Cerebras Systems’ stock took a hit after the AI chipmaker reported better-than-expected earnings but a narrower gross margin forecast. The company’s CEO said investors misunderstood the guidance, citing a plan to rent back equipment from a major customer to boost capacity. This will cut into profit margins, but the company’s revenue and net loss both improved. Why it matters: The company’s shift in strategy highlights the challenges of scaling AI chip production and the importance of balancing growth with profitability.