CoreWeave vs. Nvidia: Which AI Stock is the Better Investment?
The rapid ascent of CoreWeave stock since its late March IPO has left investors wondering if the hype is justified or if the company is a superior AI investment compared to chip giant Nvidia. Currently trading over $170 a share, CoreWeave's asking price tops Nvidia's at around $146.
CoreWeave & Nvidia Partnership Overview
CoreWeave has become Nvidia's top GPU cloud partner, surpassing traditional hyperscalers like Amazon, Microsoft, and Alphabet. With expertise in cutting-edge cloud services optimized for AI workloads, CoreWeave gained early access to Nvidia's high-performance GPUs, including the coveted Blackwell chips. The partnership has helped Nvidia's 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.
Nvidia's Stake in CoreWeave
Thanks to its successful partnership with Nvidia, CoreWeave has attracted major clients including OpenAI, Meta Platforms, and Microsoft. Notably, Microsoft accounted for 62% of CoreWeave's revenue in 2024. Being CoreWeave's major GPU supplier and an early investor, 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 Growth
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. 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.
CRWV & NVDA EPS Revisions
Although 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.
As 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.
Conclusion & Final Thoughts
CoreWeave 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.
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