Cerebras Systems Inc. (CBRS) stock tanked 15% after-hours on Wednesday after the company delivered a mixed second-quarter financial report. Hardware sales slipped to $54.1 million due to "lumpy" customer demand and data center space constraints, an unexpected 23% drop from the same period a year ago. However, revenue in the cloud business skyrocketed to $126 million, jumping nearly fourfold, bolstered by a broader market shortage in AI compute capacity. For the quarter ended in June, Cerebras registered total revenue of $180.1 million, a 74% increase from a year prior. The chipmaker posted a net loss of $450.5 million, or $2.89 per share, driven by $386.6 million in stock-based compensation costs. Chief Executive Officer Andrew Feldman characterized the hardware decline as a side effect of uneven order delivery schedules, noting delays often stem from clients lacking sufficient data center space. Cerebras increased its full-year core revenue projections to between $880 million and $890 million, and expects revenue to more than triple in 2027. The company, touted as a rival to Nvidia (NVDA), is known for its Wafer-Scale Engine (WSE) technology. Recent efforts to bolster its footprint include a partnership with Advanced Micro Devices Inc. (AMD) and integration agreements allowing OpenAI to run models like GPT 5.6-Sol on its architecture. Feldman indicated that customer demand for low