Core Investment Opportunities - Navitas and CoreWeave represent two distinct investment approaches in the rapidly growing AI market [1][2] - Navitas has partnered with Nvidia to supply power-efficient chips for next-gen data centers, while CoreWeave offers cloud-based access to Nvidia's GPUs [1][2] Navitas Overview - Navitas' stock price increased from a record low of $1.52 in April to approximately $6 following its partnership with Nvidia [2] - The company primarily generates revenue from gallium nitride (GaN) and silicon carbide (SiC) power chips, which are used in various applications including EV chargers and data center power supplies [4][5] - Revenue more than doubled in 2023 but is expected to decline by 42% in 2025 due to macroeconomic challenges and inventory adjustments [6][7] - Analysts project a modest revenue increase of 9% in 2026, followed by a significant jump of 79% to $95 million in 2027, but profitability is not expected until after 2026 [6][7] CoreWeave Overview - CoreWeave transitioned from Ethereum mining to AI processing, investing $100 million in Nvidia's H100 GPUs to expand its operations [8] - The company operates over 250,000 GPUs across 33 data centers, significantly increasing from just three data centers at the end of 2022 [9] - Revenue surged from $16 million in 2022 to $1.92 billion in 2024, with a projected CAGR of 106% from 2024 to 2027, reaching $17.27 billion [10] - CoreWeave's market cap stands at $60.7 billion, trading at 11 times this year's sales, indicating a more reasonable valuation compared to Navitas [10] Comparative Analysis - CoreWeave is identified as a stronger investment option due to its direct exposure to the AI market, robust growth potential, and lower valuations compared to Navitas [11] - While Navitas may see sales growth in 2027, potential production issues and delays could hinder its performance [11]

Core Company Overview - Nvidia has been a leading player in the AI market, with a revenue growth of 39% CAGR and EPS growth of 58% CAGR from fiscal 2015 to fiscal 2025 [1][4] - Nvidia controls over 90% of the global discrete GPU market and has a market cap of $4.26 trillion, making it the world's most valuable company [2] CoreWeave's Business Model - CoreWeave transitioned from cryptocurrency mining to AI processing, investing approximately $100 million in Nvidia's H100 GPUs in 2022 [5] - CoreWeave operates 33 data centers, up from just 3 in 2022, and claims to process AI tasks 35 times faster and 80% cheaper than traditional platforms [7][8] Financial Performance - CoreWeave's revenue surged from $16 million in 2022 to $2.19 billion in the first half of 2025, with an expected full-year revenue of $5.25 billion [8] - Despite revenue growth, CoreWeave's net losses widened significantly, reaching $863 million in 2024 and an expected $1.1 billion for the year [9][11] Funding and Debt - CoreWeave has funded its expansion primarily through debt, leading to a rise in annual interest payments from $28 million in 2022 to $784 million in 2024 [10] - The company had $1.15 billion in cash but faced $22.42 billion in total liabilities by the end of the first half of 2025 [11] Competitive Landscape - CoreWeave is seen as a speculative growth play in the AI market but faces competition from larger cloud providers like Amazon's AWS, which could offer similar services at lower prices [12] - The company has not established a monopoly in the AI market like Nvidia has with its proprietary chips, which may hinder its long-term sustainability [12][13]

Core Viewpoint - Intel is scaling back its efforts in the AI accelerator market, particularly in AI training, as it acknowledges the dominance of Nvidia and shifts focus towards AI inference and emerging opportunities in agentic AI [1][2][6][11] AI Training Market - Intel has abandoned its Gaudi line of AI chips due to immature software and an unfamiliar architecture, leading to the cancellation of Falcon Shores, which was intended to succeed Gaudi 3 [1] - CEO Lip-Bu Tan stated that it is "too late" for Intel to catch up in the AI training market, recognizing Nvidia's strong market position [2][11] AI Inference Market - AI inference, which utilizes trained models, is seen as a potentially larger market than AI training, with companies like Cloudflare predicting its growth [6] - Intel plans to focus on AI inference and agentic AI, which are emerging areas with significant potential [7][11] Market Opportunities - There is a growing trend towards smaller, more efficient AI models that can run on less expensive hardware, presenting a market opportunity for Intel [9] - Intel could still succeed in AI chips for edge data centers and devices designed to run fully trained AI models [8] Rack-Scale AI Solutions - It remains uncertain whether Intel will continue developing rack-scale AI solutions, as the future of Jaguar Shores is unclear following Tan's statements [10]