US stocks: Cerebras slumps 18% as mixed quarterly results test AI growth narrative

Cerebras Systems experienced a notable drop in its shares after falling short of key financial projections. Although its cloud revenue saw a remarkable increase, hardware sales faced a downturn, sparking concerns regarding the competitive edge of its AI chip sector. Analysts pointed out difficulties in scaling operations effectively to satisfy demand. Similarly, Cisco Systems' stock also took a hit due to an outlook that did not meet expectations.