Key Points Nvidia dominates the AI chip market and has a huge financial advantage over CoreWeave. However, CoreWeave is growing faster and even beats Nvidia on some key valuation metrics. 10 stocks we like better than CoreWeave › History is full of epic battles between an underdog and a heavy favorite. Sometimes, the favorite wins -- like the first USA "Dream Team" men's basketball team competing in the Olympic Games. However, the underdog can prevail, too. David against Goliath is probably the mos ...

Core Idea - The strong demand for AI workloads in the cloud is significantly enhancing CoreWeave's revenue pipeline, with recent multibillion-dollar contracts indicating robust growth potential [2][6]. Company Overview - CoreWeave operates AI data centers in Europe and the U.S., leveraging Nvidia's GPUs to attract major tech clients like Microsoft, Meta Platforms, and OpenAI [4][5]. - The company has secured substantial contracts, including a $14.2 billion deal with Meta and a $6.5 billion contract with OpenAI, totaling $22.4 billion in contracts for the year [5]. Revenue Backlog and Growth Potential - CoreWeave's revenue backlog has surged from $30.1 billion at the end of Q2 to over $50 billion, reflecting a more than threefold increase [6]. - The company anticipates finishing 2025 with an estimated revenue of $5.25 billion, positioning it as a strong competitor to Oracle in the cloud AI infrastructure market [7]. Capacity Expansion - CoreWeave plans to invest $20 billion to $23 billion in capital expenditures in 2025, a significant increase from $8.3 billion in 2024, indicating aggressive capacity expansion [8][9]. - The total contracted data center power capacity has increased to 2.2 gigawatts from 600 megawatts, enabling the company to service more AI workloads [10]. Market Position and Valuation - CoreWeave's revenue is projected to grow by nearly 2.8 times this year, with expectations of a 3.4 times increase over the next two years, outpacing Oracle's growth [14][15]. - The current valuation at 19 times sales is considered attractive compared to Oracle's 14 times sales, suggesting a solid investment opportunity [16].

Core Insights - Magnetar Financial has transitioned from shorting subprime debt to becoming a major player in the AI sector, with a significant investment in CoreWeave Inc. that has grown from $50 million to a $12.5 billion stake, representing 72% of Magnetar's $20.5 billion portfolio and resulting in a 145% quarterly gain [2][3][4] Investment Strategy - The initial investment in CoreWeave was made through structured loans, leading to a $7.5 billion loan in 2024, one of the largest private debt financings, which later converted into equity when CoreWeave went public [4][5] - As of September 30, Magnetar held 91.4 million shares of CoreWeave, approximately 23% of the company, despite trimming its position by 4.4 million shares, which still resulted in a 247% gain as CoreWeave's stock increased over 220% year-to-date [5][6] Market Position - Magnetar's shift towards a concentrated investment in a single AI company is notable for a fund traditionally focused on credit arbitrage, raising concerns among some investors about the venture-like nature of this exposure, yet the returns have been substantial [5][6]

Core Viewpoint - Jim Cramer is recognized for having a "hit or miss" track record in the investment community [1] Group 1 - Cramer's reputation fluctuates, indicating that his predictions may not always be reliable [1]

As we enter October, CoreWeave (CRWV) finds itself at a pivotal inflection point. Once a scrappy crypto-miner turned artificial intelligence (AI) infrastructure play, the company has rapidly repositioned itself as a central node in the GPU-powered cloud ecosystem. Its latest multi-billion dollar deals with OpenAI and Nvidia (NVDA) inject further opportunities into its path forward. But surging revenue is accompanied by soaring costs and concentration risk. So, should you buy, sell, or hold CoreWeave this ...

Coreweave Overview - Coreweave's shares increased by over 8% following the announcement of new tools aimed at assisting programmers in developing AI agents [1] - The CEO of Coreweave dismissed concerns regarding circular deals in the AI sector, emphasizing that major tech companies are investing in infrastructure due to high demand [1][2] Partnerships and Deals - Coreweave recently expanded its deal with OpenAI by $6.5 billion and signed a deal worth over $14 billion with Meta [2] - In early September, Coreweave disclosed a $6 billion order with Nvidia, which is a significant stakeholder in the company [3] Vendor Financing - The deals with Nvidia and AMD are characterized as vendor financing arrangements, albeit structured differently [3][4] - The AMD deal involves providing a stake in the company to enhance the value of warrants, allowing Coreweave to finance chip purchases [5] - It is noted that Nvidia holds a more advantageous position in its deal compared to AMD [6]

Core Insights - The AI stock market has seen significant investment, particularly in companies involved in various technology sectors, with notable gains from Nvidia and SoundHound AI, which have increased by 1,300% and nearly 400% over three years respectively [2] - The GPU-as-a-service (GPUaaS) sector within cloud infrastructure has emerged as a key area of growth, driven by the high demand for graphics processing units (GPUs) essential for AI model training and inferencing [3] Company Highlights - CoreWeave has experienced a stock price increase of over 200% this year, focusing on AI workloads and optimizing its offerings for efficiency, distinguishing itself from major cloud providers [4][5] - CoreWeave's close relationship with Nvidia, which owns 7% of its stock, has facilitated its early access to Nvidia's latest platforms, enhancing its competitive edge [6] - CoreWeave reported a revenue growth of over 400% year over year in Q1 and tripled its revenue year over year in Q2 [7] Nebius Overview - Nebius, formed from the reorganization of Yandex, focuses on renting compute and managed services for AI platforms, and has seen a surge in demand [8] - Nvidia holds approximately 1.5% of its investment portfolio in Nebius, indicating confidence in its potential [9] - Nebius reported a quarterly revenue increase of over 600% to $105 million and raised its annual run rate revenue guidance to between $900 million and $1.1 billion [10] Market Predictions - Wall Street forecasts a 6% increase for CoreWeave and a 23% increase for Nebius over the next 12 months, with some analysts predicting gains of 75% for CoreWeave and 66% for Nebius [11] - Both companies are positioned to benefit from the growing demand for GPUaaS, suggesting potential for long-term revenue and stock performance [13]

Core Viewpoint - Jim Chanos has criticized CoreWeave Inc.'s economic model, arguing that the company's significant capital investments do not yield meaningful returns based on the CEO's statements [1][2]. Financial Analysis - Chanos highlighted that CoreWeave's second-quarter financials indicated an average of $19.1 billion in capital employed, leading to an annual "economic depreciation" of $2.729 billion when amortized over the seven-year useful life of the equipment [2][3]. - This depreciation figure surpasses the company's annualized second-quarter EBITDA of $2.624 billion, resulting in a 0% return on invested capital (ROIC) according to Chanos [3]. Company Response - CoreWeave CEO Michael Intrator defended the company's position during an interview, emphasizing the importance of their sophisticated software stack and dismissing the idea that the company is merely a real estate play [4][5]. - Intrator aimed to bolster confidence following the all-stock acquisition of Core Scientific Inc., asserting that the software is crucial to the AI ecosystem [4]. Market Performance - CoreWeave's shares increased by 8.65% to $139.98 on Wednesday, with a further rise of 0.71% in after-hours trading, marking a total increase of 249.95% since its listing in March 2025 [6].

Market Overview - The market rebounded from a previous slump, setting new records, driven by optimism from the Fed's meeting minutes and bullish sentiment surrounding AI [1] - The S&P 500 index rose by 0.6%, reaching a new high of $6,755, while the Nasdaq Composite increased by 1.1% [6] Commodity Performance - Gold and silver prices increased, with gold up 1.4% and silver up 1.8%, both reaching new highs amid government uncertainties and geopolitical tensions [2] Company Performance - Advanced Micro Devices (AMD) saw a significant stock increase of 11.4%, while Dell Technologies (DELL) rose by 9% following positive growth expectations [3][9] - Dell raised its annual revenue growth target to 7-9% from a previous estimate of 3-4%, contributing to its stock surge [9] - Other notable stock movements included CoreWeave (CRWV) up 8.7%, Arista Networks (ANET) up 8.3%, and Super Micro Computer (SMCI) up 6.5% [3][7] Upcoming Earnings - Companies such as Pepsi (PEP), Tilray (TLRY), Delta Air Lines (DAL), and Levi Strauss (LEVI) are set to release their earnings, which may impact their stock performance [3]

Core Investment Insights - Jensen Wang discussed the importance of being a great investor and highlighted the investment in Coreweave as a significant opportunity, despite its perceived risks [1] - The narrative of circular investment is fundamentally flawed, as it misrepresents the nature of investments being made in the technology sector [2] Market Dynamics - Major technology companies such as Meta, Microsoft, Amazon, and Google are actively purchasing infrastructure to meet client demand, indicating a robust market for infrastructure investments [3] - The current infrastructure buildout is substantial, and partnerships are common as companies aim to deliver infrastructure solutions to consumers, which is not indicative of circular investments [4] Investment Scale - Nvidia's initial investment of $100 million was not aimed at circular acceleration but rather at acquiring a solution that they wanted to own, reflecting a strategic investment approach [4][5] - The total raised amount of $25 billion signifies the scale of investment in the sector, driven by the demand for innovative solutions [5] Future Outlook - The narrative surrounding circular investments is expected to fade as the fundamental market drivers remain strong and continue to support growth in the technology infrastructure space [6]