Nvidia vs CoreWeave: Why Nvidia Leads in AI Stocks

Published Date : 09/06/2025 

While CoreWeave has seen a surge in stock performance, Nvidia's long-term growth potential and robust ecosystem make it the superior investment in the AI sector. 

There will prove to be many winners as artificial intelligence (AI) infrastructure continues to grow and AI end-uses expand. Nvidia (NVDA) has been the Wall Street darling surrounding everything AI for the past two years. CoreWeave (CRWV) has been getting the love most recently, though. Shares of the AI hyperscaler providing cloud services have soared about 185% in just the past month as of this writing. Nvidia stock has increased 24% in that time. CoreWeave just went public in late March, and the shares have jumped about 270% since that initial public offering (IPO). Investors may wonder if Nvidia's shine is fading, and it's time to buy CoreWeave instead. I'd argue that is flawed thinking, however.

The growth isn't over for Nvidia. 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%, though, as seen below. Despite that trend, it's clear AI demand hasn't yet peaked. Remember, these are still sequential quarterly increases in data center sales. For perspective, that 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.

Nvidia is more ubiquitous than you might think. 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 

Frequently Asked Questions (FAQS): 

Q: What is the main difference between Nvidia and CoreWeave in the AI market?

A: Nvidia is a leading manufacturer of AI chips and software platforms, while CoreWeave is a cloud service provider that leases data center space to companies needing scalable compute power.

Q: Why has CoreWeave's stock price increased so significantly recently?

A: CoreWeave's stock price has surged due to high demand for its cloud services, particularly from major tech companies like Microsoft, and its recent IPO.

Q: What are the risks associated with investing in CoreWeave?

A: Risks include high customer concentration, significant capital expenditures, and a high valuation, which could make the stock more volatile.

Q: How does Nvidia's financial performance compare to CoreWeave?

A: Nvidia has a lower price-to-earnings ratio and is already profitable, while CoreWeave is still in a high-growth phase and not yet earning a profit.

Q: What is Nvidia's role in CoreWeave's growth?

A: Nvidia is both an investor in and a supplier to CoreWeave, providing the AI chips that CoreWeave uses in its data centers. 

More Related Topics :