CRWV vs. PLTR vs. NVDA: Which Is the Best AI Stock to Buy Now, According to Analysts?

Business Insider

7 hours ago

The stock market remains volatile due to geopolitical tensions and macro uncertainty, raising concerns about a potential slowdown in AI (artificial intelligence) spending. Nonetheless, Wall Street remains confident about several AI stocks, given the massive growth opportunity in the generative AI space over the long term. Using TipRanks' Stock Comparison Tool, we placed CoreWeave (CRWV), Palantir Technologies (PLTR), and Nvidia (NVDA) against each other to find the best AI stock, according to Wall Street analysts.
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CoreWeave (NASDAQ:CRWV) Stock
CoreWeave, a cloud provider that specializes in AI infrastructure, is experiencing strong traction for its offerings amid the ongoing AI boom. The company has been in the news for its strategic deals. Notably, CoreWeave struck a $11.9 billion 5-year cloud computing contract with ChatGPT-maker OpenAI. The two AI companies also signed an expanded agreement of up to $4 billion to meet the growing demand for high-performance computing.
Furthermore, CoreWeave is reportedly powering the recently announced cloud deal between Alphabet's Google (GOOGL) and OpenAI. CRWV stock has rallied by a staggering 359% from its IPO (initial public offering) price of $40.
Is CRWV a Good Stock to Buy?
Recently, Bank of America analyst Bradley Sills downgraded CoreWeave stock to Hold from Buy on valuation concerns, following the stellar rally in the AI infrastructure stock in reaction to the Q1 earnings. The 4-star analyst highlighted that CRWV stock is trading at an elevated valuation of 2027 EV/EBIT (enterprise value-to-earnings before interest and taxes) of 25x.
While Sills noted several positives, like the expansion of CoreWeave's partnership with OpenAI and impressive revenue momentum, he pointed out the company's huge capital expenditure ($46.1 billion through 2027). Consequently, the analyst expects $21 billion of negative free cash flow through 2027.
Turning to Wall Street, CoreWeave stock scores a Moderate Buy consensus rating based on six Buys, 11 Holds, and one Sell recommendation. The average CRWV stock price target of $78.53 indicates a significant downside risk of 57.2% from current levels.
Palantir Technologies (NASDAQ:PLTR) Stock
Data analytics company Palantir Technologies is considered one of the hottest AI stocks. PLTR stock has rallied more than 81% so far in 2025. The company's revenue is growing at a rapid pace across its Government and Commercial businesses. Palantir's AIP (Artificial Intelligence Platform) offering is bolstering its business.
Palantir's market-beating first-quarter results reinforced the strength of its AI-powered offerings. Notably, Q1 2025 revenue increased by 39% year-over-year to $884 million, while adjusted EPS (earnings per share) jumped 62%. Additionally, the company raised its full-year guidance, as it believes that it is in the 'middle of a tectonic shift' in the adoption of its software, mainly in the U.S.
Is Palantir Stock a Buy?
While several analysts are cautious on Palantir stock due to its lofty valuation, Loop Capital analyst Mark Schappel reiterated a Buy rating and boosted the price target from $130 to a Street-high of $150. Following a meeting with management, the 5-star analyst stated that he is more convinced about PLTR's AI growth story and his bullish investment thesis.
Schappel believes that Palantir is an early software leader in enterprise AI, which he thinks is at a 'tipping point,' as small-scale pilots move into production and AI use cases increase exponentially across all industries. Trading at 48x EV/2027 revenue, the analyst agrees that PLTR stock is 'not for the faint of heart.' That said, he contends that investors should look at the big picture, which indicates that Palantir is exposed to a massive AI opportunity.
With 10 Holds, three Buys, and four Sells, Wall Street has a Hold consensus rating on Palantir Technologies stock. The average PLTR stock price forecast of $104.27 indicates a possible downside of 24.1% from current levels.
Nvidia (NASDAQ:NVDA) Stock
After a tough start to the year due to concerns about rising competition in the AI space, chip export restrictions, and tariff woes, Nvidia stock has recovered 21% over the past three months and is up 7.1% year-to-date. While uncertainty around chip exports and competition from custom AI chips remain an overhang, the semiconductor giant continues to gain from robust demand for its GPUs (graphics processing units) in the AI space, as reflected in the market-beating first-quarter results.
Looking ahead, the demand for NVDA's Blackwell platform is expected to boost its top-line growth. Moreover, the company's focus on 'sovereign AI,' which it defines as a country's ability to develop and deploy AI, could drive its revenue higher. In this regard, Nvidia's lucrative deals, like the recently announced agreement with Saudi Arabia and Germany, are worth noting.
Is Nvidia Stock a Buy, Hold, or Sell?
Earlier this month, Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $180. Following a meeting with management, the 5-star analyst noted that the tone of the team was very positive regarding demand for Nvidia's products and continued customer interest across cloud and enterprise, backed by a full-scale supply ramp.
Arya believes that management addressed three key investor debates that have been weighing on NVDA stock over the past year – Blackwell rack ramp and execution, AI diffusion and sovereign demand, and China AI shipments. The analyst stated that Nvidia stock remains a top sector pick for Bank of America, as it is 'best positioned' to benefit from the ongoing AI boom, bolstered by a multi-year lead in 'performance (AI scaling), pipeline, incumbency, scale, and developer support.'
Despite near-term challenges, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 35 Buys, four Holds, and one Sell recommendation. The average NVDA stock price target of $173.19 indicates 20.4% upside potential from current levels.
Conclusion
Wall Street is highly bullish on Nvidia stock, cautiously optimistic on CoreWeave, and sidelined on Palantir stock. Currently, analysts forecast further upside in chip giant Nvidia's stock while they see possible downside risk in the other two AI stocks. The optimism of most analysts on Nvidia stock is backed by its strong fundamentals, robust demand for its AI chips, continued innovation, and solid execution.