Nvidia (NVDA 0.80%) is one of the most valuable companies in the world, with a market cap north of $3 trillion. It's a big name in artificial intelligence (AI) due to its high-powered chips, which are used in developing AI models and chatbots. They have proven to be essential for tech companies looking to capitalize on the latest AI trends and who don't want to fall behind their rivals.
For investors, however, buying Nvidia may not seem as alluring anymore, given its high valuation. A more tantalizing option is to look at what may be the next Nvidia stock, which can have the potential to deliver significant returns.
One stock that has been scorching hot this year and that may be able to benefit from the AI hype is a company that Nvidia has also invested in: CoreWeave (CRWV +0.73%).
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What's so special about CoreWeave?
CoreWeave went public back in March, and it has amassed gains of more than 300% since then, as of this week. But at a market cap of around $80 billion, it's still relatively modest in size, at least when compared to tech giants like Nvidia.
What puts CoreWeave in the front and center of the AI revolution is that the company rents out GPU computing capacity. It gives customers access to Nvidia's chips and the resources and infrastructure they need to test and train AI models without having to make the costly infrastructure investments themselves. Its close ties with Nvidia give CoreWeave an advantage by providing customers with access to cutting-edge chips. That has resulted in some incredible growth for CoreWeave's business.
CoreWeave's sales skyrocketed last quarter
During the first three months of 2025, CoreWeave's sales totaled $981.6 million, which was a 420% year-over-year increase from the $188.7 million it generated in the same period of 2024. That's an incredible rate of growth.
CEO Michael Intrator said that "demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications."
The problem is that with such a capital-intensive business, it's not going to be easy for CoreWeave to turn a profit. Amid all that recent growth, its net loss also jumped significantly -- from $129.2 million a year ago to $314.6 million this past quarter. The tech company's operating expenses totaled more than $1 billion, and its interest costs were sizable at $263.8 million.
There's plenty of growth here, but investors should look beyond just the top line, as there are some serious question marks about the company and its prospects for profitability and if staying out of the red can even be possible anytime soon.
NASDAQ: CRWV
Key Data Points
Should you invest in CoreWeave's stock today?
CoreWeave's incredible growth has made it a hot new AI stock to own. But that alone isn't going to make it the next Nvidia, as CoreWeave will also need to show a strong bottom line as well. Until that changes, this will be a risky investment, as a lot will depend on its growth rate and how strong it proves to be in future quarters.
If there's a slowdown in the economy and tech companies scale back on AI-related spending, CoreWeave could be among the most vulnerable AI stocks to be holding, given its dependence on that strong growth. Although CoreWeave's stock is performing incredibly well in just its first few months as a public company, investors should temper expectations as this can be a highly volatile investment, even if you're bullish on AI's long-term growth.
This is a stock that will primarily appeal to investors with a high risk tolerance, and it's not one I'd buy today as there are many cheaper AI companies to consider right now.
