This AI rocket stock just posted 400% growth, and it's powered by Nvidia's engine
artificial intelligence
(AI) field, making waves on Wall Street, is
CoreWeave
, which was only publicly traded for a mere three months and has already exploded over 300% since its initial public offering, topping the S&P 500's 12% gain, as per a report.
CoreWeave: The AI Newcomer That's Beating the Market
In its latest quarter, CoreWeave saw over 400%
revenue growth
as it carved out a key position in the high-growth AI market, and its performance is comparable to tech giants like Amazon and
Nvidia
, according to The Motley Fool report.
CoreWeave's Secret Weapon
The company is booming as it is helping AI customers with something they need most right now, and that's access to high-performance computing, which is CoreWeave's main business, as reported by The Motley Fool. CoreWeave has invested in 250,000 graphics processing units (GPUs), with its network stretching over 30 data centers and offers customers the possibility to rent the computing they need for any period of time, as customers can lease on an hourly basis, according to the report.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Los ciudadanos chilenos pueden solicitar la ciudadanía estadounidense
gc programa
Undo
ALSO READ:
Craving McDonald's snack wraps? They are back — with bold new flavors you need to try
Since AI innovation usually depends on the speed at which models can be trained and put into production, CoreWeave's guarantee of increased processing speeds and uptime is a strong selling point, as per The Motley Fool report. The company claims its infrastructure reduces model training times, enabling businesses to get their AI products to market quicker, an advantage that can make all the difference between being ahead of or behind in this sizzling-hot sector, according to the report.
Live Events
This approach has also driven the company to post a triple-digit revenue gain in the recent quarter, and as the AI market is on track to reach into the trillions of dollars, this positive momentum also may continue, as reported by The Motley Fool.
Nvidia's Backing Fuels CoreWeave's Rise
A major aspect of CoreWeave's increased demand is its close association with Nvidia, the market leader of the AI boom, as per the report. Not only did CoreWeave become the first cloud provider to provide access to Nvidia's new
Blackwell architecture
earlier this year, but it has also just become the first to provide access to Nvidia's most advanced chip to date—Blackwell Ultra, according to The Motley Fool report. Even Nvidia sees potential in CoreWeave, as the AI chipmaker owns a 7% stake in CoreWeave, as per the report.
ALSO READ:
Delta shares take off as tax cuts, trade deals clear the runway for massive gains
Can This Cloud Provider Take On the Tech Giants?
Although the long-term prospect for CoreWeave appears bright because of the enormous expansion of the AI industry and its initial advantage in AI-focused cloud infrastructure, but the journey ahead might not be smooth, according to The Motley Fool report.
As CoreWeave continues to be challenged by technology giants such as Amazon, Microsoft, and Google, which have their own cloud platforms, as reported by The Motley Fool. These giants have deep pockets and loyal customer bases, and CoreWeave will need to keep innovating and demonstrating its special value to differentiate itself to maintain a share of the market, according to the report.
ALSO READ:
Inside Trump's latest blow-up on tariffs: Furious over climbdown, he goes off on inner circle
FAQs
Why does GPU access matter so much in AI?
AI models require intense computing power to train. The faster you can train, the faster you can innovate — and CoreWeave makes that easier.
How much has CoreWeave grown recently?
In its latest quarter, the company saw revenue jump over 400%, a sign of explosive demand and strong positioning in the AI market, as per The Motley Fool report.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Economists see lower recession risk and stronger job growth: WSJ survey
The economic fallout from US President Trump's policies may prove less dire than feared. Economists expect stronger growth and job creation, lower risk of recession and cooler inflation than they did three months ago, according to The Wall Street Journal's quarterly survey of professional forecasters. The reason: The Journal's previous survey was conducted at the height of the president's threats to impose eye-watering tariffs on America's biggest trading partners. He paused some of the tariffs shortly thereafter. Whether the improved mood lasts remains to be seen. This past week, Trump told numerous trading partners—including Brazil, Canada, Mexico and the European Union—that they would face much higher tariffs starting Aug. 1. Although economists' outlook improved slightly from the last survey, they still are relatively downbeat—most likely because of the persistence of trade uncertainty and muted growth to date. On average, they expect gross domestic product adjusted for inflation to grow 1% in the fourth quarter from a year earlier. That is up from an April forecast of 0.8%, but just half of what they expected in January. They see growth rebounding to 1.9% in 2026, little changed from prior surveys. On average they put the probability of recession in the next 12 months at 33%, down from 45% in April, but higher than January's 22%. 'Despite numerous headwinds, the U.S. economy is proving stubbornly resilient," said Chad Moutray, chief economist at the National Restaurant Association. 'Consumers are continuing to spend, but the mood has clearly shifted from bold to careful." The survey gathered responses from 69 economists at outfits ranging from Wall Street banks to universities to small consulting firms from July 3 to July 8. Not every forecaster answered every question. The improved outlook follows three months of generally encouraging economic data. Job growth averaged 150,000 in the past three months, better than projected in April, and the unemployment rate dipped to 4.1% in June from 4.2% in May, staying within its range of the past year. Weekly claims for initial unemployment benefits, an almost-real-time indicator of layoffs, show no cause for concern. Business and consumer sentiment, which were in free fall earlier this year, appear to have leveled off. The S&P 500 notched a record high this month. Perhaps most important, the tariff-driven inflation spike that economists widely predicted hasn't materialized. Core consumer prices, which exclude volatile food and energy components, were up 2.8% in May from a year earlier, the lowest in four years, though still higher than is consistent with the Fed's 2% target. To be sure, Trump's policies are affecting behavior. Goods imports surged 26% in the first quarter from a year earlier as consumers and firms rushed to get ahead of tariffs. After the duties took effect in April, imports plunged. Diane Swonk, chief economist at KPMG US, cautioned that official economic indicators, which combine actual data from surveys with estimates, often struggle to capture inflection points. 'As good as our stats are, they just weren't made for these kinds of very large moves in policy that cause a knee-jerk reaction," Swonk said. 'It makes it even harder to read the tea leaves." Trump's policies—which besides tariffs include a clampdown on illegal immigration, stepped-up deportations and a just-signed megabill cutting taxes and some spending—may also take time to filter into the real economy. Some Federal Reserve officials suspect companies won't raise prices until they have run down inventories amassed before tariffs took effect, according to minutes of their June meeting. The average economist in the Journal's survey expects Trump's tariff plans to add 0.7 percentage point to inflation as measured by the consumer-price index in the fourth quarter of 2025. Nonetheless, their average forecast of 3% inflation in December is down from an April forecast of 3.6%—though higher than the 2.7% predicted in January. 'While tariff hikes still seem likely to raise inflation in the second half of the year, their impact will be partially offset by less energy and shelter-cost inflation," said Bill Adams, chief economist at Comerica Bank. The ultimate level of tariffs, and thus the economic impact, remains a wild card. JPMorgan economists estimate the average U.S. tariff on May 12, after Trump rolled back levies on China, was 12.2%. Tariffs since announced on steel, aluminum, copper, Vietnam and other countries have boosted that to 14.6%, and other tariffs floated by Trump would add another 6.1 percentage points, they estimate. The labor market's outlook has also recovered since April, though not to January's level. Economists expect employers to add an average of 74,070 to payrolls per month over the coming year, up from 54,619 in April. They forecast the unemployment rate rising to 4.5% in December, down from an April projection of 4.7%. That may give the Fed a little more time before cutting its interest-rate target from its current 4.25%-to-4.5% range. On average, economists see the midpoint of that range ending the year at 3.94%, up from 3.79% in April, implying one to two quarter-point cuts this year. Economists see Trump's megabill adding 0.2 percentage point to economic growth in 2025 and 0.3 in 2026. But they also see stepped-up deportations and decreased immigration fully offsetting that, shaving 0.2 and 0.3 percentage point from annual GDP growth in 2025 and 2026, respectively. 'Immigration helped power growth significantly over the past two years," said Joel Naroff, who runs his own consulting firm. 'That will wash out going forward."
Time of India
2 hours ago
- Time of India
How to mix assets like a mad scientist and get rich quietly
For most retail investors, the word "equity" instinctively signals higher returns , and higher risk. It is commonly assumed that increasing the equity allocation in a portfolio proportionally increases its volatility . However, as counterintuitive as it may sound, this belief doesn't always hold true. Empirical data demonstrates that equity, when added judiciously to a debt-heavy portfolio, can actually reduce overall portfolio volatility while improving returns. This article explores that relationship and goes a step further, demonstrating how adding a third asset class like gold can further optimize the risk-reward profile of a portfolio. Adding equity is not equal to adding volatility Let's begin with a basic portfolio comparison. A 100% bond portfolio, over the studied period, delivered an average annual return of 7.1% with a volatility of 6.8%. However, introducing just 10% equity into the mix (i.e., 90% debt and 10% equity) improves the return to 8.2% and, quite remarkably, reduces the volatility to 6.0%. This isn't an anomaly. A 75% bond and 25% equity portfolio delivered a return of 9.3%, still maintaining a volatility of just 6.9%—almost at par with a 100% bond portfolio. Live Events This behavior is primarily due to the low correlation between debt and equity. When asset classes do not move in perfect sync, they tend to offset each other's volatility, creating a smoother return path. This phenomenon is referred to as diversification benefit, and it forms the foundation of modern portfolio theory. Introducing Gold: A third asset with distinct value The picture becomes even more compelling when a third asset class—gold—is added to the equity-debt mix. Gold is known for its negative correlation with equity and low correlation with bonds, especially during economic stress or inflationary periods. When 20% gold is introduced into a two-asset portfolio of 75% debt and 25% equity, the new three-asset portfolio (55% debt, 25% equity, 20% gold) maintains a volatility level similar to that of the 100% bond portfolio (6.8%) while achieving an average return of 11.1%. What this means is profound: investors can add a return-generating asset like gold without increasing portfolio volatility. In fact, the return-volatility curve shifts leftward, showing improved returns for the same or even lower levels of risk. The presence of gold acts as a hedge during equity drawdowns and also performs well during economic uncertainties, such as currency depreciation or geopolitical stress. The importance of diversification across market cycles An analysis of calendar-year returns between 2013 and 2024 shows that asset class leadership changes frequently. In some years, domestic equity (S&P BSE Sensex) tops the chart, while in others, gold or foreign equities outperform. For instance, gold surged in 2020 with a 28.1% return when equities were under pressure. In contrast, domestic equities delivered a 25.5% return in 2023 when gold was relatively moderate. This year-to-year rotation of performance underscores a key investment truth: it is nearly impossible to predict the top-performing asset class consistently. Relying on a single asset class exposes investors to concentration risk. Diversification across equity, debt, gold, and foreign assets ensures that while some assets may underperform, others may outperform, thereby cushioning the overall impact. The correlation advantage: How unrelated assets work in tandem A key reason why diversification works lies in the correlation matrix between asset classes. Over the observed period: Indian equity and gold had a negative correlation of -0.48 Debt had a mildly positive correlation with gold (0.05) and foreign equity (0.13) Indian equity and US equity showed a moderate positive correlation of 0.42 Constructing a sample multi-asset portfolio Based on the above observations, let's construct a diversified portfolio that balances growth, stability, and protection: 25% Indian Equity (S&P BSE Sensex TRI) 45% Debt (CRISIL Short-Term Bond Index) 25% Gold (MCX Gold) 5% US Equity (S&P 500 TRI) This portfolio is rebalanced annually. Over the period from FY2019 to FY2025, it delivered a compound annual growth rate (CAGR) of 10.7% with significantly lower volatility compared to a 100% equity portfolio. Interestingly, during years when Indian equity posted negative or flat returns, gold and debt often provided positive returns, acting as effective stabilizers. For example, in FY2023, Indian equity returned only 1.7%, but gold delivered 14.2%, and debt remained stable. The combined portfolio still managed a positive return of 3.5% that year. Final thought! The traditional notion that higher returns must come with higher volatility no longer holds water in a world where intelligent asset allocation is possible. Empirical data clearly shows that a well-balanced portfolio made of low and negatively correlated assets can offer higher returns with reduced risk. The key lies in thoughtful construction and periodic rebalancing—not speculation or market timing. (The author Chakrivardhan Kuppala is Cofounder & Executive Director, Prime Wealth Finserv Pvt. Ltd.)
News18
6 hours ago
- News18
Mercedes-Benz India's First-quarter Sales Hit Record High On Strong Demand For Top-end Models, EVs
Last Updated: "Our sharp focus on bolstering the top-end luxury (segment) has been highly successful in influencing customer preferences," Mercedes-Benz India CEO Santosh Iyer said. German luxury carmaker Mercedes-Benz said its first-quarter sales in India hit an all-time high, rising 10% to 4,238 units, on strong demand for its high-end models and electric vehicles (EVs). Demand for luxury models in India, the world's third-largest car market, has steadily risen over the last few years as rapid economic growth brought about a fundamental shift in attitude towards luxury purchases among its younger generation. Luxury car sales account for a little over 1% of India's 4 million units-a-year market. 'Our sharp focus on bolstering the top-end luxury (segment) has been highly successful in influencing customer preferences," Mercedes-Benz India CEO Santosh Iyer said. Sales of top-end models, like the S-Class and the Mercedes-Maybach portfolio, rose 20% between April and June, while EV sales jumped than two-fold to form 8% of Mercedes-Benz India's overall sales. Mercedes' core segment, which includes the C- and E-Class sedans and the GLC and GLE sports utility vehicles, grew 10% in the quarter. These cars account for 60% of the company's total sales in India. Mercedes leads sales of luxury vehicles in India, followed by BMW and Tata Motors-owned Jaguar Land Rover (JLR). It produces and assembles a handful of models, including some EVs, from its Chakan factory in the western state of Maharashtra. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
