CoreWeave vs. Nvidia: Which AI Stock Will Dominate the Next Decade?

Two titans clash in the AI infrastructure race—one an established giant, the other a cloud-native upstart. Investors are placing billion-dollar bets on who powers the future of artificial intelligence.

The Hardware Heavyweight

Nvidia's GPUs remain the undisputed workhorses of AI training. Their chips process trillions of parameters while their software ecosystem locks in developers. The moat looks deep—until you check the valuation multiples.

The Cloud Disruptor

CoreWeave's specialized cloud infrastructure bypasses traditional providers. They deliver raw GPU power without the bloat—and snagged contracts from AI labs that prefer performance over prestige. Their growth trajectory looks vertical.

The Bottom Line

Nvidia prints money today. CoreWeave captures tomorrow's architecture. Choose between the blue-chip safe bet and the infrastructure rebel—because in AI, even the 'sure things' get disrupted before Wall Street analysts finish their coffee. Remember: the market rewards innovation, not yesterday's earnings report.

Image source: Getty Images.

The case for Nvidia

With Nvidia, you're investing in a high-powered business that continues to dominate the AI chip market, being the go-to option for many tech companies. In the trailing 12 months, the company has reported $148.5 billion in revenue, with profits totaling just under $77 billion. Those are incredibly impressive profit margins, which highlight just how much dominance the company has and the pricing power it possesses. And that's with export restrictions limiting its sales to China.

Recently, however, Nvidia agreed to give the U.S. government a 15% cut of its AI chip sales to China in order to continue selling to that part of the world. By doing so, that could generate billions more in revenue for the chipmaker.

While Nvidia is already flush with growth opportunities, it's a reminder to investors of just how much growth potential still exists for the company. Its high profit margins can ensure that its bottom line also rises at a fast rate, along with sales. And that means that although its price-to-earnings multiple of 57 may seem high right now, it should come down over time. A premium for such a high-powered business may easily be justifiable, given how important of a role Nvidia plays in the overall tech sector and AI-related development.

The case for CoreWeave

CoreWeave has been one of the hottest new stocks to own this year. It's up around 130% since going public back in March. But with a market cap of less than $34 billion, it's still only a small fraction of the size of Nvidia. And it has also been posting some incredible growth lately.

In its most recent quarter, which ended on June 30, the company's revenue totaled $1.2 billion, which was more than three times the $395 million it reported in the same period last year. CEO Michael Intrator says that the company is "scaling rapidly as we look to meet the unprecedented demand for AI."

CoreWeave projects full-year revenue growth of 174% this year, as it is proving to be one of the fastest-growing AI stocks to buy right now. For investors, it could possess a lot of upsides, as it benefits from strong demand for Nvidia's chips and the ongoing need for greater computing capabilities as a result of AI.

CoreWeave looks promising, but Nvidia is still the better all-around investment

Although it's an expensive stock, Nvidia can still potentially look cheap in the long run, given its earnings growth, and it's the stock I'd go with right now. CoreWeave isn't profitable, has a lot of debt, and its business depends on access to Nvidia's chips.

A company that's dependent on a close relationship with another business isn't one that I'd feel too comfortable investing in. While the two companies are getting along well right now, the safer option for the long term is to invest in a business that has a strong competitive moat of its own and also has a strong bottom line, such as Nvidia.

CoreWeave has been generating better returns, but given its lack of profitability and risk, it's not going to be a suitable option for most investors. With a much stronger business, Nvidia is still the better option for AI investors today.