Coreweave Vs Nvidia Which Ai Stock Is The Better Investment

Bonisiwe Shabane

-Dec 2, 2025, 10:51 PM

coreweave vs nvidia which ai stock is the better investment

These two stocks have benefited significantly from a surge in demand due to artificial intelligence. When you think of top artificial intelligence (AI) stocks to own, Nvidia (NVDA +2.95%) inevitably is one of the first ones that probably comes to mind. In recent years, it generated mammoth, life-changing returns for investors. But it's also the most valuable company in the world today, with a valuation of nearly $4.3 trillion. Investors may be looking for similar stocks, but perhaps smaller ones, that may possess more upside. CoreWeave (CRWV +6.67%) is one option that may fit the bill.

It rents out AI computing power, giving customers access to Nvidia's latest chips. It should benefit from Nvidia's continued growth and the growing demands of companies developing AI-powered products and services. And it's a much smaller company, at just a fraction of Nvidia's valuation. It's up big this year and coming off a stellar quarter. Which of these AI stocks makes for the better buy right now? With Nvidia, you're investing in a high-powered business that continues to dominate the AI chip market, being the go-to option for many tech companies.

In the trailing 12 months, the company has reported $148.5 billion in revenue, with profits totaling just under $77 billion. Those are incredibly impressive profit margins, which highlight just how much dominance the company has and the pricing power it possesses. And that's with export restrictions limiting its sales to China. 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.

Reshaping 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... 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. Thanks 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... Today, August 27, is Nvidia’s turning point. A new era of AI is here, and companies are fighting for your investment. On one side, you have NVIDIA, the chip giant that basically owns AI. On the other, CoreWeave, an upstart that went from mining crypto to powering ChatGPT. Here's the thing: AI infrastructure spending is about to explode from $87.6 billion this year to nearly $200 billion by 2030.

That's a 17.7% AGR that makes your savings account look like a rounding error. But which stock should you buy? After a deep dive into the numbers, NVIDIA wins for most investors. NVIDIA owns $4.33 billion worth of CoreWeave stock, about 24 million shares. They're not just selling chips; they're betting on the entire AI ecosystem. Here's why and when CoreWeave might make sense for your portfolio.

AMZN Quick QuoteAMZN GS Quick QuoteGS MS Quick QuoteMS NVDA Quick QuoteNVDA CRWV Quick QuoteCRWV You follow Tirthankar Chakraborty - edit Amid the rapidly growing artificial intelligence (AI) market, NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) saw a significant rise in sales of data center graphics processing units (GPUs), resulting in an astonishing 33,300%... Meanwhile, another AI-focused company, CoreWeave, Inc. (CRWV Quick QuoteCRWV - Free Report) , with a smaller market cap of $47 billion, is also experiencing growth, prompting investors to wonder if it can achieve similar success. Let’s examine which company currently has more growth potential, especially after both companies released positive earnings reports for the second quarter.

NVIDIA recently reported positive growth in both top and bottom lines for the fiscal second quarter. In the quarter, NVIDIA’s revenues increased by 56% from $30.04 billion a year ago. The generative AI boom has helped NVIDIA post year-over-year revenue growth of more than 50% for nine successive quarters. 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.

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... 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.' In the fast-evolving world of artificial intelligence (AI), new players are emerging as vital contributors to the infrastructure that supports this technological revolution. Generally viewed as the Wall Street darling of AI, Nvidia has dominated headlines with its AI chips and products.

However, CoreWeave, an emerging contender in the cloud services sphere, is not just making waves; it’s creating a tsunami. Recently traded on the NASDAQ under the ticker CRWV, CoreWeave’s stock value has skyrocketed by a staggering 185% in just one month. In stark contrast, Nvidia’s shares have risen only 24% during the same period. Remarkably, since its initial public offering (IPO) in March, CoreWeave’s stock has surged by approximately 270%, igniting investor excitement and speculation about its potential to outpace Nvidia. While Nvidia remains a leader in the market, there are signs that its growth trajectory may be moderating. After experiencing phenomenal growth over the past two years, the company’s revenue from its data center segment has slowed to a growth rate of 10%.

This shift indicates that investors might need to recalibrate their expectations regarding future performance. Despite these fluctuations, demand for AI isn’t waning. The recent fiscal first-quarter revenue revealed a remarkable 73% increase compared to the previous year. The market seems to be adjusting rather than retracting, and many insiders project ongoing revenue growth for the current quarter. As data centers proliferate, Nvidia remains well-positioned to leverage its existing relationships and infrastructure. Nvidia’s competitive edge lies not only in its advanced GPU and CPU chips but also in the robust AI ecosystem it has created.

From interconnect technologies to the pivotal CUDA software platform, Nvidia is reshaping the landscape of AI. For instance, CEO Jensen Huang highlighted the impact of Nvidia’s innovative processors in Nintendo’s upcoming Switch 2 gaming console, emphasizing how its chips enhance gaming experiences in real time. CoreWeave (CRWV +5.61%) has been one of 2025's most successful IPOs, with the stock tripling over its launch price when it went public in late March. That's an impressive run, but CoreWeave is also more than 30% off its all-time high, making investors wonder if now is a good time to buy. Any company in the artificial intelligence (AI) investing realm is going to be compared automatically to Nvidia (NVDA +2.41%). Nvidia has been the gold standard of AI investing since the AI race kicked off in 2023, and investors have made a ton of money from buying Nvidia shares and staying patient with it.

To add another twist to this analysis, Nvidia is actually an investor in CoreWeave itself, holding nearly 4 million shares. Of these two, is there one that stands out as the better buy? Nvidia's business is simple: make the best graphics processing units (GPUs) possible, and develop supporting software and hardware to maximize their potential. Nvidia has excelled at that, although its competition is starting to become a bit stiffer. Still, Nvidia is the go-to company in the AI computing market, and its GPUs remain the gold standard by which every other chip is compared. CoreWeave's business is more akin to a cloud computing product.

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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... Today, August 27, is Nvidia’s turning point. A new era of AI is here, and companies are fighting for your investment. On one side, you have NVIDIA, the chip giant that basically owns AI. On t...