This AI Stock Is Up 268% This Year and Crushing Nvidia's Returns (Hint: It's Not Palantir)

Core Viewpoint - CoreWeave has experienced significant stock appreciation since its IPO, with a 268% increase, while Nvidia's stock remains flat year to date [1][5][4] Company Growth - CoreWeave's revenue has surged by 420% year over year, reaching $982 million last quarter, with projections of approximately $5 billion in revenue by 2025 [5][6] - The company has a backlog of $25.9 billion, indicating strong demand for its AI-focused cloud services [6] Capital Expenditures and Cash Flow - CoreWeave plans to spend at least $20 billion on capital expenditures in 2025, which is four times its revenue estimates for that year [7][9] - The company is expected to face significant cash burn, with a projected free cash burn of at least $15 billion in 2025, before overhead costs [9][10] Market Position and Valuation - CoreWeave is positioned as a growing player in the cloud computing market, particularly in the AI segment, but is not expected to dethrone major providers [6][11] - With a market cap of $70 billion, the stock is considered overvalued, trading at a price-to-sales ratio of 14.2, which raises concerns given its high debt levels and cash burn [12][13]