Why did Cerebras' stock price plummet by nearly 20% in a single day, despite its first earnings report showing a 94% increase in revenue? The financial report itself is not bad. In the first quarter, the revenue was 193 million US dollars, with a full year revenue guidance growth of nearly 70%. OpenAI has given over 20 billion US dollars in long-term orders, and AWS is also on the list of partners. There is no problem with the demand, the real concern is the profit margin. The company's core gross profit margin for the first quarter was 47%, but its annual guidance was only 38% -41%, and it may even drop to 36% -38% in the second quarter. The management explained that the problem is not with the demand, but with the demand being too strong. In order to meet customer orders, the company had to rent back the equipment it had sold from customers and accelerate the construction of new data centers. This means that Cerebras is not facing an order issue, but a production capacity issue. The most successful business model in the semiconductor industry over the past decade has been NVIDIA. Designing chips, selling chips, and collecting high gross profits are mostly borne by customers for data centers, power, computer rooms, and operations. Cerebras not only sells chips, but also provides inference services and continues to expand its data center and computing infrastructure. With the growth of OpenAI orders, the company has begun evaluating its data center layout in multiple regions such as Israel, the United Arab Emirates, Singapore, and India. In order to digest these orders, the company also needs to bear additional costs, which puts pressure on profit margins. In addition, although Cerebras' wafer level chips form a technological moat, they also bring more complex manufacturing processes, higher production costs, and greater yield challenges. From the current perspective, the growth of Cerebras relies not only on technological advantages, but also on sustained capital investment. Therefore, the market is beginning to reassess whether Cerebras can achieve NVIDIA style high profit margins and high return on capital in the future.