AI stocks Palantir and CoreWeave have rocketed higher this year, but certain analysts expect shareholders to sustain major losses in the coming months. Palantir Technologies (PLTR -1.10%) and CoreWeave (CRWV -1.21%) shares have increased 109% and 175%, respectively, this year. But some Wall Street analysts think the popular artificial intelligence stocks are likely to crash in the next 12 months, as detailed below: Here's what investors should know about Palantir and CoreWeave. Palantir Technologies: 62% im ...

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].

Industry Overview - Artificial intelligence (AI) is projected to add $19.9 trillion to the global economy by 2030, with spending on AI hardware, software, and services expected to grow at an annual rate of 36% during the same period [1]. Company Analysis: Palantir Technologies - Palantir Technologies has experienced accelerated revenue growth for seven consecutive quarters, with its share price increasing by 1,500% since May 2023, turning a $5,000 investment two years ago into approximately $80,000 [2][3]. Company Analysis: CoreWeave - CoreWeave, which went public on March 28, 2025, has seen its stock price rise by 150%, positioning it as a potential successor to Palantir in generating significant returns [4]. - CoreWeave specializes in AI infrastructure, offering cloud services tailored for AI and high-performance computing, distinguishing itself from competitors like Amazon Web Services and Microsoft Azure by operating a GPU cloud [5]. - The company has been recognized as the best GPU cloud provider by SemiAnalysis, noted for its early deployment of the latest Nvidia GPUs and achieving record-breaking performance in MLPerf benchmarks [6][7]. Financial Performance: CoreWeave - CoreWeave reported a remarkable 420% increase in revenue to $981 million and a 550% rise in adjusted operating income to $162 million in the first quarter, despite a non-GAAP net loss of $150 million, significantly larger than the $24 million loss in the same quarter the previous year [9]. - The company's substantial long-term debt of $7.8 billion has led to high interest expenses, consuming over a quarter of its revenue, which accounted for the difference between adjusted operating income and net income [10]. Strategic Developments: CoreWeave - In May, CoreWeave acquired AI developer platform Weights & Biases, enhancing its platform by providing tools for developers to train, evaluate, and monitor AI models [11]. Valuation Metrics: CoreWeave - CoreWeave currently trades at 18 times sales, which is considered between expensive and reasonable compared to peers like Cloudflare at 31 times and Microsoft at 13 times [12].