Artificial intelligence (AI) stocks have soared in recent years, leading the S&P 500 higher. The reason for this is simple: Investors have been eager to get in on the next game-changing technology. AI offers companies, for example, the ability to become more efficient and innovative, and these and other gains could supercharge growth over time.
Some companies, primarily those offering AI products and services, already have delivered and may continue to deliver explosive growth as this AI story unfolds. Analysts expect the AI market to reach into the trillions of dollars in the coming years, so this isn't likely to be just a short-term trend.
With all of this in mind, the following AI stock could offer investors life-changing gains.
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A triple-digit gain
This particular player already has seen revenue soar as it gives customers access to something crucial for AI success: capacity to run AI workloads. The company I'm referring to is CoreWeave (CRWV 2.21%), and this AI stock is rather new to the stock market. CoreWeave launched its initial public offering last March and since has climbed more than 120%.
NASDAQ: CRWV
Key Data Points
This company has an interesting business model. It's built up a massive fleet of Nvidia's top graphics processing units, or AI chips, and rents them out to customers according to their needs -- customers may rent them by the hour, so could use them for a very short period of time, or may sign up to use GPUs for a long-lasting project.
Customers have flocked to CoreWeave because this service offers them speed and flexibility -- and is less expensive than building up their own data centers. This popularity can be seen in CoreWeave's revenue numbers. Over the past three quarters, revenue has soared.
CRWV Revenue (Quarterly) data by YCharts
Building out AI infrastructure
In fact, the company's biggest challenge isn't gaining customers. Far from it. Instead, CoreWeave's challenge is to build out enough infrastructure to keep up with demand. This involves taking on debt, and since CoreWeave already is highly leveraged, this represents a risk.
This means that cautious investors may choose to wait on the sidelines for the moment. But, for aggressive investors, CoreWeave represents opportunity today. The company has spoken of high demand quarter after quarter. CoreWeave also has a close relationship with Nvidia, allowing it to quickly make Nvidia's latest systems generally available to its customers. That's a plus since AI customers are eager to get in on Nvidia's innovations.
Meanwhile, Nvidia believes in the CoreWeave story as it's an investor in the company. Considering Nvidia's knowledge of the AI market, this is a positive sign. All of this makes CoreWeave an exciting buy for aggressive investors -- the stock could deliver life-changing gains over time.
