Nvidia and CoreWeave: Evaluating which AI stock stands to benefit most from the AI supercycle

Nvidia and CoreWeave are frequently discussed together in the context of the AI buildout, but the relationship between the two is more intertwined than a typical rivalry. Nvidia remains the dominant supplier of AI accelerators, while CoreWeave has built a cloud infrastructure designed for AI workloads. Investors should also note that Nvidia is a major investor in CoreWeave, meaning the two are not direct competitors—though both compete for investor attention as potential “AI supercycle” beneficiaries.

The case for Nvidia

Nvidia’s position is reinforced by how closely its financial results have tracked the AI boom. Since just before OpenAI released GPT-4, Nvidia’s revenue and stock price have surged. In fiscal 2026 (ended Jan. 26), revenue rose by 65%, following a 78% increase in the prior year. Despite a slight pullback, Nvidia stock is up by around 1,360% over the last 3.5 years.

The company’s scale and financial strength are central to its appeal. Nvidia is described as a top performer with substantial liquidity and a robust balance sheet that can support continued growth, even though the stock trades at premium multiples tied to its high growth profile. The same size and liquidity that help cushion downside risk may also limit the ability to deliver rapid, outsized growth.

Why investors might consider CoreWeave

CoreWeave’s pitch centers on demand for AI-tailored cloud infrastructure. The company has attracted both investors and customers, and while its stock has been volatile, it is up by almost 85% since its March 2025 debut.

CoreWeave’s recent operating figures highlight the scale of demand. In the fourth quarter of 2025, backlog rose to $67 billion. For 2025, CoreWeave generated more than $5.1 billion in revenue, representing a 167% year-over-year increase.

Financing and liquidity risks

Despite strong demand indicators, the article emphasizes that CoreWeave faces significant challenges in meeting that demand. The company is said to have only around $3.9 billion in liquidity, which the article notes may not be sufficient for its needs. In 2025, CoreWeave spent more than $10 billion in capital expenditures.

To fund expansion, CoreWeave increased its outstanding shares by 13% to nearly 526 million, but it also relied primarily on debt. As a result, the company’s total debt now exceeds $21 billion—up from around $7.9 billion in the previous year. The article also points to a mismatch between leverage and book value, noting book value of $3.3 billion.

With massive losses, CoreWeave does not have a P/E ratio. Some investors may focus on its recent 6.1 price-to-sales (P/S) ratio, described as low for a fast-growing company. However, the article frames the valuation as potentially “cheap for a reason,” given the company’s debt burden.

Nvidia or CoreWeave?

The article concludes that the decision largely depends on investors’ risk tolerance. CoreWeave is presented as having greater growth potential in percentage terms, partly because its market capitalization is less than 1% of Nvidia’s, which could allow for higher-percentage gains. The article also suggests that if CoreWeave can finance growth without damaging its financial position, the stock could become highly valuable over time.

At the same time, CoreWeave’s high debt levels and continuing need for investment are described as making its growth path uncertain. That uncertainty contrasts with Nvidia’s profile: despite its size, Nvidia has delivered massive absolute growth and maintains high liquidity that the article says gives it more control over its trajectory. The article also notes Nvidia’s relatively low P/E ratio as an additional factor for investors seeking a more conservative approach.

Overall, the article suggests that investors with a higher risk tolerance may prefer CoreWeave, while Nvidia is positioned as a growth-oriented option at a “reasonable price” for those aiming to reduce risk.