CoreWeave Stock Skyrockets 270% After IPO, But Nvidia Still Leads the AI Revolution—Here’s Why Investors Shouldn’t Jump Ship Yet
AI infrastructure stocks soar as Nvidia and CoreWeave ride the generative AI wave—find out which stock offers better value in 2025.
- CoreWeave shares soared 270% since IPO in late March 2025
- Nvidia’s data center revenue up 73% year-over-year last quarter
- CoreWeave’s top two customers drove 77% of 2024 revenue
- Nvidia P/E ratio: 30; CoreWeave P/S ratio: 30
The artificial intelligence (AI) gold rush continues to reshape Wall Street, with both established giants and bold newcomers reaping rewards. Nvidia, once the sole superstar of AI infrastructure, now faces fierce competition from CoreWeave—a fast-rising hyperscaler captivating investors and headlines alike.
CoreWeave stunned markets in 2025, with shares climbing a jaw-dropping 270% since its IPO this spring. Nvidia, meanwhile, posted a modest but still impressive 24% gain in the same timeframe. As CoreWeave’s revenue explodes, many investors are wondering: Is it time to ditch Nvidia for this red-hot disruptor?
Let’s break down the data, risks, and real opportunities behind these AI titans—and reveal why Nvidia remains the stock to watch.
Q: Is the AI Boom Losing Steam for Nvidia?
Not even close. Yes, Nvidia’s explosive growth rate has cooled from “rocket ship” to “jetliner”—but the trajectory remains upward. Its data center segment, the engine of its AI business, saw a 73% year-over-year revenue leap in Q1 2025. The sequential quarterly growth slowed to 10%, surprising some, but management projects further revenue gains in the quarters ahead.
Nvidia’s influence keeps growing. Its chips, interconnects, and CUDA software fuel everything from enterprise AI infrastructure to Nintendo’s next-generation Switch 2 console, reportedly turbocharging gaming with real-time AI enhancements.
Q: What’s Driving CoreWeave’s Meteoric Ascent?
CoreWeave is no flash in the pan. The company rents out massive computing power—powered largely by Nvidia’s chips—to enterprises scrambling to launch new AI models and tools. Recent partnerships and fresh capital infusions show venture capitalists and the market believe in CoreWeave’s breakout potential.
In June 2025, CoreWeave inked a 15-year lease with Applied Digital for 250 megawatts of new data center power, with an option to add even more. Demand for AI “compute factories” is skyrocketing, and CoreWeave is racing to capture as much as possible.
How to Assess the Risks: CoreWeave vs Nvidia
Both stocks ride the AI wave, but their risk profiles sharply diverge.
– CoreWeave’s sizzle comes with serious concerns:
– 77% of its revenue in 2024 came from just two customers (Microsoft being nearly two-thirds).
– Aggressive spending and sky-high valuations (P/S of 30) bode for volatility if AI demand cools or big clients jump ship.
– Nvidia operates from a position of strength:
– Its ecosystem touches every layer of AI—from hardware to software.
– The company already profits handsomely, trades at a P/E of 30, and crucially, earns repeat business every time a CoreWeave—or its rivals—buys more GPUs.
Q: Should You Buy Nvidia or CoreWeave in 2025?
AI demand keeps rising, fueling both Nvidia and CoreWeave. Yet Nvidia’s established profitability, diverse customer base, and strategic investments (it holds a stake in CoreWeave itself) tilt the scales. As CoreWeave expands, Nvidia profits grow in parallel.
While upstarts like CoreWeave add excitement, auction-level valuations and heavy client reliance make them a riskier bet for 2025 investors. Nvidia, meanwhile, stands to reap rewards no matter which AI company wins the next big deal.
To explore more about the AI landscape, visit Nvidia, Microsoft, or check global market trends on Reuters and WSJ.
Ready to Ride the AI Wave?
- Evaluate company revenue sources—diversity is key
- Keep an eye on valuation ratios and real profits vs. hype
- Watch for customer concentration risks
- Look for stocks that benefit as the entire sector expands
- Balance bold bets with proven winners like Nvidia
Stay alert for market shifts—and make your next move before the next AI surge hits.
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