Nvidia has ownership stakes in “neocloud” companies Nebius Group and CoreWeave, with CoreWeave showing stronger long-term growth prospects. Wall Street predicts CoreWeave’s revenue to triple in the next few years, potentially leading to profitability. Financial services firms managing $100 million in stocks must file a form 13F with the SEC quarterly, detailing stock transactions.

Nvidia’s recent 13F filing reveals investments in six stocks, including Nebius Group and CoreWeave. CoreWeave, a key player in the AI infrastructure market, offers a neocloud model, attracting high-profile clients and billion-dollar deals. CoreWeave’s revenue for the quarter ended March 31 reached $982 million, up 420% year over year, with a widened net loss.

CoreWeave’s revenue growth and increased capital expenditures show potential for future profitability. Wall Street’s estimates suggest that CoreWeave’s investments in Nvidia’s Blackwell GPU architecture could drive accelerated growth. Despite trading at a premium compared to Oracle, CoreWeave’s growth potential justifies investor excitement and optimism.

Investing in CoreWeave stock at different price points over the long term through dollar-cost averaging may mitigate risks. As a dominant player in AI infrastructure, CoreWeave presents a compelling opportunity for investors looking to capitalize on the AI narrative. The Motley Fool’s top 10 stock picks may include CoreWeave, reflecting its growth potential and market positioning.

Read more at Yahoo Finance: If I Could Buy Only 1 Nvidia-Backed Data Center Stock, This Would Be It (Hint: It’s Not Nebius)