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NVIDIA Vs. CoreWeave: Which Stock Offers Greater AI Upside?
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Key Takeaways
NVIDIA's data center, gaming and robotics drove Q2 revenues, and net income was up 59%.
CoreWeave tripled Q2 revenues, raised full-year guidance, and cut net loss, aided by acquisitions.
NVIDIA holds $53.7B cash vs. $8.46B debt, while CoreWeave faces $22.42B liabilities and shrinking margins.
Amid the rapidly growing artificial intelligence (AI) market, NVIDIA Corporation (NVDA - Free Report) saw a significant rise in sales of data center graphics processing units (GPUs), resulting in an astonishing 33,300% increase over the past decade and boosting its market cap above $4 trillion.
Meanwhile, another AI-focused company, CoreWeave, Inc. (CRWV - 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.
Reasons to Be Bullish on NVIDIA Stock
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.
During the fiscal second quarter, CEO Jensen Huang was expected to receive authorization from the U.S. government to sell its H20 chips to China. However, NVIDIA didn’t sell any such chips to China; instead, they gained $180 million by selling H2O inventory to a customer located outside of China.
NVIDIA’s growth is fueled by its data center operations, which focus on GPUs. This division saw revenues jump 56% year over year to $41.1 billion. Major cloud providers have increased their purchase of Blackwell chips, whose sales climbed 17% from the first quarter. The sales of NVIDIA’s new product lines now represent 70% of the company’s data center revenues.
NVIDIA’s gaming division, as well as its robotics division, saw sales jump 49% and 69% on an annual basis in the fiscal second quarter. NVIDIA expects total sales growth for the current quarter to remain higher than 50%, and earnings to continue improving. In the most recent reported quarter, NVIDIA’s net income increased by 59% to $26.42 billion, up from $16.6 billion in the same quarter last year.
Reasons to Be Bullish on CoreWeave Stock
Unprecedented demand for AI helped CoreWeave register a strong second-quarter performance. CoreWeave’s revenues more than tripled from $395.4 million a year ago.
The company now sees $1.26 billion to $1.30 billion in revenues for the third quarter, and for the full year, revenues are expected to come between $5.15 billion and $5.35 billion. The full-year forecast has improved from the prior guidance of $4.9 billion to $5.1 billion.
In the second quarter, CoreWeave has been able to minimize its net loss to $290.5 million from $323 million a year ago. CoreWeave’s acquisition of Weights and Biases and its collaboration with OpenAI positively influenced its performance in the quarter.
Things may start looking brighter once CoreWeave’s data center project, located in New Jersey, is completed by 2026. CoreWeave’s underwriters in its March initial public offering (“IPO”), The Goldman Sachs Group, Inc. (GS - Free Report) and Morgan Stanley (MS - Free Report) , are now turning into customers, which is certainly a positive development.
NVIDIA or CoreWeave: Which AI Stock Has More Growth Potential?
Both NVIDIA and CoreWeave have shown commendable performance in the second quarter, with each company providing positive guidance. However, unlike NVIDIA, CoreWeave’s operating margins shrank to only 2% in the second quarter from 20% a year ago. CoreWeave is not yet a profitable business, and its operating expenses are expected to jump as it continues to increase its data centers in the United States and Europe.
CoreWeave already has a high level of debt, and its annual interest payments soared to $784 million last year from $28 million in 2022. By the end of the first half of 2025, CoreWeave’s cash and equivalents of $1.15 billion were much less than its total liabilities of $22.42 billion.
On the other hand, NVIDIA is a cash-rich company with a strong balance sheet. As of April 27, 2025, the company’s cash and cash equivalents were almost $53.7 billion, way higher than its long-term debt of $8.46 billion.
CoreWeave’s business model may not be sustainable. The company exclusively offers cloud-based GPUs for handling AI tasks. However, bigger tech players like Amazon.com, Inc.’s (AMZN - Free Report) AWS may introduce its own cloud-based GPUs at a much lower price and threaten CoreWeave’s business.
In contrast, NVIDIA is a leader in AI hardware; its CUDA software platform enjoys a competitive moat, and the company also dominates in gaming and professional visualization.
In conclusion, NVIDIA’s diverse business and robust financial standing position it as a more balanced and resilient stock, capable of more long-term growth than CoreWeave, which remains more of a speculative investment. For now, both NVIDIA and CoreWeave have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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NVIDIA Vs. CoreWeave: Which Stock Offers Greater AI Upside?
Key Takeaways
Amid the rapidly growing artificial intelligence (AI) market, NVIDIA Corporation (NVDA - Free Report) saw a significant rise in sales of data center graphics processing units (GPUs), resulting in an astonishing 33,300% increase over the past decade and boosting its market cap above $4 trillion.
Meanwhile, another AI-focused company, CoreWeave, Inc. (CRWV - 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.
Reasons to Be Bullish on NVIDIA Stock
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.
During the fiscal second quarter, CEO Jensen Huang was expected to receive authorization from the U.S. government to sell its H20 chips to China. However, NVIDIA didn’t sell any such chips to China; instead, they gained $180 million by selling H2O inventory to a customer located outside of China.
NVIDIA’s growth is fueled by its data center operations, which focus on GPUs. This division saw revenues jump 56% year over year to $41.1 billion. Major cloud providers have increased their purchase of Blackwell chips, whose sales climbed 17% from the first quarter. The sales of NVIDIA’s new product lines now represent 70% of the company’s data center revenues.
NVIDIA’s gaming division, as well as its robotics division, saw sales jump 49% and 69% on an annual basis in the fiscal second quarter. NVIDIA expects total sales growth for the current quarter to remain higher than 50%, and earnings to continue improving. In the most recent reported quarter, NVIDIA’s net income increased by 59% to $26.42 billion, up from $16.6 billion in the same quarter last year.
Reasons to Be Bullish on CoreWeave Stock
Unprecedented demand for AI helped CoreWeave register a strong second-quarter performance. CoreWeave’s revenues more than tripled from $395.4 million a year ago.
The company now sees $1.26 billion to $1.30 billion in revenues for the third quarter, and for the full year, revenues are expected to come between $5.15 billion and $5.35 billion. The full-year forecast has improved from the prior guidance of $4.9 billion to $5.1 billion.
In the second quarter, CoreWeave has been able to minimize its net loss to $290.5 million from $323 million a year ago. CoreWeave’s acquisition of Weights and Biases and its collaboration with OpenAI positively influenced its performance in the quarter.
Things may start looking brighter once CoreWeave’s data center project, located in New Jersey, is completed by 2026. CoreWeave’s underwriters in its March initial public offering (“IPO”), The Goldman Sachs Group, Inc. (GS - Free Report) and Morgan Stanley (MS - Free Report) , are now turning into customers, which is certainly a positive development.
NVIDIA or CoreWeave: Which AI Stock Has More Growth Potential?
Both NVIDIA and CoreWeave have shown commendable performance in the second quarter, with each company providing positive guidance. However, unlike NVIDIA, CoreWeave’s operating margins shrank to only 2% in the second quarter from 20% a year ago. CoreWeave is not yet a profitable business, and its operating expenses are expected to jump as it continues to increase its data centers in the United States and Europe.
CoreWeave already has a high level of debt, and its annual interest payments soared to $784 million last year from $28 million in 2022. By the end of the first half of 2025, CoreWeave’s cash and equivalents of $1.15 billion were much less than its total liabilities of $22.42 billion.
On the other hand, NVIDIA is a cash-rich company with a strong balance sheet. As of April 27, 2025, the company’s cash and cash equivalents were almost $53.7 billion, way higher than its long-term debt of $8.46 billion.
CoreWeave’s business model may not be sustainable. The company exclusively offers cloud-based GPUs for handling AI tasks. However, bigger tech players like Amazon.com, Inc.’s (AMZN - Free Report) AWS may introduce its own cloud-based GPUs at a much lower price and threaten CoreWeave’s business.
In contrast, NVIDIA is a leader in AI hardware; its CUDA software platform enjoys a competitive moat, and the company also dominates in gaming and professional visualization.
In conclusion, NVIDIA’s diverse business and robust financial standing position it as a more balanced and resilient stock, capable of more long-term growth than CoreWeave, which remains more of a speculative investment. For now, both NVIDIA and CoreWeave have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.