<p>Artificial intelligence (AI) has been on a blistering run over the past several years, and its adoption shows no signs of slowing. These cutting-edge algorithms promise to change the technology landscape as we know it, and it's been a windfall for companies at the forefront of this technology. Nowhere is that more apparent than in <strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-red-900">1.38%</span>)</span>.</p>
<p>The AI-centric chipmaker pioneered the graphics processing units (GPUs) that create lifelike images in video games. Those same processors are now the gold standard for powering AI, making Nvidia the de facto flag-bearer for the technology.</p>
<p>In the first quarter, Nvidia effectively doubled its position in <strong>CoreWeave</strong> <span class="ticker-mention inline-flex items-center font-bold">(CRWV <span class="ml-1 text-red-900">3.27%</span>)</span>, prompting investors to take a fresh look at the neocloud operator.</p>
<div><img alt="A long row of rack servers in a data center. " width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA4NTEvYS1sb25nLXJvdy1vZi1yYWNrLXNlcnZlcnMtaW4tYS1kYXRhLWNlbnRlci5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA4NTEvYS1sb25nLXJvdy1vZi1yYWNrLXNlcnZlcnMtaW4tYS1kYXRhLWNlbnRlci5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
</div>
<h2>The case for neoclouds</h2>
<p>Cloud computing became widely available more than two decades ago, providing businesses with on-demand computing services. Neoclouds are the latest version of these services, offering GPU-as-a-service (GPUaaS) and AI-as-a-Service (AIaaS). CoreWeave is the largest and most well-known of these neocloud providers. </p><div><div id="foolcom_sidebar_top_container"></div></div>
<p>CoreWeave has a strategic partnership with Nvidia, giving the company something of a competitive advantage. By collaborating with Nvidia, CoreWeave has access to the company's most recent state-of-the-art AI chips.</p><div></div>
<p>Nvidia already had a sizable position in CoreWeave, owning more than 24.2 million shares. According to a regulatory filing released after the market close on Friday, Nvidia nearly doubled its holdings in the first quarter, bringing its total stake to more than 47.2 million shares. In all, Nvidia owns roughly 11% of CoreWeave's outstanding stock, a stake currently worth $4.9 billion and 20% of the chipmaker's equity portfolio. </p><div><div id="in_line_article_pitch_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Nvidia Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4"/></div><div><h2>NASDAQ: NVDA</h2><div>Nvidia</div></div></div><div><div><div>Today's Change</div><div>(-1.38%) $-3.11</div><div>Current Price</div><div>$222.21</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$5.5T</div><div>Day's Range</div><div>$218.37 - $230.00</div><div>52wk Range</div><div>$129.16 - $236.54</div><div>Volume</div><div>5.4M</div><div>Avg Vol</div><div>171M</div><div>Gross Margin</div><div>71.07%</div><div>Dividend Yield</div><div>0.02%</div></div></div></div></section>
<p>When he announced the investment earlier this year, Nvidia CEO Jensen Huang expounded on the opportunity, saying:</p>
<blockquote>
<p>CoreWeave's deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we're racing to meet extraordinary demand for Nvidia AI factories -- the foundation of the AI industrial revolution. </p>
</blockquote>
<p>Given Nvidia's growing ties to CoreWeave and its massive vote of confidence, should investors follow suit?</p>
<h2>Paint the numbers</h2>
<p>CoreWeave's growth is compelling. In the first quarter, revenue surged 112% year over year to $2 billion, while its loss per share was essentially flat at $1.40. </p>
<p>Perhaps as important is the company's backlog, which surged 284% year over year to $99.4 billion, which provides insight into future revenue. In fact, CEO Michael Intrator said on the earnings call that &#34;demand is accelerating across the board.&#34;</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="CoreWeave Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NSV1YucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NSV1YucG5nJnc9MTI4"/></div><div><h2>NASDAQ: CRWV</h2><div>CoreWeave</div></div></div><div><div><div>Today's Change</div><div>(-3.27%) $-3.50</div><div>Current Price</div><div>$103.80</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$59B</div><div>Day's Range</div><div>$98.67 - $106.95</div><div>52wk Range</div><div>$63.80 - $187.00</div><div>Volume</div><div>1.7M</div><div>Avg Vol</div><div>28M</div><div>Gross Margin</div><div>34.82%</div></div></div></div></section>
<p>As CoreWeave continues to expand to meet unrelenting demand, the company is investing heavily in capital expenditures (capex), with 2026 spending expected to range from $31 billion to $35 billion. Despite the heavy investment, CoreWeave said, &#34;Our deployments continue to be profitable at the contract level.&#34; This suggests that as the company scales, the profits will likely come. </p>
<h2>Ready for prime time?</h2>
<p>CoreWeave isn't yet profitable, but it did keep the red ink static in the first quarter. Value investors will likely take a hard pass at the company's lack of profits, despite its stellar growth. That said, the stock is selling for roughly 8 times sales, down from its mid-2025 peak of 27 times sales. On the other hand, Nvidia -- which is <em>highly profitable</em> -- and selling for just 27 times forward earnings, gives investors another way to play the AI boom. </p>
<p>That said, Nvidia's mentorship, combined with the company's accelerating revenue growth, might make it worth owning a small stake in CoreWeave as part of a balanced portfolio.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

📢Giveaway Event
Data center stocks CoreWeave and Iren have already reported earnings, with NBIS set to take center stage this Wednesday. The sector has been strong since the beginning of the year! Which side are you on in this sector?1️⃣ The Trading Proponent – ​​How did you trade before and after the earnings reports? Share your actual holdings and entry/exit points, along with your judgment, for a higher chance of winning!2️⃣ The In-Depth Proponent – ​​Is Neocloud truly the sharpest shovel for AI? Write your independent analysis of CRWV/IREN/NBIS or the entire sector. Your opinions will earn you a chance!Reward Rules:🥇 Excellent Content Award: Up to HKD 10 stock voucher per person☀️ General Award: 88 Task Coins per personWinning entries will be selected through comprehensive evaluation. Entries must be well-reasoned, supported by evidence, and demonstrate independent judgment. Purely AI-generated content will not be accepted. No limit on the number of winners!The event ends at 24:00 on May 14th. Prizes will be distributed within 15 business days after the event ends. Changqiao reserves the right to interpret these terms and conditions.

<p>📢Giveaway Event<br>Data center stocks CoreWeave and Iren have already reported earnings, with NBIS set to take center stage this Wednesday. The sector has been strong since the beginning of the year! Which side are you on in this sector?</p><p>1️⃣ The Trading Proponent – ​​How did you trade before and after the earnings reports? Share your actual holdings and entry/exit points, along with your judgment, for a higher chance of winning!</p><p>2️⃣ The In-Depth Proponent – ​​Is Neocloud truly the sharpest shovel for AI? Write your independent analysis of CRWV/IREN/NBIS or the entire sector. Your opinions will earn you a chance!</p><p>Reward Rules:</p><p>🥇 Excellent Content Award: Up to HKD 10 stock voucher per person</p><p>☀️ General Award: 88 Task Coins per person</p><p>Winning entries will be selected through comprehensive evaluation. Entries must be well-reasoned, supported by evidence, and demonstrate independent judgment. Purely AI-generated content will not be accepted. No limit on the number of winners!</p><p>The event ends at 24:00 on May 14th. Prizes will be distributed within 15 business days after the event ends. Changqiao reserves the right to interpret these terms and conditions.</p>

Data center earnings season: Who is the true leader?

CRWV

CWVX

CRWG

CLOU

NVDY

NVDU

DTCR

NVDL

NVDX

CRWU

<p>Nvidia has significantly increased its stake in CoreWeave, now owning over 47.2 million shares, valued at $4.9 billion. CoreWeave, a leading neocloud provider, reported a 112% revenue growth to $2 billion in Q1, with a backlog of $99.4 billion. Despite not being profitable yet, its growth and Nvidia's support may attract investors looking to capitalize on the AI boom.</p>

- Artificial intelligence (AI) adoption is rapidly increasing, significantly benefitting companies like Nvidia, which owns 11% of neocloud provider CoreWeave.  
- CoreWeave reported a 112% year-over-year revenue increase to $2 billion and a backlog growth of 284% to $99.4 billion, indicating strong future demand.  
- Although CoreWeave is not yet profitable, Nvidia's investments and expertise could make a small stake in CoreWeave attractive for investors seeking exposure to the AI sector.

Motley Fool

Coreweave

Tradr 2X Long CRWV Daily ETF

Leverage Shares 2X Long CRWV Daily ETF

Global X Cloud Computing ETF

YieldMax NVDA Option Income Strategy ETF

Direxion Daily NVDA Bull 2X Shares

Global X Data Center & Dgtl Infrs ETF

GraniteShares 2x Long NVDA Daily ETF

T-Rex 2X Long NVIDIA Daily Target ETF

T-REX 2X Long CRWV Daily Target ETF

NVIDIA

NVIDIA Corporation

Nvidia Doubled Down on Its Second-Largest AI Holding. Should Investors Follow Suit?