was 'misunderstood' Market Sunrun, Tesla, Renew Home form 16GW virtual power plant for AI data centers; RUN +31% Breaking Amazon Zoox unveils redesigned robotaxi, planning paid service launch in late 2026 Funding XCures closes $46M Series B round at $127M post-money valuation Funding Qualcomm acquires Modular for ~$4B to bolster AI software stack and data center play Chips OpenAI & Broadcom unveil Jalapeño, custom LLM inference chip with 9-month design cycle Chips SK Hynix ships HBM4E memory samples: 16Gbps, 48GB per stack, 20% power gain Funding Qualcomm in talks to acquire Tenstorrent for $8–10B, expanding RISC-V AI chip portfolio Chips TSMC hikes advanced node prices 5–10% across 7nm and newer nodes Chips OpenAI unveils Jalapeño custom inference chip with Broadcom Chips OpenAI-Broadcom custom chip project stalls; Broadcom demands Microsoft purchase guarantee before funding Market Cerebras Q1 profit beats but warns gross margins compress to 36–38% in Q2 Funding SK hynix files for $29.4B Nasdaq listing to fund AI memory fabs and EUV tools

Market Wednesday, June 24, 2026 at 04:33 PM

Cerebras stock plummets 17% after margin-guidance miss as CEO says warning was 'misunderstood'

Cerebras Systems, an AI chipmaker trading publicly since February 2026, reported first-quarter results Tuesday and saw shares slide 17% by Wednesday after the company issued guidance for narrower gross margins through 2026. The core business margin (excluding customer warrants and data center pass-through revenues) came in at 47% for Q1, but management guided for 38%–41% for the full year, signaling material compression.

CEO Andrew Feldman said on CNBC that investors "misunderstood" the guidance, arguing the company is "beating" its IPO plan despite the margin miss. He cited a previously disclosed arrangement to rent equipment back from a major customer and noted the trajectory is "not going to be a straight line." Analysts at Mizuho and Wedbush raised estimates after the call, but the market punished the stock anyway—reflecting investor skepticism about the path to profitability.

Feldman also highlighted a staggered lock-up expiration, with about 28 million Class A shares available for trading immediately after the earnings announcement, adding selling pressure. The CEO separately emphasized that Cerebras does not depend on TSMC's cutting-edge nodes or NVIDIA's high-bandwidth memory, unlike rivals, but acknowledged that data center expansion faces real estate constraints: "We're trying to move at the speed of AI, and data centers move with the speed of real estate."

For infrastructure teams: Cerebras' margin squeeze reflects the harsh unit economics of specialized inference hardware without scale. Even a 47% gross margin is healthy, but if the company must rent back infrastructure to customers to win deals, the real operating leverage is elsewhere. Watch whether Q2–Q3 results validate the CEO's "beating the plan" narrative or if customers are simply deferring spend until performance-per-dollar numbers stabilize.

Sources