The Zacks Analyst Blog Highlights NVIDIA and CoreWeave

For Immediate ReleaseChicago, IL – August 29, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA and CoreWeave, Inc. CRWV.Here are highlights from Thursday’s Analyst Blog:NVIDIA vs. CoreWeave: Which Stock Offers Greater AI Upside?Amid the rapidly growing artificial intelligence (AI) market, NVIDIA Corp. saw a significant rise in sales of data center graphics processing units (GPUs), resulting in an astonishing 33,300% increase over the past decade and boosting its market cap above $4 trillion.Meanwhile, another AI-focused company, CoreWeave, Inc., with a smaller market cap of $47 billion, is also experiencing growth, prompting investors to wonder if it can achieve similar success. Let's examine which company currently has more growth potential, especially after both companies released positive earnings reports for the second quarter.Reasons to Be Bullish on NVIDIA StockNVIDIA recently reported positive growth in both top and bottom lines for the fiscal second quarter. In the quarter, NVIDIA's revenues increased by 56% from $30.04 billion a year ago. The generative AI boom has helped NVIDIA post year-over-year revenue growth of more than 50% for nine successive quarters.During the fiscal second quarter, CEO Jensen Huang was expected to receive authorization from the U.S. government to sell its H20 chips to China. However, NVIDIA didn't sell any such chips to China; instead, they gained $180 million by selling H2O inventory to a customer located outside of China.NVIDIA's growth is fueled by its data center operations, which focus on GPUs. This division saw revenues jump 56% year over year to $41.1 billion. Major cloud providers have increased their purchase of Blackwell chips, whose sales climbed 17% from the first quarter. The sales of NVIDIA's new product lines now represent 70% of the company's data center revenues.NVIDIA's gaming division, as well as its robotics division, saw sales jump 49% and 69% on an annual basis in the fiscal second quarter. NVIDIA expects total sales growth for the current quarter to remain higher than 50%, and earnings to continue improving. In the most recent reported quarter, NVIDIA's net income increased by 59% to $26.42 billion, up from $16.6 billion in the same quarter last year.Reasons to Be Bullish on CoreWeave StockUnprecedented demand for AI helped CoreWeave register a strong second-quarter performance. CoreWeave's revenues more than tripled from $395.4 million a year ago.The company now sees $1.26 billion to $1.30 billion in revenues for the third quarter, and for the full year, revenues are expected to come between $5.15 billion and $5.35 billion. The full-year forecast has improved from the prior guidance of $4.9 billion to $5.1 billion.In the second quarter, CoreWeave has been able to minimize its net loss to $290.5 million from $323 million a year ago. CoreWeave's acquisition of Weights and Biases and its collaboration with OpenAI positively influenced its performance in the quarter.Things may start looking brighter once CoreWeave's data center project, located in New Jersey, is completed by 2026. CoreWeave's underwriters in its March initial public offering ("IPO"), The Goldman Sachs Group, Inc. (GS) and Morgan Stanley (MS), are now turning into customers, which is certainly a positive development.NVIDIA or CoreWeave: Which AI Stock Has More Growth Potential?Both NVIDIA and CoreWeave have shown commendable performance in the second quarter, with each company providing positive guidance. However, unlike NVIDIA, CoreWeave's operating margins shrank to only 2% in the second quarter from 20% a year ago. CoreWeave is not yet a profitable business, and its operating expenses are expected to jump as it continues to increase its data centers in the United States and Europe.CoreWeave already has a high level of debt, and its annual interest payments soared to $784 million last year from $28 million in 2022. By the end of the first half of 2025, CoreWeave's cash and equivalents of $1.15 billion were much less than its total liabilities of $22.42 billion.On the other hand, NVIDIA is a cash-rich company with a strong balance sheet. As of April 27, 2025, the company's cash and cash equivalents were almost $53.7 billion, way higher than its long-term debt of $8.46 billion.CoreWeave's business model may not be sustainable. The company exclusively offers cloud-based GPUs for handling AI tasks. However, bigger tech players like Amazon.com, Inc.'s (AMZN) AWS may introduce its own cloud-based GPUs at a much lower price and threaten CoreWeave's business.In contrast, NVIDIA is a leader in AI hardware; its CUDA software platform enjoys a competitive moat, and the company also dominates in gaming and professional visualization.In conclusion, NVIDIA's diverse business and robust financial standing position it as a more balanced and resilient stock, capable of more long-term growth than CoreWeave, which remains more of a speculative investment. For now, both NVIDIA and CoreWeave have a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks