Love it or hate it, artificial intelligence (AI) is likely the most transformative and profitable technology in recent history. According to the International Monetary Fund, AI could affect 40% of all jobs around the world, while Goldman Sachs predicted two years ago that it would increase the global GDP by no less than $7 trillion by 2033.
Investors eager to profit have had a field day, or rather a field couple of years, since the initial AI boom, flocking to companies like Nvidia (NASDAQ: NVDA) and its competitors, like Palantir Technologies (NASDAQ: PLTR), whose AIP tool has been nothing short of revolutionary. The numbers speak for themselves, as the company’s stock has surged over 1,000% since AIP was released. Not to mention that the U.S. Department of Defense relies on its solutions.
Now, though, another actor has burst onto the scene: CoreWeave (NASDAQ: CRWV).
Could CoreWeave be the next big AI stock?
CoreWeave had its initial public offering (IPO) exactly two months ago, on March 28, 2025, and since then, its shares have jumped over 209%. Also notable is CoreWeave’s projected revenue of $5.1 billion in 2025.
The company has also named Carl Holshouser as the new Vice President of Government Affairs. Holshouser brings over two decades of experience on Capitol Hill and technology and is expected to lead the company as it forges new relationships with the government. This is a critical move since AI regulation is becoming an ever hotter topic and CoreWeave appears to be putting more emphasis on enterprise clients.
A lot hinges on the success of this approach. Remember: CoreWeave focuses purely on cloud infrastructure for generative AI. This makes it a kind of anti-Qualcomm (NASDAQ: QCOM), whose operations are primarily focused on Edge AI.
CoreWeave’s business model has so far been quite effective. However, it could easily be argued that it was mostly due to the initial hype generated by the technology. After all, AI adoption at enterprise levels is still in its infancy, and there is no saying how things are going to play out, not just for CoreWeave but the sector in general.
It’s a long-term investment
Note that CoreWeave is not yet as profitable as Palantir is. In fact, it posted an adjusted non-GAAP net loss of $150 million last quarter, compared to the $24 million last year. The adjusted loss appears to have been impacted by higher-than-expected interest expense.
Likewise, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for Q1 2025 was $606 million, an almost sixfold increase compared to Q1 2024. This highlights one huge risk: capital intensity. Namely, building and scaling graphics processing unit (GPU) data centers isn’t exactly the cheapest of operations, and CoreWeave’s debt could become too much to bear if the growth slows down.
Investors should also note that CoreWeave does not pay a dividend. In other words, CRWV is more of a growth stock that comes with both upside potential and a hefty dose of risk.
Don’t ignore BigBear.ai either
BigBear (NYSE: BBAI) is another company to potentially keep an eye on. Its stock recently jumped 23.3% in a single session amid increased market interest in performance analytics, the area BigBear is targeting the most.
However, despite the rally, the stock is still speculative. For one, it does not have the reputation enjoyed by Palantir, and it has seen three CEO swaps since its IPO. Second, the company projects full-year revenue growth between $160–$180 million, which is merely 1%–14%.
Accordingly, analysts remain uncertain, with a lot of mixed opinions circling around. Based on forecasts from four analysts on TipRanks, the average 12-month price target sits at $4.83. Data from GuruFocus, on the other hand, suggests it might drop by -9.91%.
All things considered, BigBear appears to be a mostly sentiment-driven trade.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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