CoreWeave vs Nvidia: Which AI Stock is Best for Your Portfolio

Published Date : 09/06/2025 

CoreWeave has made a significant impact in the AI cloud services market, but Nvidia's comprehensive AI ecosystem and solid growth trajectory make it a formidable competitor. Explore which stock might be the better investment. 

CoreWeave has made a splash in the market as it quickly grows its cloud services business. Nvidia, on the other hand, is proving that its AI lineup of products is becoming more and more pervasive. Both companies are at the forefront of the AI revolution, but which one should you invest in?

CoreWeave is valued at a high multiple and has massive capital spending planned. The company just went public in late March, and shares have jumped about 270% since its initial public offering (IPO). This rapid growth has caught the attention of many investors, who are now wondering if Nvidia's shine is fading and if it's time to buy CoreWeave instead. However, I would argue that this is a flawed perspective.

Investors may be taking a breather after the early exponential gains in Nvidia stock. Growth in the business itself has also slowed, though that was inevitable. Sales of its advanced chips in the data center segment had been growing like a weed. Revenue in that segment has been increasing in each consecutive quarter for the last two years. In the most recent fiscal quarter, that growth rate slowed to 10%, as seen below.

Despite this trend, it's clear that AI demand hasn't yet peaked. Remember, these are still sequential quarterly increases in data center sales. For perspective, fiscal first-quarter revenue was a 73% jump compared to the prior year period. Management also guided investors to expect further revenue growth in the current quarter. So, while an unsustainable growth rate slows, the company is still solidly in growth mode.

That's because it's not just Nvidia's advanced GPU and CPU chips driving sales and expanding AI infrastructure. Its AI ecosystem includes interconnect technologies, the CUDA (compute unified device architecture) software platform, and artificial intelligence processors that are part of many different types of architectures. CEO Jensen Huang recently touted Nintendo's new Switch 2 gaming console, for example. The unit includes Nvidia's AI processors that Huang claims 'sharpen, animate, and enhance gameplay in real time.'

Nvidia has a broad array of customers. As AI factories and data centers are built, it will continue to be a major supplier and one that investors should benefit from owning. Nvidia also invests in the AI sector. It makes sense to look at where the AI leader itself sees future gains. While CoreWeave is a promising new player in the AI cloud services market, Nvidia's comprehensive ecosystem and solid growth trajectory make it a strong contender in the long run. 

Frequently Asked Questions (FAQS): 

Q: What is CoreWeave's main business?

A: CoreWeave provides cloud services, focusing on AI and machine learning applications. The company has seen rapid growth since its IPO in late March.

Q: How has Nvidia's stock performed recently?

A: Nvidia's stock has increased by about 24% in the past month, while CoreWeave's shares have soared about 185% in the same period.

Q: What is the main reason for Nvidia's continued growth?

A: Nvidia's growth is driven by its advanced GPU and CPU chips, as well as its comprehensive AI ecosystem, including interconnect technologies and the CUDA software platform.

Q: How does Nvidia's AI ecosystem support its business?

A: Nvidia's AI ecosystem includes hardware, software, and interconnect technologies that are integrated into various applications, from gaming consoles to data centers, enhancing its market position.

Q: What should investors consider when choosing between CoreWeave and Nvidia?

A: Investors should consider CoreWeave's rapid growth and high valuation, as well as Nvidia's established market presence, broad customer base, and solid growth trajectory in the AI sector. 

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