Cerebras Systems (CBRS) stock fell 17% in premarket trading on Thursday after its Q2 results and Q3 outlook failed to impress investors. The AI chipmaker swung to a loss of $2.98 per share in Q2 from a profit of $1.91 per share in the year-earlier period. The company reported a second quarter core gross margin of 40.6%, noting it would have been 500 basis points higher and more similar to Q1's 46.5% if not for temporarily renting some systems back from cloud customers. CFO Bob Komin said Q3 would be "the low point" for core gross margin before improvement in Q4. Cerebras forecast third quarter core revenue of $214 million to $216 million, topping Wall Street's consensus of roughly $210 million, though some analysts had estimates as high as $220 million. The company expects core revenue of $880 to $890 million for the fiscal year and forecast core gross margin of 38% to 40% for Q3 and 41% to 43% for full-year 2026. Bloomberg Intelligence analyst Kunjan Sobhani said the outlook was "only modestly above expectations." Hardware revenue declined 23% year over year, while the cloud business nearly quadrupled to $127.7 million. Cerebras went public in May and seeks to compete with Nvidia, with partnerships including Amazon and OpenAI. It is set to hold its Supernova event