Down 27%, This AI Stock Is a Screaming Buy Right Now (Hint: It's Not Nvidia)

Core Insights - The surge in demand for AI data center capacity has significantly benefited CoreWeave, leading to a substantial revenue backlog [1][7] - CoreWeave's revenue for Q2 2025 reached $1.2 billion, marking a 207% increase year-over-year, with a backlog of nearly $14 billion [7][10] - The company has secured major contracts with industry leaders such as OpenAI, Meta Platforms, and Nvidia, indicating strong future revenue potential [8][9] Company Overview - CoreWeave specializes in AI-focused data centers, operating 33 facilities powered by Nvidia's GPUs across the U.S. and Europe [5][6] - The GPU-as-a-service model allows customers to run AI workloads without the need for expensive hardware, enhancing cost efficiency [6] Growth Potential - CoreWeave's backlog has doubled in the first half of 2025, reflecting the high demand for AI cloud computing capacity [8] - The company is expected to convert its backlog into revenue as it expands its data center capacity, which currently stands at 470 megawatts with a contracted capacity of 2.2 gigawatts [11][12] Valuation and Market Position - CoreWeave's price-to-sales ratio is 19, which, while considered expensive, is significantly lower than Nvidia's valuation [16] - The anticipated growth trajectory suggests that CoreWeave could outperform consensus expectations, providing a solid long-term investment opportunity [15][19]