Cerebras CEO: Market Misunderstood Margin Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 24 2026
0mins
Source: CNBC
- Margin Forecast Misunderstanding: Cerebras CEO Andrew Feldman stated that investors misunderstood the company's margin guidance, leading to a 17% drop in stock price after its first earnings report, reflecting market concerns over a projected gross margin decline to between 38% and 41% for the year.
- Equipment Rental Needs: Feldman revealed that the company will need to rent back some equipment from a major client, indicating potential additional cost pressures in future operations and hinting at the complexities of client relationships.
- Lock-Up Restrictions: Cerebras insiders will face staggered lock-up restrictions, with approximately 28 million Class A shares becoming tradable on the second trading day after the earnings announcement, which could impact market liquidity and stock price volatility.
- Data Center Expansion Pressure: While Cerebras is not affected by high-bandwidth memory shortages, Feldman noted that the company faces pressure to accelerate data center construction due to rising demand from cloud infrastructure providers, which may impact its long-term growth strategy.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 444.230
Low
63.24
Averages
313.46
High
390.00
Current: 444.230
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- U.S. Expansion Strategy: TSMC has committed $165 billion to its Arizona expansion, establishing a campus covering over 2,000 acres with six planned fabs and an R&D center, which will mitigate geopolitical risks and attract more institutional investors to its stock.
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- Optimistic Future Outlook: Management guided for Q2 2026 revenue between $39 billion and $40.2 billion, with a full-year growth forecast exceeding 30%, indicating potential annual revenue well above $150 billion if current margins are maintained, showcasing robust profitability.
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- Optimistic Future Outlook: Management guided for Q2 2026 revenue between $39 billion and $40.2 billion, with full-year growth expectations exceeding 30%, indicating sustained growth potential driven by AI demand, potentially achieving over $150 billion in annual revenue by year-end.
- U.S. Expansion Strategy: TSMC has committed $165 billion to its Arizona expansion, establishing a campus covering over 2,000 acres with six planned fabs and an R&D center, which will mitigate geopolitical risks and attract more institutional investors to its stock.
- Strong Market Share: TSMC holds approximately 70% of the global market share in advanced chip manufacturing, and as demand for 3nm and 2nm chips increases, the company can sell its products at higher prices and better margins, further driving its market capitalization towards the $3 trillion mark.
See More
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- Significant Revenue Growth: In Q1 2026, TSMC reported revenue of $35.9 billion, a 40.6% increase year-over-year, with net income rising 58.3%, demonstrating strong market demand and operational excellence that solidifies its leadership in the global semiconductor industry.
- Optimistic Future Outlook: Management guided for Q2 2026 revenue between $39 billion and $40.2 billion, with a full-year growth forecast exceeding 30%, indicating potential annual revenue well above $150 billion if current margins are maintained, showcasing robust profitability.
- Market Share Advantage: TSMC holds approximately 70% of the global market share in advanced chip manufacturing, with 74% of its wafer revenue coming from 7nm and below technologies, allowing it to command higher prices and better margins amid surging AI demand.
- U.S. Expansion Strategy: TSMC has committed $165 billion to its Arizona expansion, covering over 2,000 acres, with the first fab achieving a $514 million profit in its first year, which is expected to attract more institutional investors and enhance the company's valuation.
See More
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- Alibaba Executive Sell-off: Alibaba President Michael Evans sold 720,000 shares at approximately $95 each, totaling around $68.36 million, which diluted his holdings by 96.26% to just 28,000 shares, indicating a potential lack of confidence in the company's future.
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- AI Market Potential: The company's pivot into the $26.5 trillion artificial intelligence market presents massive growth opportunities; however, its current valuation reflects high future growth expectations, posing risks for investors.
- Financial Data Analysis: With $19.3 billion in revenue and $7.1 billion in operating cash flow over the past 12 months, these figures seem solid, yet they starkly contrast with SpaceX's $2.1 trillion valuation, indicating market over-optimism regarding future growth.
- Profitability Challenges: Even if SpaceX's revenue and cash flow were to grow tenfold, it would still fall short of matching other giants like Meta and Microsoft, suggesting that investors should exercise caution until a clear growth pathway is demonstrated to justify such a high valuation.
See More
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- Strong Market Performance: Despite the overall stock market achieving significant gains this week, investor optimism remains high, indicating potential economic recovery.
- Sandisk Sell-Off: However, stocks related to AI, including Sandisk, experienced notable sell-offs on Thursday, putting pressure on their prices and reflecting short-term concerns in the tech sector.
- Investor Sentiment Fluctuation: This price volatility may impact investor confidence in the technology sector, particularly in AI, potentially leading to capital outflows and market instability.
- Uncertain Future Outlook: While the overall market is performing well, the pullback in individual stocks may affect broader investment strategies, prompting investors to carefully assess risks and returns.
See More
Semiconductor Market Dynamics and Outlook Analysis
- Micron's Strong Performance: Micron Technology (MU) reported fiscal Q3 revenue of $41.46 billion, up 345.7% YoY, with a gross margin of 84.6%, and Q4 guidance suggests margins near 86%, indicating robust market demand and profitability; however, the CEO noted that they can only meet 50% to two-thirds of customer demand in the medium term, hinting at potential easing of supply constraints ahead.
- TSMC's Growth Outlook: Taiwan Semiconductor Manufacturing (TSM) has seen its stock rise 43.59% YTD, with the CEO forecasting over 30% revenue growth for full-year 2026, and May monthly revenue reaching NT$416.98 billion (+30.1% YoY), showcasing strong performance in the semiconductor sector, although market expectations for margin expansion remain cautious.
- NVIDIA Facing Challenges: NVIDIA (NVDA) posted Q1 revenue of $81.62 billion, an 85.2% YoY increase, yet its stock has only risen 4.59% YTD and has dropped 12.46% over the past month, reflecting weakened investor confidence and concerns over multiple compression affecting future performance.
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See More
