Prediction: 1 Artificial Intelligence (AI) Stock to Buy Before It Soars 100% in the Next Year (Hint: Not Palantir)

Core Viewpoint - CoreWeave is positioned as a potential major player in the ongoing AI boom, with expectations for significant stock growth in the coming year, following a strong performance since its IPO [1]. Company Overview - CoreWeave specializes in artificial intelligence infrastructure services, providing a GPU cloud platform tailored for demanding AI workloads, and has been recognized as the best GPU cloud by SemiAnalysis [3]. - The company has established a competitive edge by being the first to deploy the latest Nvidia technologies and excelling in GPU cluster performance, achieving record results in MLPerf benchmarks [4]. Financial Performance - In the first quarter, CoreWeave reported a revenue increase of 420% to $981 million and an adjusted operating income rise of 550% to $162 million, although it faced a non-GAAP net loss of $150 million due to debt interest payments [5]. - The company employs a responsible borrowing strategy, only incurring debt when customer contracts necessitate additional infrastructure, ensuring that the contracts cover the debt costs [6]. Customer Base and Contracts - CoreWeave has a notable customer list, including IBM, Meta Platforms, Microsoft, and Nvidia, and has secured new contracts with OpenAI and another unnamed hyperscaler, resulting in a revenue backlog of nearly $26 billion [7][8]. Market Valuation and Growth Potential - Currently trading at 26 times sales, CoreWeave's valuation is considered high but justified given its triple-digit revenue growth and a gross margin of 73% [9]. - Wall Street forecasts a 200% growth in trailing-12-month sales over the next four quarters, suggesting that the stock could double while the price-to-sales ratio decreases to 17, contingent on sustained demand for AI infrastructure [10].