Cerebras and Cisco Shares Plunge Despite Strong Earnings Amid AI Supply Chain Bottlenecks
TiernanRayTech · x · 2026-08-14
Despite reporting strong quarterly earnings, shares of both Cerebras and Cisco took a hit as deeper concerns regarding global AI supply chain constraints spooked the market.
Key Highlights:
- Cerebras: Reported Q2 sales of $210 million (10% above expectations) and a significantly reduced net loss, projecting a potential tripling of revenue next year. However, the company noted it could have sold more if not for limitations in data center space and chip production capacity.
- Cisco: Experienced a 9% stock price drop despite an upbeat outlook.
The article highlights that the current pace of the AI industry has outstripped the physical world's ability to satisfy it. Constraints on power availability, data center space, and chip manufacturing speeds have become the new normal, actively limiting how much tech companies can deliver.
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