Palantir vs. CoreWeave: Why This Investor Says One AI Stock Dominates the Rest in 2025

AI stocks are sizzling—but which one actually delivers returns beyond the hype? One top investor just made a decisive call between data giant Palantir and cloud powerhouse CoreWeave.

Behind the Numbers

Both firms are racing to monetize the AI boom, but the investor points to scalability, client moats, and pure execution speed as differentiators. Palantir’s government ties and enterprise foothold give it staying power—while CoreWeave’s GPU-heavy infrastructure appeals to developers craving raw compute.

Market Realities

It’s not just technical specs; it’s who captures value when the AI narrative cools. The investor’s pick leans into proven contracts over promised throughput—because in tech, revenue beats rumors every time. (And if you think Wall Street analysts aren’t already six months behind on this call—well, we’ve got a metaverse property to sell you.)

Final verdict? One stock’s setup looks bulletproof. The other? Still playing catch-up.

For most individuals, first-hand experience with AI arrives in the FORM of a chatbot or automated customer service agent. While these are the most visible manifestations of the rapidly advancing technology, there are plenty of additional layers that comprise this expanding universe of computational power.

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While the subject is complex, one truth is crystal clear: the current trajectory of vigorous AI growth shows no signs of slowing down. According to a recent report by Skyquest, the global AI market is slated to increase from $284.2 billion in 2024 to $2.3 trillion by 2032 – representing a CAGR of 31.5% in the years ahead. The publication also noted that AI services (i.e. AI consulting) is expected to be the fastest-growing segment of this burgeoning industry.

With numbers this eye-catching, it’s no wonder investors want in on the companies shaping the technological roadmap. This runs the gamut from companies manufacturing AI chips and physical infrastructure to those offering advanced software and services.

But how do you separate the AI winners from the laggards? Investor Kevin George performed a DEEP dive into two prominent names that have come to foreground of the AI discussion:and. He’s bullish on one, and worried about the other. Let’s see what’s behind his call.

CoreWeave burst on to the scene earlier this year with a highly anticipated late-March IPO, and investors immediately wanted in. CRWV provides Nvidia GPUs for rent, offering high-performance computing resources tailored for AI workloads, and an eager marketplace was quick to jump on board this GPUs-as-a-Service provider.

CRWV saw its share price surge out of the gate, gaining almost 400% in its first few months on the market. Since then, however, the narrative has shifted a bit, as concerns over CRWV’s highly-leveraged position ($14.56 billion in debt and a debt-to-equity ratio of ~380% at the end of Q2 2025) and negative margins have weighed on sentiment.

In addition, the expiration of the company’s IPO lock-up in mid-August triggered a wave of selling, further pushing the stock downwards. Indeed, the summer season was not kind to CRWV stock, which is down by 35% since its June peak, even when factoring in the stock’s recent uptick.  

In any case, Kevin George sees little reason for concern. “CoreWeave is uniquely positioned in the GPU cloud market, with strong revenue growth and Nvidia-endorsed infrastructure,” explains the investor.

George points to CRWV’s Q1 earnings report, which showed revenues skyrocketing from $116 million in Q4 2023 to $981.6 million in Q1 2025 – an astonishing increase by any stretch. The Q2 print was no slouch either, albeit revenue was up “only” 210.3% year-over-year, coming in at $1.21 billion, and surpassing the estimates by $130 million.

Moreover, there are some tailwinds that should lead to more revenue gains up ahead, including strategic alliances with big tech and a multibillion-dollar revenue backlog. George spotlights partnerships with Nvidia and Microsoft, along with a long-term agreement with OpenAI (a buildout which was supported by financing from financial heavyweight Morgan Stanley, among others).

While there are worries about CRWV’s valuation, George is not too concerned. He thinks that CRWV’s focus on GPUs puts the company in a “prime spot” to drive value going forward.

“CoreWeave Inc. has an attractive position in the GPU market and has infrastructure that Nvidia has called the fastest in the world,” concludes George, who rates CRWV a Buy. (To watch Kevin George’s track record, click here)

Turning to Wall Street’s view, with 9 Buys, 12 Holds, and 2 Sells, CRWV gets a Moderate Buy consensus rating. The 12-month average price target of $123.45 implies modest gains of 4% in the year ahead. (See)

While CRWV is a relatively recent addition to the AI conversation, Palantir has firmly planted its flag among the high-flyers. The big data AI company helps public and private sector clients enhance decision-making and streamline processes and has enjoyed both real-world and stock market success over the past few years.

The company has been expanding hand-over-fist, delivering incredible rates of growth for the past few quarters. In Q2, revenue broke through the $1 billion mark for the first time, with 93% year-over-year U.S. commercial growth a concrete demonstration that it has found plenty of clientele beyond its roots in the defense industry.

Meanwhile, Palantir’s share price has exploded by more than 360% over the past twelve months, reflecting investor confidence in the company’s positioning in the AI game. That said, the big issue giving some potential investors pause is the stock’s inflated valuation, which factors in years of continued growth.

Count Kevin George among those turned off by this issue. “Palantir looks priced for perfection, with valuation metrics that are extremely elevated and detached from fundamentals after a strong AI-driven rally,” asserts George.

However, that’s not the only “red flag” that the investor identifies. George notes that the company leadership appears to be very tight with the TRUMP administration officials, and mentions that there was even talk of the U.S. government using Palantir’s technology to gather information on American citizens. While this offers some advantages at present, it could eventually backfire. “I believe that Palantir’s success is too closely tied to the Trump administration, which obviously has a shelf life,” warns George.

The investor also points out that PLTR tends to trade on sentiment, not just on fundamentals. How else to explain a 47% drop between February and April, which was based entirely on “the speculative nature underpinning this rally.”

This makes PLTR ripe for another external shock, one that could send the share price down the toilet. In fact, a recent valuation of OpenAI WOULD imply that PLTR should be trading at $40 a share, far below its current levels. “I believe that there will be better entry points for Palantir in the future, and that provides an opportunity to watch the next two quarters for further clarification,” concludes George, who rates PLTR a Sell.

Wall Street is sitting comfortably on the fence when it comes to PLTR. With 13 Holds – and 5 Buys and 2 Sells – the stock carries a Hold consensus rating. The 12-month average price target of $155.39 suggests shares have overshot by 7%. (See)

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