Core Companies in AI Boom - Nvidia and Palantir Technologies have been leading performers in the AI sector, with Nvidia up 1,050% and Palantir up 2,360% since the start of 2023 [1][2] - Both companies have shown strong stock performance this year, with Nvidia gaining 24% and Palantir increasing by 108% [1] Emerging AI Stocks - CoreWeave and Nebius are lesser-known AI stocks that have recently gone public and outperformed Nvidia and Palantir this year [2] - CoreWeave has surged 144% since its IPO in late March [2] - Nebius has experienced a remarkable 377% increase since resuming trading last October [3] Company Profiles - CoreWeave and Nebius are AI cloud infrastructure companies providing data centers and computing power for AI workloads [5] - CoreWeave is based in the U.S. and originated from a crypto company, while Nebius is based in Amsterdam and evolved from Yandex [6] - CoreWeave is larger and known for performance hardware, while Nebius offers a broader suite of software and services [6] Revenue Growth - CoreWeave reported a 206% revenue increase in Q2, reaching $1.21 billion [7] - Nebius achieved a staggering 625% revenue growth in Q2, totaling $105.1 million [7] Profitability and Risks - Both companies are currently unprofitable as they invest heavily in infrastructure to support growth [8] - The demand for AI infrastructure is still emerging, raising concerns about a potential bubble and risks of obsolescence in their technology [8] Competitive Landscape - Nvidia and Palantir have been top performers since the launch of ChatGPT, but cloud giants like Microsoft are investing billions into new AI cloud companies [9] - CoreWeave and Nebius have already doubled in value this year and are reporting triple-digit revenue growth [9]

AI hyperscaler CoreWeave (NASDAQ:CRWV) disclosed a $6.3 billion new order form with Nvidia (NASDAQ:NVDA) under its existing 2023 services deal, giving Nvidia rights to buy unused data center capacity through April 13, 2032. Shares of CoreWeave rose nearly 5% in morning trading ...

Core Insights - CoreWeave has signed a new order with Nvidia valued at $6.3 billion, ensuring Nvidia will purchase any residual cloud capacity not sold to customers [1] Company Summary - The initial value of the order with Nvidia is $6.3 billion, indicating a significant commitment from CoreWeave [1] - The agreement guarantees that Nvidia will acquire any unused cloud capacity, which may enhance operational efficiency for both companies [1]

Market Overview - Wall Street showed positive performance despite negative economic indicators, with the S&P 500 gaining 1.6%, Dow Jones up 0.9%, and Nasdaq Composite surging 2% [2] - Corporate strength remained resilient, with a strong IPO market and ongoing tech boom driven by AI enthusiasm [1] Consumer Sentiment - The University of Michigan's preliminary Survey of Consumers indicated a decline in overall sentiment to 55.4 in September, a 4.8% decrease from the previous month and a 21% drop year-over-year, marking the lowest level since May [3] - The Index of Consumer Expectations fell by 7.3% sequentially and 30.4% annually to 51.8 in September, while Current Economic Conditions slipped 0.8% month-on-month and 3.3% year-over-year to 61.2 [4] Inflation Data - The U.S. annual inflation rate rose to 2.9% in August 2025, the highest since January, with a monthly CPI increase of 0.4%, driven by rising gasoline and food prices [5] - Core inflation remained steady at 3.1%, with a monthly increase of 0.3% [6] Employment Data - The U.S. economy added 22,000 jobs in August 2025, significantly lower than the revised 79,000 in July and below market expectations of 75,000 [7] - Job growth was primarily in health care and social assistance, while wholesale trade and manufacturing experienced job losses [8] Federal Reserve Rate Expectations - There is a 93.4% probability of a 25-basis point rate cut in the upcoming September meeting, with a 6.6% chance of a 50-basis point cut [9] IPO Market Activity - Six companies went public in a five-day period, each raising over $100 million, a notable achievement not seen since November 2021 [10] - Recent IPOs included companies like Gemini Space Station, Black Rock Coffee Bar, and Klarna [11] Top-Performing Leveraged ETFs - Defiance Daily Target 2X Long IONQ ETF and GraniteShares 2x Long IONQ Daily ETF both increased by 69.9%, with IonQ shares gaining over 32% [13] - Tradr 2X Long RGTI Daily ETF rose by 55.7%, while Rigetti Computing shares jumped 25% [14] - CoreWeave saw a 53.5% increase in its leveraged ETF, with shares rising 26.2% [15] - Oracle's shares gained 22% following positive guidance, reflected in a 44.8% increase in its leveraged ETF [16] - Micron's shares rose by 20.4%, benefiting from its position in the AI-driven memory and storage markets, with its leveraged ETF up 42% [17]

Core Insights - Monitoring the portfolios of large, successful companies can provide valuable investment ideas, similar to tracking famous investors [2] - Nvidia has invested $4.3 billion in six AI stocks, with CoreWeave being the largest investment [2][6] Nvidia's AI Investments - Nvidia owned over 7.7 million shares of Applied Digital valued at $77.7 million, focusing on blockchain and high-performance computing [4] - Nvidia's 1.1 million shares of Arm Holdings were valued at $178.1 million, a leading semiconductor developer [5] - CoreWeave, Nvidia's largest investment, consists of nearly 24.3 million shares worth approximately $3.96 billion, centered on generative AI applications [6] - Nvidia's stake in Nebius Group, valued at $65.9 million, has increased significantly following a multibillion-dollar deal with Microsoft [7] - Recursion Pharmaceuticals, valued at almost $39 million, utilizes AI for drug discovery, with Nvidia holding 7.7 million shares [8] - Nvidia's smallest investment is in WeRide, valued at around $13.7 million, which uses Nvidia's technology for autonomous vehicles [9] Performance and Outlook - Most of the AI stocks in Nvidia's portfolio remain unprofitable, but one stock stands out due to its valuation and growth prospects [10]

Core View - The "Big Seven" tech giants continue to drive the U.S. stock market, primarily due to their roles in the high-growth AI sector, which is expected to reach trillions of dollars by early 2030 [1] - Other companies outside the "Big Seven" are also poised to benefit from the AI boom, particularly in infrastructure and equipment demand, with three specific stocks highlighted for their potential to outperform the giants in the next decade [1] Company Summaries Oracle (ORCL.US) - Oracle has shifted focus to expanding its cloud infrastructure business, leading to a 55% increase in infrastructure revenue in the last quarter [2] - The company forecasts $18 billion in revenue from this segment this year, growing to $144 billion in four years [2] - Following strong guidance, Oracle's stock surged approximately 35%, adding over $200 billion to its market capitalization [2] CoreWeave (CRWV.US) - CoreWeave has designed its cloud platform specifically for AI workloads and has partnered closely with Nvidia, becoming the first to fully open Nvidia's latest platform to customers [3] - Nvidia holds a 91% stake in CoreWeave, indicating strong confidence in its potential [3] - CoreWeave's revenue doubled in the last quarter, exceeding $1.2 billion, driven by increasing demand for AI infrastructure [3] Broadcom (AVGO.US) - Broadcom has seen a 63% year-over-year increase in AI business revenue, reaching $5.2 billion, with expectations of $6.2 billion in the next quarter [4] - The company is developing custom chips for three major clients and recently secured a $10 billion order, potentially from OpenAI [4] - Broadcom's expertise in networking is crucial as AI clients expand their platforms and require high-performance systems to connect increasing computational nodes [4] Industry Outlook - The AI market is in its early stages and is projected to reach a trillion-dollar scale, with Broadcom expected to benefit significantly and potentially outperform the "Big Seven" in the next decade [5]

Core Viewpoint - The "Magnificent Seven" stocks are leading the growth in the AI sector, which is projected to reach trillions of dollars by the early 2030s, but other companies are also poised for significant growth in this area [2][3] Company Summaries - **Oracle**: The company has shifted focus to its cloud infrastructure business, resulting in a 55% increase in infrastructure revenue in the recent quarter. Oracle expects to generate $18 billion in revenue this year, with projections of $144 billion in four years [6][7] - **CoreWeave**: This company has tailored its cloud platform for AI workloads and has seen its revenue triple to over $1.2 billion in the latest quarter. CoreWeave's close partnership with Nvidia positions it well for future growth in AI infrastructure [9][11] - **Broadcom**: The company reported a 63% year-over-year increase in AI revenue, reaching $5.2 billion in the recent quarter. Broadcom is also working on custom chips for major clients and has received a $10 billion order, potentially from OpenAI [13][15]

Core Insights - The Goldman Sachs Communacopia + Technology conference serves as a significant platform for tech executives to share insights shortly after Q2 earnings and during budget planning season, providing valuable information for future trends and stock ideas [1][2] - The pace of AI growth remains robust, with expectations of continued expansion through 2026, countering narratives of a potential peak in AI development and capital expenditures [3] - OpenAI is projected to triple its revenue to approximately $13 billion this year from $4 billion last year, indicating strong growth in the AI sector [4] Company Highlights - CoreWeave has established a substantial partnership with OpenAI, signing an $11.9 billion five-year deal for AI compute capacity, which was expanded by an additional $4 billion in May [5] - The demand for AI compute capacity is described as overwhelming, with CoreWeave's CEO emphasizing the industry's ability to meet the needs of major players like OpenAI and hyperscalers [5] - CoreWeave's business model has received mixed reviews due to its reliance on significant debt for operations, suggesting potential volatility in its trading outlook [7]

Core Points - CoreWeave's revenue surged by 207% in Q2 2025, reaching $1.2 billion, with a backlog of $30.1 billion, an increase of nearly $14 billion year-over-year [1][8] - The company has secured significant contracts from major clients like OpenAI and Google Cloud, contributing to its robust demand for AI infrastructure [2][8] - CoreWeave's stock rose over 7% following the Nebius-Microsoft deal, highlighting its competitive position in the AI cloud infrastructure market [3][6] Financial Performance - CoreWeave's revenue backlog has doubled in the first half of 2025, indicating strong growth potential [1] - The company has contracts totaling $15.9 billion from OpenAI this year, further enhancing its revenue outlook [8] - CoreWeave's active power capacity was 470 megawatts (MW) at the end of the previous quarter, with plans to increase to 900 MW by year-end [11] Market Position - CoreWeave operates 33 AI data centers across North America and Europe, with a contracted capacity of 2.2 gigawatts (GW), significantly higher than competitors like Nebius [11][13] - The total addressable market for AI infrastructure is projected to reach $400 billion by 2028, positioning CoreWeave for sustained growth [10][7] - CoreWeave's valuation is attractive, trading at less than 14 times sales compared to Nebius' price-to-sales ratio of 91 [14] Growth Potential - Consensus estimates suggest that CoreWeave's revenue could more than triple in two years, driven by its substantial backlog and market demand [14] - If CoreWeave achieves $17 billion in revenue in three years, its market cap could increase to $85 billion, representing a potential 73% gain from current levels [15]

Group 1 - CoreWeave, Inc. (NASDAQ:CRWV) experienced significant stock price fluctuations, initially rising from $40 to a high of $187 before dropping to the low 90s after the expiration of the insider selling lockup [1] - The company reported strong quarterly results, but the expiration of the lockup led to a wave of insider selling, resulting in a 37% decline from mid-August highs [1] - CoreWeave provides a cloud platform that supports enterprise compute workloads, including GPU and CPU compute, storage, networking, and managed services, with applications in AI training, VFX rendering, and machine learning [2] Group 2 - While CoreWeave shows potential as an investment, there are other AI stocks that may offer greater upside potential and less downside risk [3]