Latest news with #CRWV
Yahoo
2 days ago
- Business
- Yahoo
Better Artificial Intelligence (AI) Stock: CoreWeave vs. Nebius
Key Points Nebius and CoreWeave have been in red-hot form on the stock market this year thanks to the terrific demand for their cloud infrastructure solutions. Both companies seem to be able to sustain their impressive growth in the long run, thanks to the lucrative AI-related market that they are serving. 10 stocks we like better than CoreWeave › CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) have witnessed a rapid jump in their share prices this year. Investors have been buying these stocks hand over fist because they are benefiting big time from the growing demand for cloud-based artificial intelligence (AI) infrastructure. CoreWeave stock has shot up a remarkable 224% in just four months since going public in March this year, and Nebius has clocked healthy gains of 84% so far in 2025. Both companies are in the business of renting out data centers powered by graphics processing units (GPUs), which their customers use to train AI models, build applications, and scale up those applications in the cloud. But if you have to choose one of these two stocks for your portfolio right now, which one should it be? Let's find out. The case for CoreWeave CoreWeave's rally since its initial public offering (IPO) can be attributed to the terrific growth in the company's revenue and backlog. Its top line jumped by more than fivefold in the first quarter to $981 million, and it's on track to sustain its outstanding momentum. That's because the cloud infrastructure-as-a-service market in which CoreWeave operates is growing at an incredible pace. Grand View Research estimates that the cloud AI market could generate $650 billion in annual revenue in 2030, nearly 7.5 times the size of this market last year. CoreWeave is capitalizing on this lucrative opportunity by offering access to the top-of-the-line GPUs from Nvidia along with server processors from AMD. The company claims that customers using its cloud AI infrastructure enjoy significant cost and performance advantages. It says its infrastructure is "purpose-built for compute-intensive workloads, and everything from our servers to our storage and networking solutions are designed to deliver best-in-class performance." The demand for the company's AI infrastructure is outpacing supply, so it is focused on scaling up its capacity quickly to satisfy the strong demand. Management said on its May earnings conference call that it has raised over $21 billion to expand infrastructure and data center capacity. The company recently announced the upcoming $9 billion acquisition of Core Scientific, which could bring another 1 gigawatt (GW) of data center capacity and help lower its costs from its existing leases with Core Scientific. CoreWeave forecasts a reduction of over $10 billion in future lease liabilities once the acquisition is complete, followed by annual run-rate cost savings of $500 million by the end of 2027. Before this acquisition was announced, CoreWeave was projecting a fourfold increase in its data center capacity under its existing capacity contracts. This focus on enhancing data center capacity should pave the way for outstanding growth for CoreWeave since it was sitting on a revenue backlog of almost $26 billion at the end of the first quarter -- 63% higher from the year-ago period. As such, analysts are expecting its revenue to continue increasing at a strong pace. CoreWeave is likely to remain a top AI stock since it is serving a fast-growing market and is investing aggressively to capture a share of it. The case for Nebius Nebius shot up impressively last week after Goldman Sachs put a 12-month price target of $68 on the stock. The investment bank said that the company's full-stack AI infrastructure, which includes hardware and software tools, allows it to make the most of the impressive opportunity in this space. Goldman's price target calls for a 31% jump in the stock in the coming year. And there is a good chance that the company could surpass that given its 385% revenue jump year over year in the first quarter to $55 million. More importantly, the growth in its annual revenue run rate was much faster at 684% year over year to $249 million. That improved to $310 million in April, and the company forecasts an annual revenue run rate of $750 million to $1 billion by the end of the year, driven by the new data center capacity it is planning. In a letter to shareholders, CEO Arkady Volozh said: We are rapidly expanding our capacity footprint. In just three quarters, we've gone from one location in Finland to five locations across Europe, the U.S., and now the Middle East. We are actively exploring new sites in the U.S. and around the world, and we expect to provide more news on this soon. Unlike CoreWeave, Nebius provides more than just AI hardware infrastructure to customers. Its cloud platform also offers developer tools and services that customers can employ to refine their AI models, run inference tasks, and develop custom solutions. This is why Goldman believes that Nebius could be a leader in the cloud AI space. The company's balance sheet -- with $1.45 billion in cash and $188 million in debt -- allows it to continue putting more money into its cloud infrastructure. This explains the healthy top-line growth it is projected to deliver. So, like CoreWeave, Nebius is likely to remain a high-growth company. But is it a better buy than its larger peer at this point? The verdict Both CoreWeave and Nebius are growing at healthy rates and are expected to sustain that. So, investors should look at their valuations to decide which is the better buy. The two companies aren't profitable right now considering their aggressive infrastructure investments, so we need to compare their price-to-sales ratios (P/S). Nebius stock is way more expensive than CoreWeave when comparing sales multiples, indicating that the latter is a better buy even after its strong rally this year. Moreover, CoreWeave is growing faster, has a huge backlog, and is sitting on ample resources to continue expanding its data center footprint, making it the easy choice for investors considering which of these two AI stocks is worth adding to their portfolios right now. Should you buy stock in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Goldman Sachs Group, and Nvidia. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy. Better Artificial Intelligence (AI) Stock: CoreWeave vs. Nebius was originally published by The Motley Fool
Globe and Mail
2 days ago
- Business
- Globe and Mail
Better Artificial Intelligence (AI) Stock: CoreWeave vs. Nebius
Key Points Nebius and CoreWeave have been in red-hot form on the stock market this year thanks to the terrific demand for their cloud infrastructure solutions. Both companies seem to be able to sustain their impressive growth in the long run, thanks to the lucrative AI-related market that they are serving. 10 stocks we like better than CoreWeave › CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) have witnessed a rapid jump in their share prices this year. Investors have been buying these stocks hand over fist because they are benefiting big time from the growing demand for cloud-based artificial intelligence (AI) infrastructure. CoreWeave stock has shot up a remarkable 224% in just four months since going public in March this year, and Nebius has clocked healthy gains of 84% so far in 2025. Both companies are in the business of renting out data centers powered by graphics processing units (GPUs), which their customers use to train AI models, build applications, and scale up those applications in the cloud. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » But if you have to choose one of these two stocks for your portfolio right now, which one should it be? Let's find out. The case for CoreWeave CoreWeave's rally since its initial public offering (IPO) can be attributed to the terrific growth in the company's revenue and backlog. Its top line jumped by more than fivefold in the first quarter to $981 million, and it's on track to sustain its outstanding momentum. That's because the cloud infrastructure-as-a-service market in which CoreWeave operates is growing at an incredible pace. Grand View Research estimates that the cloud AI market could generate $650 billion in annual revenue in 2030, nearly 7.5 times the size of this market last year. CoreWeave is capitalizing on this lucrative opportunity by offering access to the top-of-the-line GPUs from Nvidia along with server processors from AMD. The company claims that customers using its cloud AI infrastructure enjoy significant cost and performance advantages. It says its infrastructure is "purpose-built for compute-intensive workloads, and everything from our servers to our storage and networking solutions are designed to deliver best-in-class performance." The demand for the company's AI infrastructure is outpacing supply, so it is focused on scaling up its capacity quickly to satisfy the strong demand. Management said on its May earnings conference call that it has raised over $21 billion to expand infrastructure and data center capacity. The company recently announced the upcoming $9 billion acquisition of Core Scientific, which could bring another 1 gigawatt (GW) of data center capacity and help lower its costs from its existing leases with Core Scientific. CoreWeave forecasts a reduction of over $10 billion in future lease liabilities once the acquisition is complete, followed by annual run-rate cost savings of $500 million by the end of 2027. Before this acquisition was announced, CoreWeave was projecting a fourfold increase in its data center capacity under its existing capacity contracts. This focus on enhancing data center capacity should pave the way for outstanding growth for CoreWeave since it was sitting on a revenue backlog of almost $26 billion at the end of the first quarter -- 63% higher from the year-ago period. As such, analysts are expecting its revenue to continue increasing at a strong pace. CRWV Revenue Estimates for Current Fiscal Year; data by YCharts. CoreWeave is likely to remain a top AI stock since it is serving a fast-growing market and is investing aggressively to capture a share of it. The case for Nebius Nebius shot up impressively last week after Goldman Sachs put a 12-month price target of $68 on the stock. The investment bank said that the company's full-stack AI infrastructure, which includes hardware and software tools, allows it to make the most of the impressive opportunity in this space. Goldman's price target calls for a 31% jump in the stock in the coming year. And there is a good chance that the company could surpass that given its 385% revenue jump year over year in the first quarter to $55 million. More importantly, the growth in its annual revenue run rate was much faster at 684% year over year to $249 million. That improved to $310 million in April, and the company forecasts an annual revenue run rate of $750 million to $1 billion by the end of the year, driven by the new data center capacity it is planning. In a letter to shareholders, CEO Arkady Volozh said: We are rapidly expanding our capacity footprint. In just three quarters, we've gone from one location in Finland to five locations across Europe, the U.S., and now the Middle East. We are actively exploring new sites in the U.S. and around the world, and we expect to provide more news on this soon. Unlike CoreWeave, Nebius provides more than just AI hardware infrastructure to customers. Its cloud platform also offers developer tools and services that customers can employ to refine their AI models, run inference tasks, and develop custom solutions. This is why Goldman believes that Nebius could be a leader in the cloud AI space. The company's balance sheet -- with $1.45 billion in cash and $188 million in debt -- allows it to continue putting more money into its cloud infrastructure. This explains the healthy top-line growth it is projected to deliver. NBIS Revenue Estimates for Current Fiscal Year; data by YCharts. So, like CoreWeave, Nebius is likely to remain a high-growth company. But is it a better buy than its larger peer at this point? The verdict Both CoreWeave and Nebius are growing at healthy rates and are expected to sustain that. So, investors should look at their valuations to decide which is the better buy. The two companies aren't profitable right now considering their aggressive infrastructure investments, so we need to compare their price-to-sales ratios (P/S). NBIS PS Ratio (Forward); data by YCharts. Nebius stock is way more expensive than CoreWeave when comparing sales multiples, indicating that the latter is a better buy even after its strong rally this year. Moreover, CoreWeave is growing faster, has a huge backlog, and is sitting on ample resources to continue expanding its data center footprint, making it the easy choice for investors considering which of these two AI stocks is worth adding to their portfolios right now. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
3 days ago
- Business
- Yahoo
CoreWeave vs. Amazon: Which AI Infra Stock Has More Upside Right Now?
Both CoreWeave CRWV and Amazon AMZN, through the Amazon Web Services platform, provide cloud infrastructure tailored for AI workloads. CoreWeave provides specialized GPU-accelerated infrastructure for AI through its 33 data centers, supported by 420 megawatts of active power, spread across the United States and Europe. It recently announced a $6 billion investment to set up a new data center in Lancaster, PA, with an initial capacity of 100 megawatts (MW) and a potential to scale up to 300MW. On the other hand, Amazon's AWS is a structurally dominant force in the cloud space (and is also making aggressive inroads in the AI infra space) and commands a leading share of the cloud market, followed by Microsoft and Google Cloud. Increased spending on AI infrastructure benefits both Amazon and CoreWeave, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let's break down how each company is performing and which one looks like the better investment right now. CoreWeave: A Fast-Growing Pure-Play AI Infra Provider CoreWeave is well-positioned to gain from the AI infrastructure boom. In the last earnings call, management highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. Strategic partnerships with major players like OpenAI and NVIDIA bode well, along with a massive $259 billion revenue backlog. Apart from a $11.9 billion deal with OpenAI, CRWV has added several new enterprise customers and a hyperscaler client. It has signed expansion agreements with many customers, including a $4 billion expansion with a big AI-enterprise customer. CRWV added that the $4 billion expansion agreement signed with a big AI client will be reflected in revenue backlog beginning in the second quarter. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. The stock has declined sharply post its announcement of $9 billion takeover of Core Scientific. Since the announcement on July 7, CRWV has lost nearly 25%. Apart from scrutiny surrounding the company's latest acquisition bid, it also faces other headwinds. CRWV's aggressive capital deployment strategy is a key concern. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. High capex, even with a success-based model, exposes CoreWeave to execution risks if contract revenue does not materialize on time. CoreWeave's aggressive data center buildout is being funded in part by debt, leading to ballooning interest expenses, which can exert pressure on the adjusted net income and potentially affect free cash flow generation. Stiff competition from the likes of AWS and Azure, and intense customer concentration risk remain concerning. CoreWeave's 77% of total revenues in 2024 came from the top two customers. Amazon: Aggressive Expansion AWS is the market leader in the cloud compute space and is now aggressively moving into AI infrastructure. To stay ahead of rivals, Amazon has launched custom AI chips (Trainium and Inferentia) and strengthened partnerships with the likes of NVIDIA while forging new collaborations with other AI developers to train and deploy models on AWS. AWS revenues surged 17% year over year in the first quarter of 2025, with an annualized revenue run rate pegged at $117 billion. AWS backlog reached $189 billion with a 4.1-year weighted average life, offering forward revenue visibility. In the last reported quarter, AWS signed new agreements with major companies, including Ericsson, Adobe, Uber Technologies, Nasdaq, Fujitsu and many others. Amazon highlighted that more than 85% of global IT spending is still on-premises, suggesting immense growth potential for AWS. Its increasing investments in generative AI are likely to continue aiding it in gaining momentum among cloud customers in the near term. More importantly, Amazon's AI business segment now operates at a multi-billion-dollar annual revenue run rate with triple-digit percentage growth year over year. Amazon's strategy focuses on custom silicon development, particularly its Trainium 2 chips, which offer 30-40% better price performance compared to GPU-based instances. The company has also expanded its AI model offerings through Amazon Bedrock and introduced services like Amazon Nova foundation models. AMZN has added the latest foundation models in Amazon Bedrock, including Anthropic's Claude 3.7 Sonnet, Meta's Llama 4 family of models, DeepSeek's R1 and Mistral AI's Pixtral Large. AMZN is ramping up investment to build its technology infrastructure, primarily related to AWS and for custom silicon like Trainium. Moreover, its diversified businesses and stupendous financial resources give it an edge. As of March 31, 2025, cash and cash equivalents were $66.2 billion, while operating cash flow generated in the first quarter stood at nearly $17 billion. However, capacity constraints pose a challenge. Amazon has indicated that AI demand currently outstrips available capacity, suggesting the company could drive higher revenues with additional infrastructure. The intense competition from Microsoft's Azure and Google Cloud is concerning. Heavy capex spend could strain margins if AI returns do not materialize. CRWV Shares vs. AMZN Over the past month, AMZN shares have gained 6.9% while CRWV stock has lost 24.1%. Image Source: Zacks Investment Research Valuation for CRWV & AMZN Valuation-wise, both Amazon and CoreWeave are overvalued, as suggested by the Value Score of D and F, respectively. Image Source: Zacks Investment Research In terms of Price/Book, CRWV shares are trading at 30.22X, lower than AMZN's 8.06X. How Do Zacks Estimates Compare for CRWV & AMZN? Analysts have kept their earnings estimates unchanged for CRWV's bottom line for the current year. Image Source: Zacks Investment Research For AMZN, there is a marginal upward revision. Image Source: Zacks Investment Research CRWV or AMZN: Which is a Better Pick? Amazon remains a more stable and diversified AI cloud/infra bet, with AWS as a high growth engine. AWS is well poised to benefit from AI demand at a massive scale, as it aggressively improves on specialization. CRWV gains from niche specialization in AI infrastructure and strategic alignment with major AI players, but is capital-intensive. AMZN currently sports a Zacks Rank #1 (Strong Buy) while CRWV has a Zacks Rank #4 (Sell). If investors are seeking an AI infrastructure stock with long-term growth potential, Amazon is a better pick in terms of Zacks Rank. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Jim Cramer Says 'I think I like CoreWeave'
CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks that Jim Cramer shared thoughts on. A caller asked what Cramer thinks of the company, and in response, he said: 'Alright, I think I like CoreWeave and I like Michael Intrator, but I would say the stock is $60 billion, and it's going to have to come down and cool off a little bit. There are too many shorts in it. The shorts are covering right now. Once they're finished covering, I think the stock does drop, and you can take a look at it.' A futuristic datacenter with servers and high-tech equipment, signifying the company's cutting-edge digital technology. CoreWeave (NASDAQ:CRWV) provides a cloud platform designed to scale and accelerate generative AI workloads, delivering GPU and CPU compute, storage, networking, and managed services. The company also supports AI training, rendering, and dataset optimization through specialized tools and infrastructure. During a June episode, Cramer called the stock 'overbought.' He commented: 'I think it is overbought. I think it's up on a short squeeze. I think the stock is just way too high. I mean, look at this. I mean, prices at $40, it should have never priced there when it did its IPO. People didn't like it. They didn't understand the balance sheet. Lots of hedge funds got shorted here, thinking that this thing really was not worth anything at all. I recommended buy it the whole darn time. The whole darn time. While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
CRWV Stock Alert: This Analyst Warns CoreWeave Could Plunge 70% From Here
CoreWeave (CRWV) is back in the spotlight following a very bearish note from HSBC analyst Abhishek Shukla, who initiated coverage with a $32 price target, implying a staggering 75% fall from current levels. The analyst issued a 'Sell' recommendation on the red-hot AI infrastructure play, sending shares down over 6% intraday on July 18. The fall occurs at a critical time for CoreWeave. It has risen over 240% since its IPO in March, driven in general by AI infrastructure hype and by blockbuster OpenAI and Microsoft (MSFT) partnerships. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Should You Buy the Post-Earnings Dip in Lockheed Martin Stock? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Yet with escalating costs, high-capital needs, and deep customer concentration, some analysts now believe the run higher has gone too far. About CoreWeave Stock CoreWeave (CRWV) is a Livingston, New Jersey cloud computing company focused on supporting high-performance computing workloads. It is an 'AI Hyperscaler' offering customized infrastructure-as-a-service with support for some of the market's toughest compute demands. It has a market capitalization approaching $60 billion. CRWV stock has been a roller coaster since going public in March 2025. The stock hit a high of $187.00, a rise of well over 400% above the IPO price, only to correct sharply in the last few weeks. The stock is currently trading near $130, down about 30% from its highs. CoreWeave operates with high valuation multiples. It carries a price-sales ratio of 21.5x and a price-book ratio of 28.1x. The HSBC downgrade and warning is an indicator of valuation risk due to a lack of earnings and a capital-intensive business model. CoreWeave Misses on Earnings CoreWeave's Q1 2025 results were a mixed bag. It had revenue of $981.6 million, representing a year-over-year growth rate of 420%. However, its GAAP net loss of $314.6 million was more than twice as wide as the figure in the prior-year quarter. The operating loss during the quarter was $27.5 million, 263% worse than the prior year. Stock-based compensation during the quarter was $177 million, heavily weighing on net profitability after its IPO. The company also promoted new infrastructure installations, support for the GPU chip NVIDIA GB200, and Platinum status in SemiAnalysis's ClusterMAX GPU cloud rankings. Although these enhance its technical superiority, future funding needs for these initiatives are making risk-conscious investors nervous. What Do Analysts Expect for CoreWeave Stock? CoreWeave has a 'Hold' rating consensus, and HSBC's $32 target is the lowest on the Street. The average analyst target price for CoreWeave stands at $90.58, indicating 30% downside from the current price. It is highest at $185 implies more than 40% upside from here. Such wide ranges for price targets are an indication of extreme disagreement over direction and valuation. This appears to be true for CoreWeave after its red-hot post-IPO run up. On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
