<div id="readability-page-1">All eyes were on Nvidia (NVDA -2.85%) once again on Wednesday when the artificial intelligence (AI) leader released its first-quarter earnings report, and it did not disappoint. Overall revenue jumped 69% from the quarter a year ago to $44.1 billion, which beat estimates at $43.3 billion. The company posted another round of blistering growth in the data center segment, where it's driving the AI revolution. Data center revenue jumped 73% to $39.1 billion. Further down the income statement, gross margin -- adjusted for a $4.5 billion write-down for its H20 chips that were designed for the Chinese market -- was 71.3%. On the bottom line, the company reported adjusted earnings per share of $0.81, beating the consensus. Without the H20 charge, Nvidia would have reported $0.96 in adjusted earnings per share. Looking ahead to the second quarter, Nvidia again faces the sting of the chip export restrictions, but it is still calling for $45 billion in revenue ($8 billion lower than it would have been without the chip export restrictions). Investors seemed happy with the report, and Nvidia stock finished the after-hours session with a gain of 4.9%. Interestingly, a different AI stock, CoreWeave (CRWV 5.44%), outperformed Nvidia in the after-hours session, gaining 5.6%. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTk5MTEvZGF0YS1jZW50ZXItZW5naW5lZXItdXNpbmctbGFwdG9wLWNvbXB1dGVyLWNyeXB0by1taW5pbmcuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTk5MTEvZGF0YS1jZW50ZXItZW5naW5lZXItdXNpbmctbGFwdG9wLWNvbXB1dGVyLWNyeXB0by1taW5pbmcuanBnJnc9NzAw"/>Image source: Getty Images. </div> <h2>The CoreWeave connection</h2> CoreWeave is an operator of generative AI-focused cloud computing services, allowing companies to rent AI computing power (much of which is built using Nvidia chips) as needed. Nvidia is a major customer of CoreWeave and a key investor. CoreWeave stock rose earlier in May after Nvidia disclosed a stake in the stock, at 24.2 million shares that are now worth more than $2.5 billion, or significantly more than Nvidia paid for them when CoreWeave went public in late March 2025. Because CoreWeave is much smaller than Nvidia, at a market cap of $60 billion, and its stock is more volatile, it acts as something like a supercharged version of Nvidia with even more exposure to AI. The recent IPO takes advantage of the company's skyrocketing growth, but also helps it deal with wide losses created by its need to spend on Nvidia components and physical infrastructure for its business. In its first public quarter, CoreWeave revenue jumped 420% to $981.6 million. Its net loss expanded from $129.2 million to $314.6 million in part due to costs associated with its IPO, including share-based compensation, and its interest expense ballooned from $40.7 million to $263.8 million. Adjusted operating income, which excludes share-based compensation, jumped from $25 million to $162.6 million, showing that the underlying business is profitable. <h2>Why CoreWeave could outperform Nvidia</h2> Nvidia is still driving the AI narrative, as it's the clear leader in supplying data centers with the GPUs and other components they need to become &#34;AI Factories.&#34; However, the stock's upside is more limited, as much of its potential growth in AI is already priced into the stock. At a market cap of $3.3 trillion, it will take a lot for Nvidia to surprise investors at this point. CoreWeave's potential, on the other hand, is less understood and harder to model. As a new stock, investors are still figuring out its business model and whether it will be profitable over the long term. Nvidia's earnings report adds another reason to be confident in CoreWeave's growth as demand for AI infrastructure remains strong. We've already heard from Nvidia's big tech peers, and capex forecasts remain strong. As Nvidia pushes full speed ahead with its AI factories, CoreWeave's growth prospects look strong too. If you're bullish on Nvidia's prospects, investing in CoreWeave seems like a smart move. Nvidia's AI infrastructure partner has already doubled since its March 28 IPO, and could rally further if AI demand remains strong. Based on Nvidia's latest update, the bull case for both stocks seems as strong as ever. </div>

CRWV

NVDA

Nvidia reported impressive Q1 earnings with a 69% revenue increase to $44.1 billion, driven by a 73% rise in data center revenue. Despite facing chip export restrictions, Nvidia anticipates $45 billion in Q2 revenue. Meanwhile, CoreWeave, a smaller AI-focused cloud computing company, outperformed Nvidia in after-hours trading, with a 5.6% gain. CoreWeave's revenue surged 420% to $981.6 million, although it reported a net loss of $314.6 million. Analysts suggest CoreWeave may have greater growth potential compared to Nvidia, making it an attractive investment for those bullish on AI.

- Nvidia reported a 69% increase in revenue to $44.1 billion for the first quarter, surpassing estimates, with data center revenue rising 73% to $39.1 billion.  
- Despite facing chip export restrictions, Nvidia anticipates $45 billion in revenue for the second quarter, while CoreWeave, a key AI cloud computing partner, saw its revenue soar 420% to $981.6 million in its first public quarter.  
- The strong earnings from Nvidia bolster confidence in CoreWeave's growth potential, suggesting that investing in both companies could be advantageous as demand for AI infrastructure remains robust.

Nvidia's Q1 Results Were Great, but This AI Stock Could Be a Bigger Winner