This Nvidia-Backed Stock Is Slated to Quadruple Its Revenue by 2027

Nvidia (NVDA 3.17%) is one of the most popular AI investment picks on the market, but Nvidia itself is also investing in several AI companies. While several stocks have come in and left Nvidia’s portfolio, one stock has stuck around that Nvidia has made a significant investment in: CoreWeave (CRWV +0.85%). Nvidia is a massive CoreWeave shareholder and owns more than 24 million shares. Its total investment is worth over $2 billion, showcasing how much money is wrapped up in the CoreWeave investment.

CoreWeave is essentially a cloud computing company that’s focused solely on providing AI computing power. It’s seeing rapid growth due to its popularity, and it deploys Nvidia chips, which is why Nvidia has taken notice and invested in it. But does that mean it’s a great buy now?

Image source: Getty Images.

CoreWeave’s revenue is expected to rocket higher over the next few years

The first thing that catches my eye is CoreWeave’s expected growth rate. In the fourth quarter, CoreWeave delivered an impressive 110% year-over-year growth rate, but that’s nothing compared to where it’s going. It reported a revenue backlog of nearly $67 billion, up 342% year over year. This indicates that demand for CoreWeave’s platform is growing faster than it can build out its computing infrastructure. CoreWeave is clearly doing something right, and with several AI hyperscalers among its client list, it’s clear that CoreWeave is a top option in this space.

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NASDAQ: CRWV

CoreWeave

Today’s Change

(0.85%) $0.69

Current Price

$81.35

Key Data Points

Market Cap

$42B

Day’s Range

$77.60 - $83.11

52wk Range

$33.52 - $187.00

Volume

831K

Avg Vol

25M

Gross Margin

47.77%

Wall Street expects monster growth as well. Over the past 12 months, CoreWeave generated $5.13 billion in revenue. By the end of 2026, that figure is expected to rise to $12.5 billion. By the end of 2027, analysts expect $23.1 billion. That’s more than a fourfold increase in just two years – a growth rate that is rarely seen. CoreWeave is poised to become a giant over the next few years, which may prompt investors to rush into the stock.

But there’s one holdup investors should be aware of: profits.

CoreWeave is rightfully spending every dollar it can to build out its footprint and capture market share before the AI build-out is complete. The idea here is that CoreWeave captures market opportunity, then, when the demand tapers off, it focuses on profitability. It generates huge returns for shareholders from the long-term relationships it has built with AI hyperscalers. The question is, when will that profitability switch flip? Nobody really knows, and it could be years before CoreWeave generates profits for shareholders.

If you’re OK with this, then CoreWeave could be a great pick for you. If you’re not, there are plenty of other AI stocks that are making huge profits, like Nvidia.