Investors Are Flocking to AI Stocks—But Here’s Why Nvidia Remains the Top Pick Despite CoreWeave’s Skyrocketing Debut
CoreWeave is grabbing headlines for massive stock gains, but Nvidia’s AI dominance and diversified strength still make it the best AI investment.
- CoreWeave shares soared 185% in the last month; up 270% since March IPO
- Nvidia’s data center revenue jumped 73% year-over-year in Q1 2025
- CoreWeave’s top two customers account for 77% of its 2024 revenue
- Nvidia holds a P/E ratio of 30 vs. CoreWeave’s lofty P/S ratio of 30
Just months into 2025, artificial intelligence investment feels like a rocket counting down to liftoff. While Nvidia has enchanted Wall Street for years, CoreWeave—a once-quiet AI hyperscaler—has exploded onto the scene, seeing its stock rocket by triple digits since its recent IPO. Investors feel the gold rush. But peel back the hype, and Nvidia’s hold on AI infrastructure is only tightening, even as the parade for CoreWeave gets louder.
Is CoreWeave Outpacing Nvidia in the AI Boom?
CoreWeave’s rollercoaster rise is hard to ignore. In barely a month, the company’s market value has nearly tripled. CoreWeave’s public debut in March was electric, outpacing even Nvidia’s remarkable 24% gain in the same 30 days.
The cause: CoreWeave’s unique position leasing enormous amounts of Nvidia-powered cloud computing to data-hungry enterprises. With 250,000 Nvidia chips at its disposal, CoreWeave fuels the next generation of AI training and research. Major customers—like Microsoft—are clamoring for these high-performance resources, driving demand for CoreWeave’s services like never before.
But this rocket has risks. In 2024, two customers—one being Microsoft—generated a staggering 77% of CoreWeave’s revenue. Customer concentration this high can spook long-term investors. Unlike the diversified base boasted by Nvidia, CoreWeave remains heavily reliant on a handful of mega-clients.
How Is Nvidia Still Leading the AI Charge?
Even as CoreWeave races ahead, Nvidia’s fundamentals—and vision—remain robust. After a breakneck two years, the company’s data center sales growth slowed to 10% quarter-over-quarter in early 2025. Yet compared to last year, Nvidia’s data center revenue still rocketed 73%. Analysts and management both agree: the wave of AI demand has yet to crest.
But Nvidia’s strength isn’t just in hardware. Its ecosystem spans far: from CUDA software and high-speed interconnects to powering innovations like Nintendo’s upcoming Switch 2 console. As every AI “factory” and server farm springs to life, they’re likely running on Nvidia tech.
And there’s more. Nvidia is not just selling the “picks and shovels” for the AI boom—they’re investing in the gold miners, too. Nvidia owns a stake in CoreWeave itself, reinforcing a cycle where every CoreWeave expansion fuels Nvidia’s growth engine. When CoreWeave leases out new megawatts of data center capacity—backed by operator Applied Digital—it’s Nvidia chips filling those racks.
What Are the Biggest Risks in Choosing CoreWeave Over Nvidia?
CoreWeave’s meteoric stock run means it isn’t a bargain. Trading at a price-to-sales ratio near 30, investor patience is required—profitability is still a hope, not a reality. Meanwhile, Nvidia’s price-to-earnings ratio sits at a more grounded 30, supported by real profits and a track record of navigating tech cycles.
CoreWeave is also burning massive amounts of capital to keep pace with demand. The company spent as much as its entire cash position on capital expenditures in just the first quarter of 2025. If customers jump ship or pivot to their own AI infrastructure, CoreWeave could suddenly be left holding the bag.
Which AI Stock Is the Smarter Buy for 2025?
Nvidia isn’t losing steam; it’s shifting to a new gear. As cloud providers, enterprises, and consumer tech continue to adopt AI, Nvidia’s reach grows ever broader. It’s positioned not only to supply the arms race of AI innovation but to profit from its hottest competitors.
CoreWeave’s trajectory is thrilling, but investors face a lottery ticket packed with risk. The safer, more predictable path still leads through Nvidia—backed by its diversified revenue, influential tech, and stake in upstarts like CoreWeave.
Q&A: AI Investing 2025
Q: Should I jump into CoreWeave now?
A: Only if you thrive on high risk! The stock is volatile, customer concentration is high, and profitability is unproven.
Q: Can Nvidia still grow from here?
A: Absolutely. Data center revenue remains on the rise and the AI market is just warming up.
Q: Which companies partner most with Nvidia?
A: Microsoft, Nintendo, CoreWeave, and a host of cloud and enterprise providers use Nvidia chips and software.
How to Capitalize on the AI Stock Boom
- Monitor Nvidia’s quarterly earnings and AI adoption trends
- Evaluate CoreWeave’s customer base and risk before diving in
- Keep an eye on cloud infrastructure growth and new data center projects
- Watch for moves from giants like Microsoft and Nintendo in AI
Stay ahead in AI investing—choose wisely, diversify, and focus on the tech leaders shaping tomorrow.
Checklist to Ride the AI Wave:
- Research stock fundamentals and trends
- Balance risk with blue-chip AI innovators
- Track data center and cloud expansion news
- Don’t chase hype—look for proven profit power
