CoreWeave has emerged as a hot AI stock, but it’s premature to dub it the “next Nvidia.” Nvidia’s revenue and EPS have grown significantly from fiscal 2015 to fiscal 2025 due to its dominance in data center GPUs. CoreWeave, with its focus on cloud-based GPUs for AI tasks, is showing impressive growth potential, but faces challenges in profitability and competition. Nvidia remains a safer bet for investing in the AI market.

CoreWeave, initially a crypto miner, transitioned to AI tasks with Nvidia’s GPUs, impressing Nvidia enough to invest $100 million in 2023 and $250 million in its recent IPO. Despite rapid growth in revenue, with $2.19 billion in the first half of 2025, CoreWeave’s net losses widened. Its success hinges on whether it can sustain its business model and manage increasing debt levels.

With 33 data centers and top clients like OpenAI and Meta, CoreWeave’s revenue is expected to rise to $5.25 billion for the year. But its net losses and reliance on debt raise concerns about its long-term sustainability. While CoreWeave offers speculative growth potential in the AI market, it may not match the monumental gains of Nvidia.

Before investing in CoreWeave, consider the risks and potential rewards. The Motley Fool’s Stock Advisor team has identified 10 stocks poised for significant returns, with CoreWeave not making the cut. Past recommendations like Netflix and Nvidia have yielded substantial profits. While CoreWeave offers growth prospects, its valuation and financial challenges make it a riskier investment compared to established players like Nvidia.

Read more at Nasdaq: Is This Artificial Intelligence (AI) Stock the Next Nvidia?