Nvidia's Investments in AI Firms Signal Strong Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2026
0mins
Source: Fool
- Investment Confidence: Nvidia's significant stakes in CoreWeave and Nebius indicate strong confidence in their future returns, particularly as AI demand continues to rise, making these companies attractive investment opportunities for investors.
- CoreWeave's Rapid Growth: CoreWeave reported a remarkable 112% revenue growth in Q1, reaching $2.1 billion, with a backlog of nearly $100 billion indicating robust market demand; if it can achieve profitability, Nvidia's investment could yield substantial returns.
- Nebius's Astonishing Growth: Nebius achieved $399 million in revenue during Q1, growing at an impressive 684%, and its full-stack solutions appeal to a wide range of clients, positioning it as a potential major cash cow in the AI computing market.
- Debt Burden Challenges: Despite rapid expansion, both companies face significant debt loads that could hinder profitability; balancing debt with capital expenditures will be crucial for future growth, while Nvidia's backing provides a strategic advantage.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 107.580
Low
68.00
Averages
123.23
High
180.00
Current: 107.580
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Google Partners with Blackstone for New Cloud Computing Venture
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- Joint Venture Formation: Google is partnering with Blackstone to establish a new neocloud compute-as-a-service company, with Blackstone providing $5 billion in capital and Google supplying TPUs and software, enhancing Google's competitive edge in the cloud computing market, particularly against Nvidia.
- Market Competition Threat: The new joint venture plans to deploy 500 megawatts of TPU capacity by next year and scale rapidly, posing a significant threat to CoreWeave and Nebius, especially in terms of pricing, which could impact their market share and profitability.
- Economies of Scale: Google aims to grow demand for its TPUs to achieve greater economies of scale, allowing it to secure priority with its manufacturing partner, Taiwan Semiconductor, thereby accelerating business growth and creating a virtuous cycle, which poses a potential threat to Nvidia.
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- Market Share Competition: The new joint venture plans to deploy 500 megawatts of TPU capacity by next year and scale rapidly, posing a potential threat to existing cloud leaders CoreWeave and Nebius, particularly in terms of pricing competition.
- Economies of Scale: By increasing demand for its TPUs, Google can place larger orders with its manufacturing partner, Taiwan Semiconductor, thereby gaining priority production rights, which facilitates faster business growth and reinvestment, creating a virtuous cycle.
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- Investor Confidence Boosted: Nvidia's role as a major investor in both companies signals confidence in Nebius and CoreWeave, particularly against the backdrop of insatiable AI demand, further solidifying the investment value of these stocks.
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- Custom Chip Market Potential: Broadcom aims to achieve $100 billion in revenue by 2027 primarily through partnerships with hyperscalers to design custom AI chips, indicating significant growth potential that will further solidify its position in the AI hardware sector.
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- Custom AI Chip Market: Broadcom plans to partner with hyperscalers to design custom AI chips, with expectations that this segment could drive revenue to $100 billion by 2027, indicating the company's strategic positioning in the rapidly growing AI hardware sector.
- Memory Chip Shortage: Micron is benefiting from a memory chip shortage, with projected revenue growth of 193% for 2023 and 57% for 2024, which will further solidify its market leadership and provide substantial returns for shareholders.
- Cloud Platform Expansion: Nebius achieved a staggering 684% revenue growth in Q1, primarily due to its AI-focused cloud platform development, and as more companies scramble for AI computing capacity, Nebius's market position is expected to continue rising.
See More
Google Partners with Blackstone for New Cloud Computing Venture
- TPU Delivery Initiative: During the Q1 earnings call, Google announced plans to deliver custom AI accelerator chips, Tensor Processing Units (TPUs), to select customers, having already signed a deal with Anthropic and a tentative agreement with Meta, indicating Google's intent to expand in the AI hardware market.
- Joint Venture Formation: Google is partnering with Blackstone to establish a new neocloud compute-as-a-service company, with Blackstone providing $5 billion in capital and Google supplying TPUs and software, enhancing Google's competitive edge in the cloud computing market, particularly against Nvidia.
- Market Competition Threat: The new joint venture plans to deploy 500 megawatts of TPU capacity by next year and scale rapidly, posing a significant threat to CoreWeave and Nebius, especially in terms of pricing, which could impact their market share and profitability.
- Economies of Scale: Google aims to grow demand for its TPUs to achieve greater economies of scale, allowing it to secure priority with its manufacturing partner, Taiwan Semiconductor, thereby accelerating business growth and creating a virtuous cycle, which poses a potential threat to Nvidia.
See More
Google Partners with Blackstone to Expand AI Accelerator Business
- Partnership Formation: Google has formed a joint venture with Blackstone, where Blackstone will provide $5 billion in capital while Google supplies custom TPU chips and software, aiming to establish a new cloud computing service focused on AI, thereby enhancing market competitiveness.
- Market Share Competition: The new joint venture plans to deploy 500 megawatts of TPU capacity by next year and scale rapidly, posing a potential threat to existing cloud leaders CoreWeave and Nebius, particularly in terms of pricing competition.
- Economies of Scale: By increasing demand for its TPUs, Google can place larger orders with its manufacturing partner, Taiwan Semiconductor, thereby gaining priority production rights, which facilitates faster business growth and reinvestment, creating a virtuous cycle.
- Competitive Advantage: The joint venture's vertical integration strategy, combined with Blackstone's resource acquisition capabilities, is expected to significantly lower costs, putting pressure on CoreWeave and Nebius, potentially impacting their future pricing strategies and market share.
See More
Investment Opportunities in Hypergrowth AI Stocks
- Surging Market Demand: Both Nebius and CoreWeave, as emerging cloud computing companies, achieved year-over-year growth rates of 684% and 112% in Q1, respectively, indicating strong market demand for AI solutions and attracting partnerships with major clients like Meta and Microsoft, which further solidifies their market positions.
- Revenue and Backlog: CoreWeave reported quarterly revenue of $2.1 billion and boasts a nearly $100 billion revenue backlog, with a third expected to be realized over the next two years, reflecting high demand for its platform and signaling sustained growth potential ahead.
- Expansion Plans: Nebius plans to add several data centers by 2026, projecting its annual revenue to rise from $1.25 billion at the end of 2025 to between $7 billion and $9 billion, showcasing its rapid expansion capabilities and promising market outlook.
- Financing Risks: Unlike major cloud providers, these companies rely on debt financing for their data center build-outs, which introduces higher risks; however, investors must recognize that high returns often come with high risks, especially in the context of insatiable AI demand.
See More
AI Companies Rapid Expansion and Investment Insights
- Significant Revenue Growth: CoreWeave achieved an impressive 112% year-over-year growth in its latest quarter, with quarterly revenue reaching $2.1 billion, indicating strong demand for its platform, and its nearly $100 billion revenue backlog is expected to realize a third over the next two years, further driving growth.
- Nebius Rapid Expansion: Nebius posted a staggering 684% year-over-year growth rate in Q1, reaching $399 million in revenue, and is projected to increase its annual run rate from $1.25 billion to between $7 billion and $9 billion by 2026 through the addition of several new data centers, showcasing its strong market potential.
- Investor Confidence Boosted: Nvidia's role as a major investor in both companies signals confidence in Nebius and CoreWeave, particularly against the backdrop of insatiable AI demand, further solidifying the investment value of these stocks.
- Risks and Opportunities: While both companies demonstrate robust growth potential, their reliance on debt or equity issuance for funding data center expansions, due to the absence of a core business, increases investment risks, necessitating careful evaluation by investors.
See More
Analysis of Investment Opportunities in Artificial Intelligence
- Data Center Investment Outlook: Nvidia anticipates global data center capital expenditures will rise from $600 billion in 2025 to between $3 trillion and $4 trillion by 2030, indicating strong market demand and suggesting that the company's leadership in high-end processors will continue to drive its stock price higher.
- Custom Chip Market Potential: Broadcom aims to achieve $100 billion in revenue by 2027 primarily through partnerships with hyperscalers to design custom AI chips, indicating significant growth potential that will further solidify its position in the AI hardware sector.
- Memory Chip Shortage Benefits: Micron's revenue is expected to grow by 193% in 2023 and 57% in 2024, as the demand for memory chips is projected to triple from 2025 to 2028, allowing Micron to maintain pricing and profit advantages, which will drive its stock price upward.
- Cloud Platform Expansion: Nebius experienced a staggering 684% revenue growth in Q1, driven by its AI-tailored cloud platform, and as demand for AI computing capacity increases, Nebius's popularity will continue to rise, likely boosting its stock price further.
See More
Top 5 Stocks to Capitalize on AI Investment Opportunities
- Data Center Spending Forecast: Nvidia anticipates global data center capital expenditures will rise from $600 billion in 2025 to between $3 trillion and $4 trillion by 2030, highlighting the immense potential of AI infrastructure development, making it crucial for investors to pay attention to this trend for market opportunities.
- Custom AI Chip Market: Broadcom plans to partner with hyperscalers to design custom AI chips, with expectations that this segment could drive revenue to $100 billion by 2027, indicating the company's strategic positioning in the rapidly growing AI hardware sector.
- Memory Chip Shortage: Micron is benefiting from a memory chip shortage, with projected revenue growth of 193% for 2023 and 57% for 2024, which will further solidify its market leadership and provide substantial returns for shareholders.
- Cloud Platform Expansion: Nebius achieved a staggering 684% revenue growth in Q1, primarily due to its AI-focused cloud platform development, and as more companies scramble for AI computing capacity, Nebius's market position is expected to continue rising.
See More
