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
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 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.
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 shares.
Pinpointing 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.
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