CoreWeave Vs Nvidia: Which AI Stock is the Better Investment

Backed by Nvidia NVDA, CoreWeave CRWV stock has skyrocketed more than +300% since launching its IPO in late March, as investor confidence has swooned for the AI cloud infrastructure company. To that point, CoreWeave stock is trading over $170 a share, having an asking price that tops Nvidia shares at around $146.This certainly begs the question of whether the hype for CoreWeave stock is overdone or if the company is potentially a better AI investment than chip giant Nvidia.   Image Source: Zacks Investment Research CoreWeave & Nvidia Partnership OverviewReshaping the AI infrastructure landscape, CoreWeave has become Nvidia’s top GPU cloud partner, ahead of traditional hyperscalers like Amazon AMZN, Microsoft MSFT, and Alphabet GOOGL. Having expertise in cutting-edge cloud services optimized for AI workloads, CoreWeave gained early access to Nvidia’s high-performance GPUs, including the much-coveted Blackwell chips.Furthermore, CoreWeave has helped Nvidia’s much sought-after AI chips build massive AI clusters that broke MLPerf training records, a widely recognized benchmarking suite designed to measure the performance of machine learning hardware, software, and services. It’s noteworthy that MLPerf Inference evaluates how quickly and efficiently systems can make predictions using trained models in real-world scenarios like object detection, medical imaging, and generative AI usage. Nvidia’s Stake in CoreWeaveThanks to its successful partnership with Nvidia, CoreWeave has attracted major clients including OpenAI, Meta Platforms META, and Microsoft. Notably, Microsoft accounted for 62% of CoreWeave’s revenue in 2024. Being CoreWeave’s major GPU supplier and an early investor, it’s safe to say that Nvidia has earned significant revenue from the partnership and the appreciation of its equity stake of over 24 million CRWV shares. CoreWeave & Nvidia’s Sales GrowthPinpointing the market’s high sentiment for CoreWeave and alluding to lucrative earnings potential is the company’s rapid top-line expansion. CoreWeave’s total sales are expected to skyrocket 164% this year to $5.02 billion compared to $1.9 billion in 2024. Zacks' projections call for CoreWeave’s sales to soar another 127% next year to $11.41 billion.Attributed to the AI boom, this type of growth has warranted investors to pull CoreWeave into Nvidia’s stratosphere, as Nvidia’s top line has expanded over 680% in the last five years from sales of $16.67 billion in its fiscal 2021 to $130.5 billion last year. Nvidia’s sales are currently projected to increase 51% in its current fiscal year 2026 and are projected to leap another 25% in FY27 to $247.24 billion.Image Source: Zacks Investment Research CRWV & NVDA EPS RevisionsAlthough CoreWeave is not expected to be profitable yet after being founded in 2017, it’s still imperative to pay attention to the trend of earnings estimate revisions (EPS). Unfortunately, EPS revisions for fiscal 2025 are noticeably down over the last 60 days from estimates that called for an adjusted loss of -$0.37 a share to -$1.30. More concerning, CoreWeave’s FY26 EPS estimates have dipped to -$0.17 a share from projections that called for the company to break even two months ago.Image Source: Zacks Investment ResearchAs for Nvidia, EPS estimates for its FY26 and FY27 are nicely up in the last 30 days, rising 1% and 3% respectively. Known for efficient operational performance, Nvidia’s annual earnings are now slated to spike 42% in its FY26 and are projected to climb another 32% in FY27 to $5.60 per share.Image Source: Zacks Investment Research Conclusion & Final ThoughtsCoreWeave and Nvidia have built a powerhouse AI partnership that should benefit and complement each other for the foreseeable future. That said, the rally in CoreWeave stock does look overdone considering the decline in EPS revisions, making it an ideal time to take profits in CRWV.For now, Nvidia appears to be the better AI investment, with the obvious reasons being its track record of efficiency and productivity. Plus, the trend of rising EPS estimates for NVDA is not overwhelming but does allude to the notion that investors could still be rewarded for holding the chip giant’s stock, although there may still be better buying opportunities ahead.  Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks