CoreWeave's (CRWV 2.71%) stock went public nearly a year ago, back in March 2025. It has been a key stock for artificial intelligence (AI) investors to focus on, due to its close relationship with Nvidia (NVDA 1.53%). It gives companies access to compute power and Nvidia's leading chips, thus making it an attractive investment if you're bullish on the AI trade and Nvidia's continued dominance.
Nvidia has also invested in CoreWeave. Recently, it also increased its stake in the business by $2 billion. The sign of confidence has given CoreWeave's stock a big bump, and it's now up 26% since the start of the year. Should you buy the AI stock as well?
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Does a deeper partnership with Nvidia make CoreWeave a safer stock to invest in?
By adding another $2 billion in CoreWeave stock (approximately 23 million shares), Nvidia has nearly doubled its stake in the business, making it the second-largest investor in the tech company. The cash flow will help CoreWeave build out more capacity and data centers, positioning it for better growth opportunities due to AI.
But whether that makes the stock a safer investment is debatable. CoreWeave has struggled to generate profits, despite amassing incredible top-line growth. During the first nine months of 2025, the company's revenue tripled to $3.6 billion, but its net loss of $715 million was just 12% smaller than the $812 million loss it incurred over the same period a year ago.
NASDAQ: CRWV
Key Data Points
CoreWeave's stock may still be vulnerable to a significant correction
While CoreWeave's stock has been flying high to start the year, investors should tread carefully with it. Its heavy exposure to Nvidia means that its performance will be tied to how the tech giant performs. And rather than using CoreWeave as a proxy, you may simply be better off investing in Nvidia. Just because CoreWeave's market cap is smaller doesn't mean that it has more upside.
Nvidia has invested in other businesses in the past that didn't turn out to be good buys for investors, including SoundHound AI, which it ultimately divested from. SoundHound would go on to crash 50% last year.
At the end of the day, it's important to always do your own review of a stock before buying it, rather than relying on the moves another investor or company takes. And based on its fundamentals, CoreWeave doesn't look like a terribly promising stock to own, given its lack of profitability, despite achieving monstrous growth.
