Updated
Updated · Yahoo Finance · Aug 12
Cisco, Cerebras Shares Fall as S&P 500 Earnings Growth Reaches 50%
Updated
Updated · Yahoo Finance · Aug 12

Cisco, Cerebras Shares Fall as S&P 500 Earnings Growth Reaches 50%

3 articles · Updated · Yahoo Finance · Aug 12

Summary

  • Cisco and Cerebras shares fell even as their latest earnings reinforced strong demand tied to the AI buildout.
  • Nearly 90% of S&P 500 companies have reported, and FactSet data show second-quarter earnings are on pace to rise 50% from a year earlier—the fastest growth since 2021.
  • Bank of America strategists said AI has been the main engine of that broad-based profit surge, underscoring the disconnect between upbeat demand signals and the two stocks' declines.
  • CoreWeave, Supermicro and Applied Materials report later this week, making them the next key test of whether AI-driven earnings strength can keep supporting valuations.

Insights

Why are markets punishing top-tier AI companies with stock sell-offs despite their record-breaking 2026 earnings?
As AI workloads shift to production, will unexpected bottlenecks in storage and power derail the industry's explosive growth?