CoreWeave Could Be the Next Nvidia-Backed Stock to Soar
Nvidia is a giant in the artificial intelligence (AI) space, and its understanding of the industry has given it a keen eye for identifying potential winners. The company's broad role in AI allows it to see every angle of the story, from chip design to system creation and platform development.
Nvidia's latest move was to offer an acquisition bid for Hugging Face, an open-source AI platform. This is part of its effort to play a role in every part of the AI ecosystem.
The company has invested in eight other companies through its 13F filing with the Securities and Exchange Commission. One of these investments could be the next Nvidia-backed stock to go parabolic, according to a prediction from The Motley Fool.
The predicted stock is CoreWeave (CRWV), a specialized cloud company that has been working closely with Nvidia for several years. Its business is linked to demand for Nvidia's GPUs, and its revenue soared 112% in the latest quarter to a record high of $2.6 billion.
CoreWeave's close relationship with Nvidia gives it an edge in the market, with the chip giant pledging to buy any unused capacity through April 2032. However, investors have expressed concerns about CoreWeave's debt, which has climbed to $640 million from $267 million in the previous year.